Modest Growth for Western Europe Electronics Industry

Oxford, UK, February 2007

ELECTRONICS INDUSTRY SPECIALISTS REED ELECTRONICS RESEARCH FORECASTS MODEST GROWTH FOR THE WESTERN EUROPEAN ELECTRONICS INDUSTRY

The outlook for the Western European electronics industry is cautiously optimistic. Reed Electronics Research’s latest publication turns the microscope on the West European electronics industry in all its forms. It assesses the state of the industry now, and forecasts future developments, giving readers an unparalleled insight into the implications for their industry and opportunities for expansion.

Reed Electronics Research (RER) has been systematically researching and collating data relating to the worldwide electronics industry for over 30 years. The latest edition of their invaluable Yearbook of World Electronic Data ( West Europe ) has just been published and as, ever, is an essential resource for anyone with a professional interest in the developing electronics market.

This, the 34 th edition of The Yearbook Of World Electronics Data predicts modest growth for the European electronics industry in the face of continuing competition from ‘lower cost’ countries. Production in West Europe increased by 1.3% in 2005 and looks set to continue growing (albeit modestly) through 2006 and into 2007.

Key Findings

Accounting for 17% of world electronics production and around 22% of the market, West Europe is still a significant source of investment and opportunity, even in the face of increasing competition from lower cost countries (particularly China .) The rate of decline that saw output in France and the UK fall by 40% and 55% respectively in the period 2000 – 2005 is now slowing. While this may not signal immediate growth, it does suggest better prospects in the medium term.

Germany ’s perennially strong automotive and industrial sectors blanketed them from the worst effects of the decline. Despite falling by 16% in the period 2000 to 2002, production subsequently increased over the three years to 2005; a trend which looks set to continue into 2007. However, growth is expected to ease from 6.2% in 2004 to around 2% in 2007.

Elsewhere, Italy has rallied in spite of poor performance in recent years and maintains its position as the fourth largest electronics market in West Europe ; a position it reclaimed from Ireland . In the period to 2007 Italy is expected to enjoy further growth prompted by the investment in increased TV capacity. Ireland should enjoy growth in their key computing and semiconductor sectors, bolstered by the continuing emergence of the medical sector.

In terms of key products and markets across Western Europe , communications has continued to dominate in the period up to 2005. (It is a big part of both the UK and French markets particularly.) Despite dropping 3% of its share of the overall total, the communications sector leads the way with 28%. The industrial sector has seen the most significant gain, (rising from 18% in 200 to 24% in 2005).

NOTES

Reed Electronics Research is a part of the Reed Electronics Group (one of the largest providers of information on the electronics industry worldwide).

Reed Electronics Research has been researching, compiling and publishing The Yearbook Of Electronics Data since 1973. Volume 1 covers trade and production statistics for the Western European electronics sector, covering sixteen countries. Volume 2 focuses on USA , Japan and Asia Pacific; Volume 3 is concerned with the emerging markets (including China , Vietnam , Mexico and Turkey ) and Volume 4 turns its attention to Eastern Europe (including Russia , Poland and the Czech Republic ). In its entirety The Yearbook series forms an exhaustive reference to the entire world of electronics production across four volumes.

Further information on The Yearbook Of Electronics Data and other specialist RER publications may be obtained from the Reed Electronics Research website:

www.rer.co.uk

You may also contact Research Consultant Andrew Fletcher at:

andrew.fletcher@rer.co.uk