Electronics output in Western Europe is forecast to decline by 12% in 2009 to €154bn, according to Reed Electronics Research’s annual survey of the West European industry.
"With clearly limited visibility the prospects of a recovery in the second half of 2009 are now fading. Consumer and business confidence remains weak and as the global nature of the downturn intensifies demand in key export markets is also weakening and putting further pressure on revenues and margins," said Reed Electronics Research.
Between 2000 and the end of 2009 electronics output in Western Europe is forecast to fall by 44%, with all countries in the region experiencing significant downturns.
France, Spain and the UK, with their strong telecom and IT bias are expected to see production fall by 51%, 48% and 63%, respectively in local currency. Germany had until the latest downturn been able to withstand the sharp decline due to the country’s dominant position in automotive and industrial products although output is forecast to show double-digit declines in 2009.
Despite the current outlook the long-term future for the electronics industry in Western Europe remains positive.
"As we emerge from the current downturn only a few volume manufacturing plants will remain with companies focused on higher margin products in key sectors such as medical, industrial, aerospace & defence, energy, high-end communications and computing," said Reed Electronics Research.
Yearbook of World Electronics Data 2009 – Volume 1 West Europe provides a strategic assessment of the West European electronics industry. The report is part of a database which has tracked developments in the European and global electronics since 1973 and now provides information on 53 countries.
For further information contact: Anita Caird, Reed Electronics Research