Electronics Production | March 23, 2010
700 days payment terms for medical firms in Europe
Brazil and Mexico are putting many European countries to shame by paying their suppliers within 55 days.
Some half a million people are employed in the European medical technology sector. Its livelihood depends to a large extent on contracts with public authorities - most often public hospitals. Yet these authorities have failed to pay 10% of the total turnover of the medical technology sector and over €11 billion is owed to medical technology firms by three EU Member States alone. “Small medical technology firms are waiting for up to 700 days to be paid by public bodies. The situation has become so severe that some companies are facing bankruptcy or may consider to exit the market” said John Wilkinson, Chief Executive of Eucomed. “Unfortunately, patients will also suffer when companies withdraw from the market and the range of products and treatments available will be restricted. This will have the effect to adding to health inequalities across Europe.” Suppliers to the private sector can try to manage the problem by refusing to deliver goods until bills are paid or by seeking cash upfront. But when public local and national authorities are your principal customers, as is the case in the healthcare sector, this becomes more difficult. Healthcare companies not only have an ethical duty to deliver life-saving goods to patients but they would also risk their business relationships with the authorities that they serve. Public bodies in northern Europe generally accept that they have a duty to honour the terms of contracts. Elsewhere, national and local governments feel under no such obligation. In some cases, they clearly exploit their dominant position as near monopoly buyers. In Spain and Italy, the average payment time is approximately 250 days. However, in some of their regions, this figure exceeds 600 days. In order to alleviate the situation in Spain, the country’s Parliament will vote on 23 March 2010 on a law which foresees a 30 days payment target for public authorities as well as accelerated procedures for claiming interest. Meanwhile, the situation is much the same in Turkey with public authorities taking on average 256 days to pay suppliers. However, it is not all doom and gloom in Europe. For example, the British Government has committed central Departments and agencies like the National Health Service to pay within 10 days. This measure is part of a package to help in particular small and medium-sized businesses through the economic downturn and has resulted in nine out of ten invoices now being paid within that timescale. Ireland is another country where the Government is helping industry to recover from the crisis. Central government departments have committed to pay within 15 days with state bodies such as the Health Services Executive (HSE) promising to pay within 30 days. “The situation across Europe varies dramatically and it is extremely surprising that countries such as Brazil and Mexico are paying suppliers quicker than many European countries,” said Mr Wilkinson. “To bring Europe up to speed, the Late Payments Directive should eliminate loopholes and encourage early payment by imposing penalties.”
REDCOM EMS expands certification for medical device manufacturing New York-based REDCOM EMS has secured ISO 13485:2016 certification, complementing the company’s existing ISO 9001:2015 and AS9100D certifications.
Ozark Integrated Circuits nabs U.S. Air Force grant Arkansas-based Ozark Integrated Circuits Inc., located in the Arkansas Research and Technology Park at the University of Arkansas, has received a USD 750,000 award from the U.S. Air Force.
Norwegian EMS adds employees to Polish unit The last couple of months Norautron has welcomed three new colleagues at its office in Sdunska Wola, Poland.
Daimler’s battery production in Kamenz gradually increases production Local battery production is described as an important success factor for Mercedes-Benz AG’s electric offensive and a key element to flexibly and efficiently meet the global demand for electrified vehicles.
Tepcomp invests in new additional production line Finnish EMS provider, Tepcomp Group, has made a significant investment at its production plant in Turku. The new surface mount technology production line will significantly improve the productivity and energy efficiency of the plant.
Valoe is on schedule with both production and expected deliveries Valoe says it will start manufacturing IBC test modules in Juva, Finland in June and cell deliveries from Lithuania to customers is scheduled to start according to plan.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.
PCB manufacturer SQP invests in new plasma treatment system As part of the continuous upgrade of the PCB manufacturing processes the Slovakian PCB manufacturer SQP International has invested in a new plasma treatment system.
Nordson delivers solid quarter considering COVID-19's impact on global end markets Nordson Corporation reported second quarter sales of USD 529 million, a 4% decrease compared to the prior year’s second quarter sales of USD 551 million.
Cicor expands its clean room set up in Bronschhofen Swiss EMS provider Cicor Group is currently expanding its site in Bronschhofen with a 60 square metre ISO Class 6 clean room.
Senate Dems to Trump: Release details of TSMC plant deal Democratic lawmakers are pressuring the Trump administration to respond to serious questions about Taiwan Semiconductor Manufacturing Co Ltd’s (TSMC) plans to build a USD 12 billion plant in Arizona, which the company announced last week.
SOS LAB completes series A+, inks MOU with ON Semi LiDAR sensor maker SOS LAB has secured series A+ investment funding of USD 8 million as of April.
Expanded US rules sanctioning Huawei to have little impact on memory industry TrendForce believes that the latest updates to the sanctions will have a relatively low impact, in the short term, on Huawei’s shipment of smartphones, notebook computers, and servers – products for which Huawei is relatively well stocked on components.Load more news