EMS@C-LEVEL
As Forbes, Entrepreneur, Fast Company and SCOOP writer, Philip Stoten, continues to talk to EMS (Electronic Manufacturing Services) executives he learns more about their individual and collective experiences and their expectations for their own businesses and for the entire electronic manufacturing industry.
EMS@C-LEVEL
Yes We Can, Yes We Must: How Europe Can Reclaim Its Competitive Edge with Koh Young's Harald Eppinger
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
The landscape of European manufacturing is undergoing a profound transformation, caught between geopolitical tensions, shifting economic priorities, and technological disruption. Harald Eppinger of Koh Young offers a candid assessment of where Europe stands and what's needed to revitalize its industrial leadership.
"We are competitive in technology, we have the right people in charge," Eppinger asserts, highlighting that Europe's challenges stem not from capability but from hesitation. This wake-up call comes at a critical moment as defense spending increases dramatically across the continent, creating substantial opportunities in communications technology, satellite systems, and aerospace development.
Regional variations tell a nuanced story – the UK has "recovered wisely" post-Brexit, while Scandinavia maintains its traditional strength. Central Europe faces greater challenges, with many potential projects stuck in the "what if" phase of planning. The solution, Eppinger suggests, lies in collaborative partnerships that leverage each vendor's strengths while presenting unified solutions to customers. This shift from isolated competition to strategic collaboration fundamentally changes how manufacturing operates.
For manufacturing leaders looking to navigate this changing landscape, the message is clear: competitiveness requires collaboration, data exchange, and process visualization. Those who embrace these principles stand ready to benefit as European manufacturing potentially rebounds in 2025.
EMS@C-Level Live at APEX is sponsored by global inspection leaders Koh Young (https://www.kohyoung.com) and Creative Electron (https://creativeelectron.com)
EMS@C-Level is hosted by global inspection leaders Koh Young (https://www.kohyoung.com) and Global Electronics Association (https://www.electronics.org)
You can see video versions of all of the EMS@C-Level pods on our YouTube playlist.
Europe's Economic Landscape
Philip StotenHello , I'm Philip Stoughton , I'm at Apex 2025 and I'm on the Coyoung booth , and I'm joined by Harold Eppinger , who takes care of Europe . I take care of .
Harald Eppinger, Koh Young EuropeEurope . I would love to take care of .
Philip StotenEurope . Well , we're going to talk a little bit about that . I think , when I look at and we spoke briefly at Electronica and it feels like such a long time ago because we've got the new president in office here , we've got tariffs , we've got all kinds of back and forth , we've got all kinds of back and forth with the Ukraine situation . Now we've had the results of the German election , we've seen new budgets with debt ceilings lifted . I think they're talking about half a trillion dollars spent on , or half a trillion euros on , infrastructure , half a trillion on defense . Wow , everything's so different .
Philip StotenYeah everything is different . Expected no , I would just like to raise it , Wow everything's so different .
Harald Eppinger, Koh Young EuropeYeah , everything is different . Expected no , I would just like to raise it unpredictable from November on , and I think this is something we really hope now that there's a kind of settle up of what to do .
Harald Eppinger, Koh Young EuropeEverybody's waiting . There was a big move over the years in direction of e-mobility and sustainability . From one day to the other day it was changed and that's why the industry suffered so strongly . It's unpredictable and we hope that with a new government in charge and the money which goes into the market , we can really recover and bring back , let me say , the European , but also especially the German industry back to the leader role , what we had before , and I think we have some events upcoming now and some of the keynotes and the topic is really Europe . Yes , we can , yeah , and yes we
Yes We Can, Yes We Must
Harald Eppinger, Koh Young Europe, want . Yeah . I think the second part of this yes , we can .
Philip StotenYeah and yes , we won't . Yeah , I think the second part of that . Yes , we must .
Harald Eppinger, Koh Young EuropeLet me say I think I hope that we must is clear for everybody . But we can . We know that we can do it , but we are shy and this is something it's like a wake up situation for the industry , because it's no need to give it some other places . We are competitive in technology , we have the right people in charge . Labor shortage is everywhere . Baby boomer is facing out All these kind of things , but it's getting used to . So it should be the turnaround and we have to go forward .
Philip StotenDo you see any particular factors as providing real impetus
Defense Spending and AI Development
Philip Stoten? I think a lot of people are talking about the additional defense spending , which is really substantial . When you talk about going from 2% to 3% that's a 50% increase in terms of Let me say you don't have to think about the 2% to 3% .
Harald Eppinger, Koh Young EuropeThe actual need which is expended is unbelievable big money . You see the value on the stock exchange of all the defense companies and we see also , of course , a need in the only really investing areas is around communication , special communication , satellite communication and , of course , aerospace and military .
Philip StotenWhat about the AI infrastructure ? Is that something that is having a positive effect here and not so much in Europe ?
Harald Eppinger, Koh Young EuropeNo , everybody is talking about . Everybody is a super lead in AI and I think it's still in the early stage and I would not say that everybody is really the top leader . There are some people ahead in certain areas , but I believe it will change and help a lot to build up the next generation of electronics and from the manufacturing point , from the utilization of electronics in our daily life , and that's what we see . If you're longer in this business , you have always these up and downs and it's not the first crisis .
