Leading global manufacturers of home appliances have already established manufacturing bases in Poland, while some key EMS participants have made sizeable investments in the design services sector in the Czech Republic, and some others have established footprints in Hungary.
“The globalization of many companies is changing the face of the EMS market, which is undergoing a massive transition with the product design and development being separated from the manufacturing process,” says Frost & Sullivan’s Janani Sankaran.
“The Eastern European electronics manufacturing market alone accounts for more than 50% of the overall European EMS markets and is expected to grow with a rise in the number of manufacturers in the region.”
Original equipment manufacturers (OEM) are increasingly turning their attention to smaller, emerging economies such as Romania, Bulgaria, Slovakia, Estonia, Lithuania, Belarus, and Turkey.
Although market participants have reasons to feel upbeat about their market prospects, EMS providers are faced with constant cash shortage. They have not been able to tap the Eastern European market as effectively as they have cashed in on the Western European market. Setting up an EMS facility would involve substantial investments, which, in the current economic environment, are difficult to come by.
“Companies with lesser exposure to OEMs that engage in in-sourcing activities are likely to benefit in these economic conditions,” notes Sankaran. “Governments in Eastern Europe are also doing their bit to encourage investments in the region by facilitating special economic zone (SEZ) allocations to EMS companies and providing them with tax rebates to set up their units in the Eastern European region.”
Apart from the governments’ efforts, market participants could also consolidate with original design manufacturers (ODMs) to take advantage of competitive market conditions.
Source: Frost & Sullivan, May 2009
Get a list of EMS manufacturers matching your program needs (Its free)
Venture Outsource has the largest, global database of contract electronics capabilities. Get a free list of contract EMS manufacturing companies matching your program needs.
“Was able to very quickly find details on the important elements of setting up EMS and ODM partnerships, talked with an advisor for personalized info on quality providers matching our requirements while getting up to speed quickly about the industry and connect with key staff from like-minded companies and potential partners. Great resource.”
— Jeff Treuhaft, Sr. Vice President, Fusion-IO
Advisors have access to detailed information on listings in our global database and can help you compare provider service capabilities to better match your program needs. Speak with a Provider Advisor. This free service is for electronic professionals working in OEM brand companies.
