Solder and anode specialist Balver Zinn of Balve, Germany, has showcased their range of solder paste, solder fluxes and related products at Productronica. In this interview Paul Salmon, Business Development Manager, Balver Zinn, talks to EPP Europe about current trends and challenges.
What technical challenges or issues are driving the development of the European electronics industry?
Well, we still have our BO, ODM and OEMs in Europe. The marketing, branding, R&D and design also remains in Europe, whilst the manufacture of consumer goods has, in the main, gone East. However, there are rumblings that this might not, in all cases, have been the best strategy and we are now seeing indications that some companies are returning from China and locating in the belt that surrounds the EU core.
The issue of raw materials costs, driven by scarcity and the present weakness of the dollar, will inevitably have an impact on consumption. The implementation of lead-free, of course, has had an uncomfortable knock on effect in the requirements of working capital for some solder producers. In the longer term the cost of the solder may well drive innovation for alternative bonding techniques.
Which regions of Europe do you expect the greatest growth from?
It is expected that the balance between Western Europe and Eastern Europe will be 45/55 in favour of the East. Poland, for example, is already the largest manufacturer of flat screen televisions, followed very closely by Turkey.
Can Europe compete with Asia, and if so in which way?
This is a difficult question to answer because China’s internal market is so huge. Perhaps we only see the direct impacts in prices for goods sold here. I believe the competition will focus on short run, high added value and difficult to manufacture items.
What are the biggest challenges and opportunities for European electronics manufacturers for the coming year?
I believe one of the biggest challenges will be keeping the emphasis on innovation and R&D, which is of course difficult with the importance put on maintaining return on investment. Other challenges I see facing European electronics manufacturers include security of supply and credit and of course maintaining the order book.
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