Philip StotenWe have an underlying trend . That's pretty .
Harald Eppinger, Koh Young EuropeYeah , and I think the flatten was . I would say it was homemade , it was just the situation not handled proper . But we are not in charge in this kind of business . But we can contribute as vendors and users to support the people to believe in their capabilities and use that to support the people to believe in their capabilities . And I would say Europe is still super competitive in the world market . It doesn't matter if it's software , hardware
Europe's Competitive Position
Harald Eppinger, Koh Young Europeor innovation . But coming back to the point , yes , let's do it and let's take the initiative , and I think this is now . We must act in the right direction and we cannot wait that until the tariff wars are sorted out .
Harald Eppinger, Koh Young EuropeI just recently heard a nice study that so many companies from Germany I would not mention the number , but invested in producing in Mexico . So we don't have to wait until the taxes are applied to Europe , because the impact of German companies producing in Mexico for the US market is already given and this is where it has already started the process . And if we believe in ourselves , I think the whole industry can recover quite quickly . But it will take a moment . I think 25 can be the change .
Philip StotenYeah , I think so , and I think what's been going on politically and economically may just give Europe the wake-up call and the impetus to get on and do stuff . We talked a lot about Germany . What do you see going on elsewhere in Europe ? The
Regional Market Recovery Trends
Philip StotenUK seems to be doing surprisingly well post-Brexit . The UK seems to be doing surprisingly well post Brexit . That seems to be quite a good market .
Harald Eppinger, Koh Young EuropeI can confirm North UK really recovered wisely , I would have to say , because we all know that it was . What was an impact after the Brexit . We see areas in the south and east . I think the central area was a little bit weak to the political challenges . It's not that it's full dead .
Harald Eppinger, Koh Young EuropeIt's just not at that level you would like to have and would like to be promising . We see also a trend that the requests are increasing and there is kind of what we can do if . And this moment of what is the if who decides ?
Philip Stotenhow do we push that in line ?
Harald Eppinger, Koh Young EuropeHow is about the lead time ? How is this ? How is that you have the feeling that tomorrow everybody ? Oh , let's go .
Philip StotenLet's go , yeah , Cross fingers , let's hope , yeah . What's the event that does that ? That's interesting . Is it Scandinavia still going well for you ? Yeah ? I think it's been a strong market heavily elsewhere .
Harald Eppinger, Koh Young EuropeIt has been a strong market and it's coming back , not in that era , because you have to see , in every high developed area the industry is moving a little bit out yeah let me say we have to say low labor or or , uh , maybe also the willingness to work this is a little bit the culture driven issue .
Philip StotenBut yeah , I think there are areas which are recovered , restarted and and , and , and taking taking action yeah , yeah , and that one of the things I really like and you talked to me off camera before we started about this initiative to promote European manufacturing
Partnership and Collaboration Benefits
Philip Stoten. One of the things you seem to be really good at there is this collaboration partnering up with big other players like maybe Asset other companies that are in the space market leaders In 24 , we had already the topic around partnerships .
Harald Eppinger, Koh Young EuropeThe idea is very simple . Every vendor has a benefit in one of his products and I have to say , total line solution is not that common in Europe . So the people try to select the best out of the portfolio and , based on this , you can only win if you work together . We realized with Hermes and CFX that communication is key . With our tools KPO communication between the machines and process improvement it gives us an additional value . But the most important thing is if there's a customer from us and let me say you have to talk to so many different vendors and it's burning resources anyway limited resources . So if you create a partnership that the partners talk to each other and talk to each other on eye level , they can unify the messaging to our customers . And I think this is one of the biggest learnings over the last years that the moment these people talk together and exchange , it's a win-win and it's a win-win for the customer .
Harald Eppinger, Koh Young EuropeOf course it's a win for us if we can get a deal , but the deal is not sustainable .
Philip StotenIt's kind of wedding . It's the partnership for the years to develop the marriage .
Harald Eppinger, Koh Young EuropeAnd I said look and in the past you have been in one of the presentations last year I take a picture from a firefighter and we said look , that was our job for ages , but with all the tools and the partners it's like a guy in the orchestra sitting in front and you just do the and our Qsmart and the data visualization is helping .
Harald Eppinger, Koh Young EuropeIt's like the script yeah , so it's not longer be active with everyone , and I think this is what we have to understand that at the end , it's about qualification , utilization of qualified labor , and this is the limitation
Visualization and Competitiveness
Harald Eppinger, Koh Young Europecurrently . It's the next generation doesn't have the same willingness to work in a factory , and so we need to compensate . It's the only possible partnership if we exchange data and , as we said , process visualization , process improvement . It's the key to be competitive and it doesn't matter if it's Europe , america . Competitiveness is key .
Philip StotenYeah , competitive and collaborative . When you look at all these things , like the challenges , collaboration is essential . If we're going to make AI work , it's got to work on every machine in the line . Every AI has got to communicate so that collaboration becomes important . Harold , always a pleasure to chat , great to get an insight on what's going on on your side of the pond . We'll chat again soon , thank you , thank you .