Frost & Sullivan Anticipates Slovakian Electronics Manufacturing Market to Sustain Rapid Growth Despite the Economic Slowdown

LONDON - The current economic crisis and the imminent adoption of the Euro in 2009 by Slovakia are set to impact electronics manufacturing in the country. However, its strategic location, an economical labour force and robust national growth rates will support the continued expansion of the Slovakian electronics manufacturing market.

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New analysis from Frost & Sullivan (www.smt.frost.com), Slovakian Electronics Manufacturing Market, finds that the market earned revenues of US$4.13 billion in 2008 and estimates this to reach US$6.14 billion in 2015.

“The global economic slowdown, which has spread to emerging markets in Central and Eastern Europe (CEE), has had a sizeable impact on foreign direct investment (FDI) flowing into the country in the electronics manufacturing segment,” observes Frost & Sullivan Research Analyst Harish Natesan. “Further, with Slovakia adopting the Euro in 2009, manufacturers and suppliers alike are keeping their fingers crossed as to what impact this transition will have on the country’s electronics manufacturing sector.”

Slovakia, with its rapid economic growth rates and low labour costs, has become a preferred location for many original equipment manufacturers (OEMs) and electronic manufacturing services (EMS) companies operating in Central Europe. Low competition coupled with Slovakia’s strategic proximity to Western Europe has also given the country an edge over other rival destinations in Central Europe.

Slovakia has been significantly affected by the economic slowdown, which spread to Europe in 2008. Decreasing demand from key end-user segments has negatively impacted market revenues since 2008. This trend threatens to continue in 2009 as well.

“Thus, market growth rates are expected to fall appreciably in 2009,” cautions Natesan. “Further, the adoption of the Euro in 2009 is expected to result in an increase in operating expenses, motivating electronics assemblers to downsize labour and volumes to save on operating expenses and maintain profitability.”

Slovakia is increasingly becoming a manufacturing hub for liquid crystal display (LCD), with many OEMs finding the low competition favourable for investment. Further, closeness to Western European markets and shorter supply chains has made Slovakia an irresistible location for industrial EMS participants.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com , with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be sent to you by e-mail.

Slovakian Electronics Manufacturing Markets is part of the Surface Mount Technologies Growth Partnership Service programme, which also includes research in the following markets: Hungarian Electronics Manufacturing Markets, Polish Electronics Manufacturing Markets and Romanian Electronics Manufacturing Markets. 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.

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Slovakian Electronics Manufacturing Markets M355-28 Contact: Joanna Lewandowska Corporate Communications - Europe P: +48-22-390-41-46 E: joanna.lewandowska@frost.com

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Source: Frost & Sullivan

Joanna Lewandowska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-41-46, joanna.lewandowska at frost.com; Photo: https://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO