Central and Eastern Europe Emerge as Strong Bases for Electronic Manufacturing Service Providers, Finds Frost & Sullivan

Central and Eastern Europe Emerge as Strong Bases for Electronic Manufacturing Service Providers, Finds Frost & Sullivan PR Newswire LONDON, Oct. 24, 2012 - With its promise of even greater cost savings, China threatens to burst the bubble of CEE's EMS providers LONDON, Oct. 24, 2012 /PRNewswire/ -- Cost reduction is the most important driver for the outsourcing market. The electronics manufacturing services (EMS) model yields an average of 10% to 15% in savings, which drives outsourcing from OEMs to EMS providers. By outsourcing, OEMs can reduce their capital expenditure and investments on property, plant, equipment, automation systems, infrastructure, and thereby convert fixed costs to variable costs. New analysis from Frost & Sullivan (http://www.smt.frost.com), Analysis of the European Electronic Manufacturing Services (EMS) Provider Market, finds that the markets earned revenues of $ 45.80 billion in 2011 and estimates this to reach $ 68.19 billion in 2016. "The outsourcing trend in industrial, medical, automotive and other sectors is set to offer more business opportunities for EMS providers in Europe," notes Frost & Sullivan Research Analyst Nupur Sinha. "Cost savings is one of the key factors for medical equipment and automotive electronics OEMs favouring outsourcing." OEMs may outsource some or all of their lower-margin activities, ranging from procurement, PCB and box assemblies, testing, and even the repair and warranty of sold products.