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Electronics Production |

Medical EMS rises sharply, Assembly<br>still required in Western Europe

UK-based analyst firm MHM's survey of European based Medical Electronics Equipment suppliers gives an indication of which regions are of most interest – both on a company and sector basis.

The bar chart shows that the most popular location for Medical electronics manufacture (in terms of numbers of mentions) at 76% is Western Europe. Within those companies requiring West European production the breakdown was as follows: Production only required in Western Europe – Characteristic of this category are small/medium sized European Medical companies Western Europe + Eastern Europe cost base preference – No companies preferring only Western plus Eastern Europe! (ie no Asia) Western Europe + Eastern Europe + Asia – Many well known names large and small Western Europe + Asia – A number of companies by-passing Eastern Europe using Western Europe and China for low- cost-base In fact CEE region is the largest Medical Electronics equipment manufacturing region in Europe, for EMS Medical production. In addition it may be seen that very few Medical equipment suppliers require only low cost base production:- Eastern Europe + Asia – Very few requiring only low cost base production, most also require high cost base production also (Western Europe). Only 15% of preference mentions were for the Americas – this would seem to indicate that companies surveyed in Europe have minimal North America production requirements. Integrated EMS at Major Medical Brand Names For an EMS or ODM player developing the Medical sector, in Europe in 2007, the prospects are good: 80% of PCBA Outsourced – Vast majority of outsourcing is 100% of PCBA 34% of Component/Assembly Purchasing Outsourced – A good ratio 29% of Box Build Outsourced But:- 20% of OEMs not using Outsourcing at all (possibility for future development) Viewing the significant outsourcing existing today – plus the increasing use of outsourcing in the Medical sector – there are many current and future opportunities. Service & Repair – Medical Sector MHM's surveys show a mostly European 'in-house' Service & Repair business – with some exceptions having global operations. MHM's estimate for the proportion of Service & Repair outsourced today is around 15%.

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