By Dieter Weiss, In4ma
Today we want to give you some updates on Sweden.
We are still not completely finished with the data analysis for this country, but at least we can give you information about 84% of the revenues, which covers more or less all the big players in this market. Sweden manufactured 2.7% of all European EMS revenues in 2017. There are 78 EMS providers in Sweden, of which four companies have revenues of more than 50 Mil. Euros and 21 have revenues between 10 and 50 Mil. Euros. The remaining 53 companies, all less than 10 Mil. Euros in revenues, have a share of the Swedish EMS production of just 16%.
The big five in Sweden are:
- Enics Sweden AB
- Orbit One AB
- Scanfil AB
- Kitron AB
- Hörberg Petersson Tronic AB
These big five have nearly 42% of all EMS revenues in Sweden. In 2017 they grew by only 3.6%, mainly due to the decline of Enics revenues by 6%.
The 25 companies with more than 10 Mil. Euro hold 84% of the revenues and grew by 6.9%, which means as well, the medium sized companies between 10 and 50 Mil. Euros grew in average more than the big ones. No real number for all of Sweden is available as of now, but from experience, the smaller EMS, which have not been analyzed so far, grow less than the big ones. So we expect to final growth rate for Sweden in 2017 to be between 5.1 and 5.5%.
The biggest surprise came from the results before tax (“resultat före skatt” in Swedish). Profits of the 25 companies analyzed so far declined by 25% and 23% of these companies reported losses, even the biggest player. Personnel costs are still putting pressure on the EMS companies. The lesson to be learned from this, revenue growth is not the key to success. Sweden might look at Norway, which solved a couple of problems by transferring orders to the Baltic States or denying to accept orders below cost. Norway reduced their revenues in 2017 by 12.8% but the amount of companies with losses reduced from 10 in 2016 to 3 in 2017.
The next European report on the EMS Industry will be published end of the year. It contains no fake news, no funny statistical extrapolations, just real numbers. For more information visit www.in4ma.de