Issue link: https://iconnect007.uberflip.com/i/1506834
SEPTEMBER 2023 I SMT007 MAGAZINE 41 sitive to increased labour costs because, unlike modern PCB manufacturing in other parts of the world, European PCB fabrication remains a labour-intensive manufacturing process due to lack of investment. Increased labour costs make European PCB fabricators less compet- itive. Stakeholders also voice concern about supply chain disruptions and the unavailabil- ity of equipment, materials, parts, and compo- nents regionally. European PCB companies report that they are disadvantaged by EU customs tariffs. Com- panies pay tariffs on the import of base materi- als used to produce PCBs, but there are no tar- iffs on bare PCBs that are imported for assem- bly. Base materials must be imported as local supply chains cannot fulfill the demand. Gov- ernment regulation remains a concern. Partic- ipants expressed a desire for greater regulatory restraint and greater harmonization of regu- lations. Other participants volunteered that energy costs constitute a serious threat to their business. Final Note EU action to support the industry must address supply and demand. Support to bolster capacity will be unsustainable unless demand increases concurrently. European EMS SWOT EMS Industry Snapshot EMS companies mount, connect, and assemble electronic components on bare PCB boards to make printed circuit assemblies. Increasingly EMS companies further provide additional services and expertise along the whole product lifecycle, design, and indus- trialisation, acting as pivotal partners in the digitalization process. Some European origi- nal equipment manufacturers (OEMs) assem- ble their own electronics, but many outsource their production to EMS companies, making them crucial players in the electronics value chain. According to Dieter Weiss at in4ma, the EU EMS ecosystem accounts for roughly €52 billion in revenue each year, which rep- resents about 8.2% of global production. His research shows 2,197 EMS facilities in the EU belonging to 1,881 companies. Some 80% of all EMS companies in Europe have less than €10 million in revenues and have a market share of the total European revenues of 11.2%. Figure 2.