EMS Growth Expected for E. Europe

EMS growth throughout Eastern Europe is expected to increase by 10.5% through 2009, if the region can stop worker emigration to the West for better opportunities.

Scottish market research firm MHM has released a new report indicating the compound annual growth rate of electronic manufacturing services (EMS) in Central and Eastern Europe through 2009 will be approximately 10.5%. The largest growth is expected to occur in Bulgaria, Poland, Romania and Ukraine. Currently, the largest markets are in Hungary, Slovakia, and the Czech Republic.

Central and Eastern European Electronics Design and Manufacture capacity not including OEM/ODM) is expected to increase by 4 billion Euros. Original equipment manufacturers (OEM) and original design manufacturers will add an additional 12 billion Euros to the increased capacity.

This is great news for Eastern European economies. Previous reports indicated expected growth, but this new study is a positive sign for an expanded cross-section of Eastern Europe, providing a much-needed economic boost to sagging economies.

While the MHM study provides a positive outlook, Eastern Europe still needs to halt the exodus of workers seeking better opportunities in the West. The loss of workers has been so great that Eastern European nations are recruiting new workers from India and China to fill their vacant positions. This solution does not have positive long-term prospects. Hopefully, this EMS growth can provide these countries not only an economic boost, but also help stop the flow of workers out of the region.