Electronics Production | September 08, 2009
CEE EMS industry accounts for 55% of Europe
With revenues forecast to decline by over 13% in 2009 the European EMS industry is facing a period of uncertainty and rapid change.
According to the ninth edition of the EMS-report from Reportlinker, in Western Europe the leading Tier 1 EMS providers have already relocated volume manufacturing to lower cost locations. They have however retained a manufacturing presence and are looking to compete in the growth markets of aerospace & defence, medical, control & instrumentation, automotive and industrial as they recover in the 2010/2011 timeframe. It is here that the real battle for the vast majority of the around 700 EMS companies in Europe will take place. Competition is expected to intensify with the emergence of regional players with multiple locations and strong focus on the growth markets. It is also the market being served by the large number, over 600, of national EMS providers with a single manufacturing facility and small but long established customer base. Increased competition will lead to consolidation as companies are acquired or close due to ever increasing financial pressures, although it is not expected that there will be a mass exodus of companies in the period to 2013. There is a more than distinct possibility that one or possibly two of the major Tier 1 EMS companies will merge. Mergers between the major European EMS providers, is also a possibility although this is expected to be either on a national or sub-regional basis rather than pan-European. A key trend in recent years has been the migration in EMS production from Western Europe to Central and Eastern Europe (CEE) resulting in the CEE accounting for just under 55% of European EMS revenues in 2008. This is expected to fall slightly in 2009 as the major Tier 1 EMS providers cut back production to meet lower demand, EMS revenues in the CEE forecast to decline by 17% during the year. As end demand recovers so will the share the CEE accounts of the EMS market although the previous double-digit annual growth will reduce to a more pedestrian pace of 5-6% from 2010 to 2013. The transfer of production from Western Europe will continue to be an important factor in the region's growth in particular in lower volume high mix products. Reportlinker’s ninth edition of The European EMS Industry report 2008-2013 highlights the issues impacting the European EMS industry. This report provides an analysis and revenue forecasts for both West and East and Central Europe in a single report. It also includes the key trends impacting the major EMS companies by market group, detailed profiles of the Top 20 European EMS companies, including a ranking for 2008, a ranking of the Top 50 EMS providers in Europe, country and regional profiles including key trends, the role of the Global "Tier 1" companies and profiles of the major EMS companies an a directory of over 1,000 manufacturing locations. Image Source: Optronic