Strategic Brief: Full Order Books, Empty Shelves – EMS Strategy Group
Why procurement will decide the success of Europe's EMS industry
Following a low point at the end of 2025, Europe's EMS industry is experiencing rising order backlogs and recovering demand for 2026 and 2027. However, while order books are full, material supply remains critical: nearly 38% of surveyed companies rate their supply situation as poor or very poor. Consequently, procurement capability is emerging as the ultimate operational bottleneck.
Author: Dirk Kaussen | Publisher: EMS Strategy Group | Date: October 12, 2026 | Strategic Brief
Key Strategic Insights
- 1. Rebounding Demand vs. Constrained Supply: Although almost three quarters of EMS providers report a good or very good order situation, only 10.9% rate their material supply as good, with zero companies rating it as very good.
- 2. Selective Shortages Across Critical Categories: Pressures are particularly acute in memory products (driven by AI and high-bandwidth memory demand), automotive, power, analog/RF components, and mature-node parts.
- 3. Double-Ordering and Price Growth Risks: Surging order intakes harbor the risk of double-ordering, while a portion of projected revenue growth is likely driven by rising component prices rather than true volume increases.
- 4. Procurement as a Competitive Factor: Delivery capability depends directly on early identification of critical needs, qualification of alternative components, and transparent supply chain management.
How EMS Strategy Group Supports Your Team
- Early risk assessments to safeguard critical material requirements and component availability
- Development and execution of robust dual-sourcing strategies and alternative sourcing channels
- Transparent alignment of forecasts, material planning, and price structures with your EMS partners
- Operational guidance and strategic oversight through to a successful series production ramp-up
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