Manufacturers in CEE Investing in IT – and Their Future
17 Jan 2014
Prague, January 17, 2014 – It has been a rough few years for Central and Eastern European (CEE) manufacturers in the European Union (EU). Companies in the CEE EU member states fared slightly better than their Western European competitors (automotive production soared to record highs in Slovakia), but they have felt the sting of the global financial and euro crises, with production in the Czech Republic, Romania, Hungary, and Poland having all dipped into the negative numbers at some point in the past couple of years.
This has driven home the idea that plants must be upgraded, supply chains integrated better, new business and sourcing models considered, and plant floor visibility improved. IT investments play an essential role in all of these areas. According to recently released spending data from international marketing and research agency IDC, IT investments by manufacturers will be more than 21% higher in 2017 than in 2013 for five core countries (the Czech Republic, Hungary, Poland, Romania, and Slovakia).
The data also reveals:
- Combined IT spending by manufacturers in Poland and the Czech Republic is expected to exceed $2.7 billion in 2013.
- Romania is the most dynamic market, with double-digit IT spending growth expected in 2014 and 2015.
- Already accounting for around 36% of IT spending, the software segment will grow the fastest in the CEE region, with value expected to be 27.7% higher in 2017 than in 2013.
- Automotive will remain one of the more robust industry segments, and the high-tech electronic components and equipment segments will both record IT investment growth at an annual average of more than 7% through 2017.
This chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic are available by clicking here.
"After the almost flat growth of overall IT spending among CEE manufacturers expected in 2013, spending in 2014 will return to more attractive growth rates, fueling the productivity and supply chain resilience of manufacturers in the region," says Martin Kuban, IDC CEMA manufacturing insights analyst. "The slightly higher confidence of consumers resulted in new demand, which will create a better environment for the deployment of IT that boosts competitiveness and can help smooth the rough periods that are likely to return in the future," adds Kuban.
IDC's Central and Eastern Europe Manufacturing Sector 2012 IT Spending and 2013–2017 Forecast
(IDC #EMI10V) provides IT spending data and forecasts for 16 manufacturing segments in five countries (the Czech Republic, Hungary, Poland, Romania, and Slovakia). It is designed to help IT suppliers identify short- and long-term opportunities and manufacturers to assess the state of the market and the implications for regional competition.
For more information, or to learn more about IDC's research into the manufacturing industry in Central and Eastern Europe, please contact Pavla Cincerova (firstname.lastname@example.org, +420 221 423 116). To purchase the data or a related study, please contact Tatiana Hinova (email@example.com, +420 221 423 140).
IDC leads the innovation discussion through events, research, and consulting. For nearly five decades it has been giving IT and business professionals data and insight for making strategic and practical decisions. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Learn more at www.idc.com.
About IDC Manufacturing Insights
IDC Manufacturing Insights is an advisory services and market research firm that closely follows the payer, provider, and life-science segments of the healthcare industry, with special emphasis on developing and employing strategies that leverage IT investments to maximize organizational performance. For more information, please visit www.idc-mi.com, email firstname.lastname@example.org, or call 508-935-4445. Visit the IDC Energy Insights Community at http://idc-insights-community.com/manufacturing.
ContactFor more information, contact:
+420 728 221 169
+420 221 423 116