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Frost & Sullivan: Lower Competition and Operating Costs Transform Romania into the Fastest-Growing Outsourcing Hub in Europe

Posted on: Monday, 9 March 2009, 03:00 CDT

LONDON, March 9 /PRNewswire/ -- Romania has been attracting many contract manufacturers due to low competition and operating costs, making it one of the fastest-growing electronics manufacturing services (EMS) markets in Eastern Europe.

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New analysis from Frost & Sullivan (http://www.smt.frost.com), Romanian Electronics Manufacturing Markets, finds that the markets earned revenues of over $1.6 billion in 2008 and estimates this to reach $3.38 billion in 2014.

"Romania has been leading the paradigm shift in contract electronics manufacturing, which has been driving EMS providers in search of lower cost locations in Central and Eastern Europe (CEE)," says Harish Natesan, Frost & Sullivan Research Analyst. "Attractive investment incentives and Romania's strategic location have also made the country a preferred destination for EMS providers. Romania is poised to emerge as one of the largest electronics outsourcing industry in the long-term."

Romania's strategic proximity to Western Europe combined with its low corporate taxation policies and low-cost labour force has made manufacturers realise that it is an ideal location for electronics manufacturing. Due to these multiple advantages, Romania is gaining the edge over other countries in the region.

The economic slowdown that spread to Europe in 2008 has had an adverse effect on Romania. Decreasing demand in key end-user segments has been restraining the market since 2008 and is expected to persist in 2009.

The global economic slowdown will impact market revenues appreciably in 2009 with market growth rates expected to fall. Consequently, electronics assemblers are downsizing labour and volumes to save on operating expenses and maintain profitability.

"Operating in Romania is considered by many EMS executives as being equivalent to operating in China, in terms of total landed costs," concludes Natesan. "Further, proximity to Western European markets and shorter supply chains has made Romania an irresistible location for EMS providers."

Romanian 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 Growth Opportunities in the Electronics Manufacturing Markets in the Czech Republic. 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.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, please 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 brochure will be sent to you by e-mail.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

GIL 2009: Europe

Frost & Sullivan has expanded its flagship Global Congress on Corporate Growth - GIL Global - into several major cities around the world including London. For the first time ever in Europe, Frost & Sullivan will be hosting the Growth, Innovation and Leadership Congress 'GIL 2009: Europe' on 19-20 May, at the Sofitel St James in London. GIL Global is the industry's only event designed to support senior executives in their efforts to achieve sustainable, top-line growth. To register, obtain a programme agenda, explore sponsorship opportunities, or attend as a member of the media for GIL 2009: Europe, please contact Joanna Lewandowska, Corporate Communications for Frost & Sullivan in Europe, at Joanna.lewandowska@frost.com. One-on-One interviews with Frost & Sullivan senior growth consultants are also being scheduled. For more information you can also visit www.frost.com/gilglobal.

Romanian Electronics Manufacturing Markets

M317

Contact: Joanna Lewandowska Corporate Communications - Europe P: +48 22 390 41 46 E: joanna.lewandowska@frost.com http://www.frost.com/

SOURCE Frost & Sullivan

Source: PR Newswire

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