| West to East manufacturing crossover this year:
Analyst
Drew Wilson
EE Times Europe
04/03/2008 2:49 PM
BERLIN — Higher cost Western Europe has been seeing an exodus of electronics
manufacturing to Central and Eastern Europe. Nokia’s manufacturing shift
from Germany to lowcost Romania late last year is a high-profile indication
of the trend.
The trend is expected to be quantified in 2008. By years’ end, the value of
all electronics assembly -- to include OEM, EMS, ODM activity -- in Eastern
Europe is forecast to surpass that of Western Europe, according to
Scotland-based MHM Consulting.
In 2007, 53 percent of the total value of European electronics assembly was
done in the Western half. In 2009, the figure is expected to dwindle below
half to 44 percent as Central and Eastern Europe show an increase to 56
percent.
The bulk of Europe’s manufacturing is concentrated in communications and
computer/office equipment sectors, which together are forecast to account
for a total of $21B by 2009, according to MHM.
CEE companies are seizing the opportunities. The rise of the homegrown EMS
in the region in parallel with the redistribution of manufacturing has the
potential to create top tier players in the future.
CEE’s largest indigenous EMS is Hungary’s Videoton. Small but growing
contract manufacturers include Latvia’s Hanzas Elektronika and Fideltronik
in Poland.
MHM predicts that by the end of 2009, CEE will nearing 60 percent of all
European production value, with EMS n the region accounting for 85 percent
of total European EMS.
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