The consumer electronics industry is a worldwide multibillion-dollar industry that we all rely on in our everyday personal and work lives. This huge industry is centred on the communication and entertainment industry and has played a key role in our technological and scientific evolution. To put a figure on it, the electronics assembly industry was valued at an estimated $1.3 Trillion in 2015 and is expected to grow to approximately $1.6 Trillion by 2020! Quite a figure!
European Electronics Industry
The European electronics market has experienced hard times in the past 10 years due to economy crisis. However, it has not all been bad news. Taking Spain for example, 2016 saw consumer electronics in Spain record positive results, with growth driven by the recovery of demand in certain categories, particularly digital TVs, which many consumers halted buying during the economic downturn. Products such as smartphones, tablets and laptops have also shown minor improvements.
According to the International Trade Administration (or ITA), Germany is Europe’s largest electronics manufacturing country[pdf]. 60% of Germany’s industry consist of automotive and industrial electronics. France, with the second largest electronics industry in Europe, is a key manufacturer of aeronautics, medical electronics, and telecommunications.
Ireland’s ranking within Europe comes from its strong production of ICT equipment and semiconductor components. Ireland accounts for 20% of Western Europe’s electronic industry with organisations such as Intel, HP, Dell and IBM located in Ireland, largely down to Ireland’s highly skilled work force and low corporation tax.
The emerging Chinese market
China is fast becoming a huge export market for many industries, in particular, the electronics industry. While many European manufacturing plants focus on higher end electronic products, many product components are sourced directly from China. Why China? The answer for many is simple, the cost benefit. It is simply cheaper to source products and parts from China than it is closer to home. The quality is good, delivery times are reasonable and as more and more companies source from there, it is almost becoming the norm, with few trade barriers. Take a typical TransferMate client who is sources Electronic Components – They place the order with their supplier in China, book the USD cost through TransferMate and funds arrive with their supplier the following working day. It really is that quick!
Brexit impact on electronics industry
Britain is in the process of leaving the EU and becoming a single market. Trade deals must be negotiated in order to create a competitive and sustainable UK market, and ensure the importing and exporting of goods to and from Britain. Talks have already begun with President Trump in the US. However, in the outcome that Britain does not secure trade deals with certain European countries and the US, tariffs will be implemented leading to products and services becoming more expensive in the country.
With more and more companies operating and trading overseas, there is an ever-growing demand for international payment services. Managing international payments can be a challenging and time-consuming task. TransferMate offers a vast array of solutions to combat this. We take the complexity out of international payments by providing our clients with a simplified solution that allows them to pay in their own currency to multiple beneficiaries around the world using our mass payment facility. Our API technology allows our clients to integrate our solution into their existing treasury system, creating a more unified process.
Local service on a global scale
TransferMate own and control their entire network of over 200 bank accounts, speeding up international payments whether incoming or outgoing payments. Having full end to end control of our banking network allows us to provide a faster, cheaper and smarter solution, unrivalled amongst our competitors.
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