VIDEOTON is celebrating 30 years of experience in production
The new VIDEOTON started operation with 6,000 people in 1992 and achieved a total income of approximately HUF 8 billion in its first full business year. Thirty years later, the group employs a total of 8,500 people with 21 subsidiaries on 11 sites (one in Bulgaria and one in Serbia), and its gross income in 2020 was close to 200 billion HUF. The company is the 4th largest EMS based in Europe.
On the one hand, the aforementioned figures show good illustration of the progress VIDEOTON has made over the past three decades - but the growth has certainly not been constant. The success of VIDEOTON is based on the ability of renewal and the continuous and flexible adaptation to market conditions and expectations.
The development of the company group can be divided into three stages. The first period of these - which lasted until the end of the 90’s - is marked by an activity called classic subcontracting. In this decade, labor-intensive projects based on technology defined by partners were the main sources of revenue. The momentum was broken in 2000: as a result of the outstanding increase in the minimum wage, projects giving work to a large number of employees left VIDEOTON (and also Hungary).
The second phase lasted from the turn of the millennium to the end of the decade: this can be seen as the beginning of true contract manufacturing. VIDEOTON's customer base had been changed: audio and other consumer goods had been replaced by automotive and home appliance companies with European headquarters, and by industrial electronics manufacturers towards the end of the decade. This period of intense development was characterized by the need to develop full-fledged manufacturing competence, which already assumed its own raw materials, technology and engineering activities, and significantly increased its added value.
The start of the third major phase was the 2008-2009 financial crisis. VIDEOTON sustained the economic crisis much better than its competitors and was able to renew again. The company group gained its current image in this time, and the current company structure was formed. Since 2010, collaboration with customers in product design, ensuring product manufacturability, and optimization have been an expectation, and automation has been the focus, mainly due to lack of labor, rising wages, and high quality expectations.
After the stagnation caused by the crisis of 2008-9 - thanks to the multi-billion Forint technology expansion and the excellent financial stability - the group has started to rise again, reaching a new record income every year. There is further growth potential if deliveries within the region (Europe) become more valuable due to lower risk and predictability as a lesson from global supply chain problems and trade wars.
Recently, VIDEOTON has already seen the success of a new element in our strategy that has been invented a few years back: VIDEOTON has become a partner of newer, small and medium-sized innovative companies, mainly from Western Europe, in addition to its previous cooperation almost exclusively with the largest multinational groups. This means a faster pace, more frequent changes, but also deeper connections and relation to pioneering products. Areas of rapid growth such as battery technology, electric car components, smart homes and home networks are playing an increasingly important role in the portfolio.
Thanks to standing on many legs, the crisis caused by the coronavirus pandemic - at the group level – wasn’t a setback for VIDEOTON so far.
The company group employs many colleagues who were already with the company at the birth of modern VIDEOTON, and it is very common for families of the employees to be attached to the company for generations. Of course, the company is also open to young talents: VIDEOTON has been participating in university dual training programs for years, and the proportion of skilled workers, engineers and other graduates has started to grow dynamically over the past decade.
As one of Hungary's leading industrial groups, VIDEOTON also strives to set a good example in terms of corporate social responsibility.
The health and social support of the settlements hosting the company group was a regular practice in the life of VIDEOTON even before the coronavirus pandemic, as well as the pursuit of a more environmentally friendly operation. Green developments have been ongoing in recent decades, and in 2019 VIDEOTON’s own solar power plant was handed over.
The VIDEOTON Group is firmly in the top 5 of Europe-based electronics contract manufacturers year after year, and although the world has changed and become unpredictable, VIDEOTON's responsiveness and dynamism is a competitive advantage that we can rely on for the future.