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Electronics Production | October 14, 2008

Contract Manufacturing in Europe to grow faster than elsewhere

Daniel Hawtof - VP, Performance Research, iSuppli, speaking at the ZVEI PCB EMS Conference, predicts that the European CM market will grow faster than that in America or Asia.
He continues in stating that contract manufacturing is a large business and it will eventually outgrow the electronics industry altogether, he predicts. The consolidation pattern that has emerged will continue, as well as specialization efforts.

He concludes in saying that differentiation can be helpful in providing an EMS-provider in the industry, but operational efficiency and a solid, consistent strategy is still the best business plan.

The chart below shows that many Scandinavian EMS-providers – such as Partnertech, Note or Kitron – pursue a highly specialised business strategy (in areas such as Medical, Industrial, Defence or Aerospace). However, the biggest names in the industry – such as Foxconn or Flextronics – pursue a more generalised business strategy.



Chart Source: iSuppli

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