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Chris Nuttall Discusses NCAB Group's IPO and Future Plans
December 31, 2018 | Nolan Johnson, I-Connect007Estimated reading time: 9 minutes
Nuttall: It appears that tariffs are coming. We’ve discussed increasing our prices, but it's not as simple as that. We have a tariff that is being added that's out of our control. Many customers are open to it and accept it. They're seeing tariffs on products that they're bringing in. We still see some customers that are trying to close their ears to it, but it seems that it's on the horizon and getting closer.
We have robust logistics channels, a strong team, and allocated resources in each particular office, so we can find ways to work around it. Some of the smaller companies will have to pay the potential tariffs before they sell the product, which is going to hurt the industry. Thankfully, we're large enough that we can weather some of the storms, but we'll feel a pinch.
Materials, lead times, and components, are impacting us in a way—they are and they aren’t. We're still seeing a buoyant market. There are a couple barometers that seem to be pointing hot and cold. However, we've had a reasonable couple of months. Where we see challenges is when we want boards quickly. Thus, we have a demand for orders to be shipped out as soon as the components arrive—almost immediately. We have to continue to be agile, flexible, and do what we can to support the customer.
Are we seeing customers push out orders? Not so much. We’re in a stage now where the component issues have been around for a long time. People are working around them and managing their order books accordingly. It’s painful, but we're working around it.
Johnson: That relates to our final item. You started providing a forward-looking industry report, this year, correct?
Nuttall: Yes, it's a market watch. This is something we've done for a few years. We do it twice a year. We look at a number of barometers, including the PCB outlook, global indexes and forecasts, material and semiconductor trends, economic factors, and what's influencing the current year. Then, we try to map them against what's happening and figure out how to predict the next year. Mapping these pieces of the jigsaw puzzle together provides an indication. For example, in 2018, we know that the global industry's going to grow 3.8%, but moving out over the next couple of years, it's going to slow down to 3.2%, but that's still growth. China is where we see the most significant growth—approximately 3.8%—and that's not surprising because over 50% of the global market is there. However, other areas are going to slow down a little bit for sure.
Johnson: As I understand it, do you use as an internal tool and share it with your customers?
Nuttall: Yes, we share it with our customers. It gives them insight into the electronics industry and hopefully helps them in their businesses and provides interesting reading. There doesn't seem to be a single source that makes any projections—positive or negative—that covers all of these factors.
Johnson: This is another value-add to your customer base.
Nuttall: Definitely. In most cases, we're pretty positive or correct in our outlook.
Johnson: What’s the best way for someone to contact you about fabrication services, accessing your report, or anything else?
Nuttall: Look at our website or contact our local office. We'd be delighted to engage with on whatever you need.
Johnson: Thanks for your time. It has been great to speak with you.
Nuttall: My pleasure.
Page 2 of 2Suggested Items
I-Connect007 Editor's Choice: Five Must-Reads for the Week
09/06/2024 | Nolan Johnson, I-Connect007This week’s Top 5 starts with steps you can take to cultivate a culture of thriving. We also have bullish news from the global semiconductor sector, advice on how to tease out hidden cost drivers during the PCB design cycle, how the Altium-Ansys collaboration will affect design, and Happy Holden’s version of Occam’s Razor—three simple tools to keep your wet processes in line.
Impact of the Altium-Ansys Partnership on PCB Design
09/05/2024 | Josh Moore, AltiumThere’s a saying in electronics hardware design: “There are two types of electronics designers: those who have signal integrity problems and those who will.” This adage emphasizes the inevitability of encountering and the need to address signal integrity (SI) and power integrity (PI) issues.
Hidden Cost Drivers in PCB Design
09/05/2024 | Cherie Litson, CID+, Litson1 ConsultingI recently taught a CID+ course, and if you’ve ever taken a CID or CID+ course, you know that we discuss cost adders quite a bit. When I asked the class of 15 design engineers their ideas on the biggest cost adders, the first and strongest response: the project manager. Are you surprised by their answer? After over 40 years in the industry, I wasn’t. If you step back and look at the process of product development, you’ll see that many decisions that affect costs down the line really do take root with the project manager.
Altium, Mouser Team Up to Advance Electronics Education and Careers Worldwide
09/05/2024 | AltiumAltium LLC, a global leader in software and solutions for the electronics industry, and Mouser Electronics, a global authorized distributor of semiconductors and electronic components, are excited to announce a strategic partnership aimed at advancing electronics education and careers worldwide.
Young Professionals Spotlight: Process Engineer Kevin Dial, American Standard Circuits
09/05/2024 | Dan Beaulieu, D.B. Management GroupWhen I heard that my friends at American Standard Circuits had hired a new, fresh-out-of-college process engineer, I was anxious to meet him. Now, you get to read this interview. It’s a rare perspective of a young man new to our industry.