Due to the coronavirus pandemic, there was a significant market slump at the start of 2020, including for the EMS industry. Although some companies recovered slightly from the third quarter onwards, initial evaluations show that the EMS production volume in Germany fell by over 8%, in Austria it is even over 9% and in Switzerland it is only down just under 2% due to special effects from two larger manufacturers.

At least 6 EMS companies filed for insolvency in 2020, 5 of which have now been completely closed and wound up, another company (Leesys) was bought by a large EMS group (Katek) and is to be integrated into the Katek Group after the closing.

Different developments are also emerging in Europe. While the Scandinavians have recorded an increase due to their low share of deliveries to the automotive sector, France, Italy and the UK have suffered greatly in some cases.

The end of the problems is not yet in sight, as there are still some “sick” EMS companies due to the possibility of delayed insolvency filings.