The Nordic region which is the home to Finland, Norway, Sweden and Denmark among others, is one of the areas featured by the highest quality of life. While the economic prosperity of its residents contributes to such an outstanding position, it also translates into high labour costs, which causes makes many Nordic original equipment manufacturers (OEMs) search for contract electronics manufacturing services (EMS) outside the region.
This article considers outsourcing possibilities for Northern European countries.
Outsourcing electronics production to Asia
Asian countries, China, India and Vietnam in particular, have been among the top EMS providers for decades. Low costs of workforce combined with the industriousness of the citizens of this geographical area and the close proximity to natural resources required for electronics production made Asia very attractive to foreign OEMs.
This trend has been gradually changing. The improvement in working conditions in China and India inevitably brings increase in payment, which makes outsourcing less profitable.
Additionally, the recent world health crisis as well as the war in Ukraine have shown how outside factors can cause serious disruptions in the supply chain. For instance, the COVID-19 pandemic caused delivery and production interruption associated with quarantine measures, whereas the political conflict resulted in the rapid growth of prices for energy resources. The latter made transportation expenses skyrocket.
Advantages of working with Eastern and Central Europe
Outsourcing to Eastern and Central Europe from the Nordic countries can be a sensible solution.
Although manufacturing costs in this part of the world are not thus low as they are in Asia, they are still several times lower than in the Nordic region. Outsourcing to Europe still gives possibilities for saving money, while it also provides OEMs with more control over production due to the closer localisation of EMS and fewer differences in working culture.
At the same time, a shorter delivery route from continental Europe to the Nordic area creates additional possibilities for saving. The free market of the European Union with its simplified commodity and tax regulations is an extra factor promoting greater income.
Finally, Central and Eastern European countries belonging to the EU share a number of equal regulations with Northern Europe. EMS providers operating in this part of the globe widely respect ISO certifications and can easily comply with the quality requirements of Nordic OEMs.
Potential of co-operation with Poland
Poland has particularly auspicious conditions for electronics manufacturing for Nordic companies.
Poland started investing in electronics manufacturing decades ago, supporting both production and educational facilities. It has numerous universities and vocational schools that are constantly improving electronics manufacturing specialisations with a focus on applying knowledge in practice. Many already established and newly developing Polish EMS providers have successfully optimised their production due to the grants from the European Union.
Poland is known for experienced contractors, for example, Assel that has been over 40 years in the industry. Such companies have successfully adopted cutting-edge technologies, quality standards and production methodologies.
Poland’s geographical location is another considerable advantage. The country has access to the Baltic sea, which connects its shores with the Nordic countries as well as efficient logistics infrastructure. Altogether, they are offering quick and reliable transportation methods that are not available in many other countries.
Moving production to Poland
Nordic companies just like enterprises located in other regions have to adapt to the turbulent socio-economic changes affecting the entire world. Although they may appear negative, they can create new possibilities for EMS and result in even higher profits. If you want to learn more about the benefits of working with a Polish contract manufacturer, visit asselms.com.