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Low Labour Costs Significant in Making Eastern Europe the Global Hub for Electronics Manufacturing - With the electronics manufacturing sector in eastern Europe witnessing tremendous growth in the past decade, the region is emerging as a new global hub for the electronics manufacturing industry
Low Labour Costs Significant in Making Eastern Europe the Global Hub for Electronics Manufacturing

 

PRZOOM - /newswire/ - London, United Kingdom, 2007/06/11 - With the electronics manufacturing sector in eastern Europe witnessing tremendous growth in the past decade, the region is emerging as a new global hub for the electronics manufacturing industry.

   
 
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Regional factors such as reduced labour costs, increase of foreign direct investments (FDIs) and the growth in the production networks in the region, are influencing the growth in this industry and changing the overall dynamics of the market.

New analysis from Frost & Sullivan (electronics.frost.com) Growth of Eastern Europe as an Electronics Manufacturing Services (EMS) Hub, finds that that the electronics manufacturing services market in eastern Europe earned revenues of $9.0 billion in 2006 and estimates this to reach $23.7 billion in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with a growth overview of the Eastern Europe as an Electronics Manufacturing Services (EMS) Hub, send an email to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com with your full name, company name, title, telephone number, email address, city, state and country. We will send you the information by email upon receipt of the above information.

A structural transformation of the market is underway with manufacturing companies expanding to new locations and adopting a more global presence, resulting in the separation of product design and development from the manufacturing process itself.

“The need to maintain profit margins in the face of declining pricing trends and high competition has made low-cost manufacturing a necessity,” notes Frost & Sullivan Research Analyst Santosh Kumar P. “This is encouraging the continuing migration of manufacturing processes in the electronics industry to low-cost Asian countries and, lately, to eastern Europe.”

The development of the outsourcing model by original equipment manufacturers (OEMs) and electronics manufacturing service (EMS) providers is essentially driving the growth of the EMS market in eastern Europe.

In fact, the recession of 2001 has led to the establishment of many manufacturing units in this region and countries like Hungary and the Czech Republic have significantly exploited these opportunities to strengthen their economies.

The eastward expansion of the European Union (EU) also offers significant potential for future growth and investment opportunities, considering the proximity of these manufacturing locations to the various end-user markets.

Despite the encouraging growth context that is prevailing in eastern Europe, countries in the region are being challenged to transform an under-developed supplier base into a fully developed one that is adequate for supporting manufacturing facilities.

“Domestic companies to be cost-competitive and capable of producing similar quality products as that of global suppliers in the volumes required by OEM and EMS companies to improve the indigenous supply base,” explains Kumar. “In addition, factors such as government policies and proximity to western Europe need to be adequately addressed to facilitate the development of eastern Europe into a key global location for electronics manufacturing.”

Growth of Eastern Europe as an Electronics Manufacturing Services (EMS) Hub is part of the Surface Mount Technologies Growth Partnership Service Programme, which also includes research in the following markets: European SMT inspection equipment, European SMT soldering equipment, and European EMS. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics and demographics.

 
 
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Low Labour Costs Significant in Making Eastern Europe the Global Hub for Electronics Manufacturing

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Contact: Joanna Lewandowska 
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