© adam121 dreamstime.com Analysis | December 07, 2015
The state of European contract manufacturing
How is the European EMS market actually doing, and how will it develop? Research firm Reed Electronics Research, has released its latest report on the state of the industry in Europe, and hopefully we can straighten out a couple of question marks.
Demand for most EMS companies was muted in 2014 and electronic production revenues for EMS in Western Europe were 3% below those of 2013. An increase for EMS revenues in Central and Eastern Europe, and Middle East and North Africa (CEE/MENA) helped the overall European market post growth of 0.5%. Although the economic recovery in the euro area and the EU is now entering its third year it has been subdued compared to past experiences. The slowdown in emerging market economies, increased global uncertainty, and persistent geopolitical tensions which have hampered growth in 2015 will continue into 2016. Against this backdrop of low growth we estimate that in 2015, the total European EMS revenues are forecast to reach Euro 25.60 billion with the greater part Euro 15.15 billion achieved by companies in Central and Eastern Europe (CEE), Middle East and North Africa, (MENA) and other countries, and Western Europe Euro 10.45 billion. We do expect that the economic conditions will improve through to 2019 and by that time we expect that total European revenues will reach Euro 27.37 billion with CEE/MENA showing a compound average annual growth rate (CAAGR) of 1.4% to total Euro 16.21 billion. Similarly, we expect the EMS revenues in Western Europe to grow to Euro 11.16 billion at a CAAGR of 1.48% over the period 2014-2019. Although made up of over 1,000 companies in Europe, the industry is dominated by a small number of Global players with the Top 3 – Foxconn, Flextronics and Jabil – accounting for around 44.5% of revenues in 2014, with nearly 90% from plants in CEE focused on the Computer, Consumer and Communication (3C) sectors. Approaching 75% of the total sales (Euro 19.1 billion) are achieved by the leading 50 companies or 5% of the total number. We are expecting that there will be further consolidation across the industry due to the downward price pressure, slow economic growth and requirement to broaden and deepen the design, development and aftercare services to customers. For EMS companies based in Western Europe, the most attractive market sectors are those of Aerospace and Defence, Automotive, Medical, Control & Instrumentation, Industrial, and Telecom (ADAMCIT) with additional good growth in the Energy, Transportation, LED Lighting and Renewables areas. In the CEE and other low cost countries, the focus remains on the transfer of production of low and medium volume/high mix electronic assembly from Western European EMS. If you want to learn more about the current state and the future of the European EMS industry, Peter Brent Consultant Editor of the “European Electronic Manufacturing Services Report” from Reed Electronics Research, will hold a presentation at Evertiq's TEC event in Gothenburg on January 28, 2016. To learn more or register, follow this link.
Celestica to manufacture ventilators for the Canadian market EMS provider Celestica has won a program to build 7,500 ventilators for StarFish Medical Inc., a Canadian medical device company, at Celestica’s operation in Newmarket, Ontario.
Ouman Estonia starts an expansion project Despite the current uncertain economical environment, Ouman says it believes in a brighter future and that the company is proud of the performance in its factories.
Reshaping production post COVID-19 As manufacturers re-open after COVID-19 related lockdowns, economic and supply chain disruptions may be felt beyond 2020. How companies shift in the short-term and plan for the long-term will be factors in defining “new normal” for the component industry.
Swedish EG Electronics acquires WEAB EG Electronics AB, a KAMIC Group company, has acquired all the shares in WEAB, Wermlands Elektronik AB.
ZF completes its acquisition of WABCO ZF Friedrichshafen AG has successfully completed the acquisition of commercial vehicle technology supplier WABCO, having gained approval from all required regulatory authorities.
Romanian EMS provider expands as it relocates Romanian EMS-Electra has successfully finalised the process of relocating to a new building, in the industrial area of Iasi, Romania.
Circuit Check partners with major healthcare company to build ventilators In early March, when a long-standing customer to the company, a major healthcare company approached Circuit Check to partner together to build over a dozen tests systems to assist in the COVID-19 efforts, Circuit Check responded quickly to the challenge.
TI maintains firm grip as world's top analog IC supplier TI's 2019 analog marketshare grew to 19% and ST climbed to fourth place as the top-10 suppliers collectively accounted for 62% of total analog sales.
Big Ass Fans adds third Hentec/RPS machine Complementing the purchase of two Hentec Industries/RPS Automation Vector 300 selective soldering machines in 2018, Big Ass Fans (BAF), a high-volume, low- speed (HVLS) airflow manufacturer, has just added a third machine to its factory in Newman Lake, Washington.
CE3 Electronics Inc. taps MIRTEC for 3D AOI technology Canada-based CE3 Electronics has purchased a MIRTEC MV-6 OMNI 3D AOI machine.
Gémosz is still looking to grow – but the pandemic brought new perspectives Winston Churchill famously said, “Never let a good crisis go to waste”. While this was said in a vastly different context than the current crisis of the COVID-19 pandemic, there is still truth to the fact that a crisis not only allows for change – but sometimes forces it.
North American PCB industry sales up 4.3% in April The IPC says that total North American PCB shipments in April 2020 were up 4.3% compared to the same month last year. Compared to the preceding month, April shipments fell 18.2%.
Volkswagen intensifies e-mobility activities in China Volkswagen has initiated the next chapter for its business in China. The automotive giant plans to increase its share in JAC Volkswagen, its joint venture for e-mobility.
GPV Selects Aegis as global smart factory partner Driven originally by accelerating customer expectations for traceability, GPV has selected Aegis’ FactoryLogix Smart digital manufacturing solution, targeting multiple values and benefits.
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.Load more news
- China falls far short of its "Made-in-China 2025" goal
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- ASML ships first-generation multibeam inspection system ‘eScan1000’
- Gémosz is still looking to grow – but the pandemic brought new perspectives
- Romanian EMS provider expands as it relocates