{"id":36826,"date":"2022-02-15T09:00:00","date_gmt":"2022-02-15T08:00:00","guid":{"rendered":"https:\/\/fhi.nl\/nieuws\/crisisjaar-2021-lange-levertijden-stijgende-prijzen-en-een-hoopvol-nieuwjaar\/"},"modified":"2024-07-10T13:33:46","modified_gmt":"2024-07-10T11:33:46","slug":"crisisjaar-2021-lange-levertijden-stijgende-prijzen-en-een-hoopvol-nieuwjaar","status":"publish","type":"news","link":"https:\/\/fhi.nl\/en\/news\/crisisjaar-2021-lange-levertijden-stijgende-prijzen-en-een-hoopvol-nieuwjaar\/","title":{"rendered":"Crisis year 2021: long delivery times, rising prices and a hopeful New Year"},"content":{"rendered":"
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\n\t\t\t\t\tCrisis year 2021: long delivery times, rising prices and a hopeful New Year\t\t\t\t<\/h1>\n\n\t\t\t\t
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\u201cThe EMS industry is suffering from long delivery times, rising raw material prices and staff shortages, but there are also hopeful trends visible in the statistics for 2022.\u201d This was concluded by Dieter Weiss during his end-of-year lecture at the last EMS cluster meeting. Weiss is the founder and director of in4Ma, the largest research agency for the EMS industry in Europe. He is an internationally known specialist in statistics and trends within the EMS industry. At the FHI, together with Weiss and the cluster members, we looked back on a turbulent year, but also ahead.<\/strong><\/p>\r\n

\"\"\u201cThe 2021 crisis mainly affected smaller companies,\u201d Weiss said. \u201cLarger companies could still live on their stocks for a while. Their turnover dropped, but they still made a profit. This was different for smaller companies. Many fell into the red and the question is whether and how quickly they can bounce back from this.\u201d<\/p>\r\n

The problems within the supply chain <\/em>of the EMS industry emerged in 2019 due to the unexpectedly high demand for components. Electronics companies saw demand for their products increase by an average of 25 percent. For the automotive <\/em>industry, this percentage was as high as 50 percent due to the popularity of electric driving. The outbreak of the corona pandemic stimulated demand even more. All these developments together brought the already overheated EMS market to a boiling point.<\/p>\r\n

Ask hospitals<\/h2>\r\n

\"\"Weiss: \u201cPeople started working from home en masse during the pandemic. Demand for computers, air conditioners and other electronic devices skyrocketed. The demand from hospitals for medical equipment also increased due to the influx of corona patients. And then there comes a time when suppliers can no longer meet the demand or raise the price disproportionately,\u201d Weiss continues. \u201cTensions sometimes ran high, also between companies. All companies ultimately want to satisfy their customers.\u201d<\/p>\r\n

If the latter is no longer possible, the consequences are sometimes dire. Weiss also sees this reflected in the statistics. \u201cIn the past two years, 71 European EMS companies have had to close their doors and there is no end in sight,\u201d said Weiss. \u201cWe are in the eye of the storm right now.\u201d<\/p>\r\n

Hopeful trends<\/h2>\r\n

Despite these depressing numbers, Weiss ended his talk with a hopeful message. \u201cThe turnover of almost all companies increased in 2021 compared to 2020.\u201d Once again, the biggest increases can be found among multinationals with turnover figures above 50 million euros. But smaller companies are also seeing a cautious turnaround in an upward direction.<\/p>\r\n

\"\"Weiss also notices that European companies are working together more often to solve problems in the Netherlands supply chain <\/em>to cope more efficiently. He also sees an increasing number of companies moving their factories from Asia to Europe or choosing suppliers who are already established in Europe. The 'far-Europeanization' of the EMS sector is not only related to the logistical problems surrounding the corona crisis. \u201cCompanies increasingly value corporate social responsibility. If you have products manufactured in Asia, they must be brought to Europe by ship. This contributes to the CO2 footprint. Entrepreneurs and their customers do not want this. The question is no longer whether we move our products to Europe, but how quickly.\u201d<\/p>\r\n

Biggest problems almost over<\/h2>\r\n

Weiss expects that the biggest problems in the supply chain <\/em>will be over by mid-2022. \u201cI have a bright outlook for the future. The demand for electronic equipment continues to increase, but there is more balance between supply and demand.\u201d However, a warning is in order: \u201cThe staff shortage remains a problem for which I see no solution in the short term. As an industry, we also need to think about options to... end of life <\/em>of products, so that we reduce the negative impact on the environment.\u201d<\/p>\r\n

Would you like to meet Dieter Weiss and other experts in your field? Then join it EMS cluster<\/a> of the FHI. If you are not yet a member, you can register sign up here.<\/a><\/p>\r\n

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