Visible together, successful together
Author: Dr. Martin Large, CvD all-electronics -electronica was a showcase for the EMS industry – and the new EMS pavilion of the EMS Scout showed on 400 m² how teamwork supposedly 18 smaller companies in a big way. Among other things, we asked what the initiators and Participants were motivated by what the goals were and how they see the shortage of skilled workers.
The EMS industry is an integral part of the electronics industry, and electronica in
Munich is a central platform for the exchange and presentation of new technologies. With the introduction of the EMS Pavilion at the trade fair, the initiators Michael Künsebeck and Matthias Holsten from EMS Scout wanted to offer small and medium-sized EMS companies in particular the opportunity to increase their presence at the trade fair. But where did the idea come from, what are the advantages of such a stand and when is such an initiative successful? That’s what we wanted to know from the creators. According to Michael Künsebeck, the idea of creating a common area for EMS companies arose from the observation that there was a lack of an offer for small and medium-sized companies, which had therefore been underrepresented so far. However, “electronica is the most important trade fair for EMS companies in Europe,” says Holsten. “We wanted to make it possible for small and medium-sized EMS companies in particular to participate in the trade fair through a joint concept,” he adds.
Together with Messe München, they developed the concept of an EMS pavilion called “EMS Area powered by EMS Scout”, which ensured high visibility in Hall A1, which is considered an important exhibitor hall for the industry. The joint stand offered companies a platform to present their services to a broad audience. According to EMS Scout, the advantages of the EMS pavilion over an individual stand were above all the greater visibility and the open character of the pavilion with an area of over 400 m² for the 18 participating companies. In the centre of the stand, there were also retreats for discussions with interested parties and customers as well as a central catering area that was accessible to all participants. In addition, marketing and advertising by Messe München was intensified in order to highlight the common area and spread it widely. The EMS Scout also supported the participating companies in optimising their trade fair appearance. In addition, the initiators took over the coordination at the booth, organized a joint networking party and provided a neutral platform to find out about the industry. All of this allowed exhibitors to focus on their target audiences. In doing so, the companies were able to address various addressees:
In addition to their own existing customers, the companies also had the opportunity to invite their suppliers and exchange ideas with market competitors on a neutral level. An important goal remained the acquisition of new contacts. The high density of potential customers, including buyers, project managers and decision-makers, made electronica the ideal platform to establish existing business relationships
and build new ones.
Different perspectives, common challenges
The initiative comes at a time of a difficult phase in the electronics industry – and EMS service providers are also feeling the effects. Different market conditions and individual challenges are forcing companies to adapt their strategies. Participation in electronica 2024, especially the new EMS pavilion, was a welcome opportunity for many to position themselves better. This is also reflected in the fact that in the run-up to the trade fair, the interest in the EMS area was so great that the maximum number of participants was quickly reached. But how do exhibitors assess the situation, what are their expectations and what are the companies’ plans for the future? We asked: Andreas Weissenborn, Sales Manager EMS at DBK EMS, for example, paints a particularly challenging picture: “At the moment, the situation in the EMS industry is extremely critical, as it is not possible to estimate when the ‘engine’ will finally start up again. Our inventories remain high and put a significant strain on liquidity. In addition, there is increasing regulation, which makes our actions much more complex and cumbersome.” André C. Haiber of Elbe Electronic confirms this assessment: “The majority of the EMS industry is feeling a drop in sales of 10% and significantly more; often even worse in order intake.” It is true that one major customer in particular is significantly below the previous year. Nevertheless, Haiber emphasizes that the company was able to grow against the market trend by acquiring new customers. Patrick Bethke, Head of Sales at micronex, provides several explanations for the bad situation: “Due to the end of the Covid restrictions, our customers reacted overeuphorically, which caused warehouses to fill up. As a result, the order books are very poorly filled this year.
In addition, there are political tensions in world politics, which are causing the market to react cautiously.” Jens Raus, Managing Partner at Ileso, takes a similar line: “The EMS industry is under pressure from high raw material and energy costs as well as dependencies on the Far East.” Stefan Hauf of Coronex Electronic is also critical: “Order intake has declined massively,” and adds as a consequence, “we have to expect reduced capacity utilization as well as possible layoffs.” The burdens of order cancellations and the uncertainty in planning are also a concern for many companies. Alfred and Matthias Lodes of SKP Technik assess the coming development as “restrained” and see the challenge in “opening up new fields of activity.”
