Weaker sales for EMS companies in 1H

The forecast of weaker sales are among other things grounded by the competition from the low-cost regions and the continued excess capacity. Chris Whitmore, analyst at Deutsche Bank, predicted 7% growth year-over-year for the industry in 2005. "We remain concerned about the EMS industry's ability to meaningfully expand margins in the current business environment. We believe continued excess capacity, increasing competition from Asia-based producers and slowing near-term demand trends will likely result in continued margin pressure," Whitemore wrote. Information picked up at circuitsassembly.com.