Electronics Production | December 03, 2009

Chart: Dominance in European EMS Industry

The huge production in Eastern European countries is dominated by large companies most of which belong to global EMS companies. In Western Europe, medium sized and small, local companies dominate the EMS scene. Sweden is an exception with large, local players.
The chart depicts on the x-axis the percentage of each country’s total EMS turnover produced by large EMS providers with turnover >50 MEUR. Along the y-axis is shown the percentage of each country’s total EMS turnover produced by global EMS providers. The area of the bubbles indicates the total EMS turnover by country.

The chart is simplified by not depicting all European countries.

Global EMS companies’ dominance
The Czech Republic, Hungary and Poland attracted global EMS providers and successfully made them invest in their countries. The Klaus Pildal Management has identified 7 global players dominating the EMS industry in The Czech Republic, Hungary and Poland where they account for between 74 and 95% of turnover.

In Western Europe, small and medium sized local companies dominate, and the global players account for between 4 and 23% of total turnover only.

Germany’s large EMS companies account for 44% of total German production, which amounts to 5.033 MEUR in 2008. Global EMS providers operating in Germany account for 4% only. Sweden is quite different with few large local companies accounting for 65% of total Swedish production and global players accounting for 10% of total.

France ranks second among the high-cost countries. There are many medium sized and small companies and the large ones account for just 37% of the total French EMS production. Global EMS providers account for 14% of total, according to Klaus Pildal Management.

The Czech Republic ranks second after Germany in terms of total turnover in the EMS industry. However, the total number of employees is much lower, and Czech EMS providers employ fewer people than their Swedish colleagues.

Apparently, the local European EMS companies are cleverly adapting to the local market conditions, as the global players leave the high-cost countries and focus on low-cost countries. It should be noted, though, that EMS companies in some countries, notably Sweden, employ an increasing share of their workforce in low-cost countries, according to Klaus Pildal Management.
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December 13 2018 1:08 pm V11.10.14-2