Eckhard Oertel of LFG brings an additional perspective: In his opinion, electronics production in Europe is increasingly focused on projects that cannot be relocated to cheaper countries due to safety and technology restrictions. “The protection of know-how and the production of technologically sophisticated prototypes in exclusive quantities play a central role in this,” he explains.
At the same time, there are also positive exceptions. Oliver Barth from SK-tronic emphasizes that his company is “supported by our more than 100 customers from various industrial sectors”
is less affected by fluctuations. GBS Electronic Solutions has also managed to
in a difficult environment. “We strengthened sales and marketing when the order backlog was still high. This is now paying off,” says Managing Director Daniel Frieg.
What are EMS’s plans for the future?
To ensure their competitiveness, EMS companies rely on various strategies, with digitization being a central topic. Alfred and Matthias Lodes from SKP Technik point to the need to assert oneself in the long term with the help of process optimization and AI. In addition, they want to maintain the already existing very intensive customer service by the owners and managing directors. DBK EMS wants to stand out through innovative in-house products and a higher degree of digitalization. SK-tronic strives for closer customer loyalty and invests in modern technologies such as 3D X-ray inspection with computed tomography in order to remain competitive. Ileso’s strategy is also aimed in the same direction. Jens Raus emphasizes: “Digitization and process innovations are the key for us to remain competitive.” In addition to technological investments, the company relies on intensive cooperation with startups in order to be involved in new developments at an early stage.
Shortage of skilled workers: Different levels of concern and approaches to solutions
The shortage of skilled workers is a serious challenge for many EMS service providers – albeit to varying degrees. While Patrick Bethke from micronex reports that the shortage is currently “not hitting them so hard”, he sees the problem in the long term: “Due to an increased average age, especially in production, it is foreseeable that we will have problems.” SKP Technik relies on automation here to reduce its dependence on qualified personnel.
Daniel Frieg from GBS Electronic Solutions emphasizes the importance of simplifying processes through digitization and AI: “It is important to support the employees who are there.” SK-tronic pursues a similar strategy with the establishment of an HR department and active participation in job fairs. André C. Haiber of Elbe Electronic describes the difficulty of attracting attention as a small company. But he counters: “Once you have been perceived as a potential employer, the tasks, the salary package including fringe benefits and the corporate culture are decisive.” Therefore, Elbe Electronic relies on a positive working environment and active sourcing to attract skilled workers. Eckhard Oertel of LFG sees its own training as essential: “We train skilled workers and engineers ourselves, but the number of applicants is declining and the quality of the applicants has deteriorated significantly.” To counteract this, LFG also invests in internal training and flexible resource management. Ileso takes the path of promoting young talent through training programs and internships in order to be prepared for the long term. “We invest specifically in young talent and promote the development of a strong team,” says Jens Raus.
EMS area at electronica: Advantage of shared visibility
Many companies saw their participation in electronica, and especially in the EMS pavilion, as an opportunity to acquire new customers and strengthen their brand presence. Patrick Bethke from micronex explains: “Especially as an SME, you are very invisible on the market. It was important for us to generate visibility.” André C. Haiber from Ebe Electronic also emphasizes the importance of the EMS Pavilion: “From the participation in the trade fair we hoped for professional exchange and many exciting contacts up to concrete prospects/opportunities.” Daniel Frieg from GBS Electronic Solutions expresses a similar view: “The EMS pavilion has given us the opportunity to increase our visibility in the market and to win new customers.” The opportunity to exchange ideas with other EMS service providers is also appreciated: “It was advantageous to get to know your competitors better, which may result in synergies,” says Stefan Hauf, Coronex.
Oliver Barth from SK-tronic also emphasizes that the booth offered a cost-effective opportunity “to present oneself professionally and visibly through a representative booth with support.” Andreas Weissenborn of DBK EMS also saw an important opportunity in the trade fair: “Participating in electronica was an opportunity to increase our visibility and win new customers.” Despite minor differences in individual goals, everyone shared the hope for a new, intensive networking and additional business contacts. The success of the joint stand will be measured afterwards by how satisfied the participating companies were with their participation in the trade fair and what potential for improvement they identify for the future. The EMS Scout is convinced that the EMS Pavilion will remain an important part of electronica and will continue to contribute to strengthening the EMS industry.
