Danish electronics can compete with Asia

Danish producers of electronics can compete with Asia on quality, product and development and price

The outsourcing trend is slowly coming to a halt, as Danish producers of electronic equipment can compete with Asian producers, reports Ingeniøren.dk

With expenses increasing in Asia, notably in China, Danish companies is able to challenge foreign producers on product development, quality and price.

- Costs in Asia have increased. The incentive for outsourcing to Asia, in regards to salary and logistics, has somewhat changed, argues CEO of Necas, Ib Gosmer.

- We have acquired new customers, who acknowledge that it has become almost as expensive to produce in Asia as in Denmark, and given these circumstances they prefer to locate their activities here, adds Michael Ravn, from ETK EMS.

Tom Togsverd, Director for the branch organisation ITEK, recognizes this.

Companies also emphasise that it is not just a matter of production price.

- It is not only about the naked production price. If you send a production to Asia, you have a longer delivery time and increased uncertainty. It is the entire value chain you modify, says Michal Ravn.

In November 2011, ETK EMS took over the management of Zoma Electronics’ production sites in Thailand and Frederikssund.