EMS sector expects ‘rough ride’

The UK’s electronic manufacturing services (EMS) sector is expecting a rough ride going into Q2 of 2009, according to a survey conducted by trade association Intellect.

Half of those companies were questioned said their confidence in the markets for the next quarter was either ‘diminished considerably (6%)’ or ‘diminished (44%)’. Henry Parker, Intellect’s technology markets programme manager, commented: “The UK EMS sector is well set up to ride out the current recession, having already seen out a period between 2000 and 2006 when production of electronics in the UK fell by 50%. Most key players are cash rich and relatively free of debt. However, some of their customers – especially the small ones – are not. They are behaving in an increasingly conservative manner and it is this unpredictable behaviour that is causing worries and lowering future confidence in the markets.”