Electronics Production | June 13, 2005
Epiq follows main-stream survival strategy
When the European electronics industry is under siege from the low-wage-Asia you have to find for your company a survival startegy.
"There is a market for convenience on the door step", said Mike Hannon, a consultant at MHM Business Development Services, in Scotland to My-ESM. He means that there will be some electronics production to remain in Europe thanks to the fact that companies think it's more convenient to have the manufacturing closer to the design. Epiq follows the now classical mid tier survival strategy for European electronics companies. Epiq has like other companies differentiated itself by focusing on less price sensitive markets, in it's case the automotive industry which accounts for 70% of the total revenue. By focusing on cost control and profitability instead of strong growth Epiq turned it's results from red numbers -45 million dollars in 2002 to 1.32 million dollars in profit in 2004. Epiq has the necessary geographic spread with factories in Mexico, Czech Republic and Bulgaria aside from the European factories in Germany, France and Belgium but the lack of a production unit in Asia is considered as a gap. "In the long term, we will have to look at Asia," said Alexander Verhees CEO of Epic to My-ESM.