Juan Arango on Koh Young’s New U.S. Headquarters

Estimated reading time: 8 minutes

Shaughnessy: So, what exactly is going to happen in this facility?

Arango: This facility is all about elevating the user experience with dedicated training rooms plus state-of-the-art demonstration and application testing facilities that highlight smart factory solutions. In the past, our training and demonstrations were in just one room. So, if we were holding a training class, a demonstration would disrupt the class.

Now, we multiple training rooms with dedicated equipment. As such, students have a dedicated classroom and resources to ensure the highest level of training retention. Plus, we can hold multiple training sessions simultaneously. We want to react in real time with what our customers need, and I have engineers in the facility dedicated just for that. We’re not a machine-selling company; we’re a solutions provider. So, if I have a solution for you and it meets your ROI, then it’s a no-brainer. You don’t want to buy a box; you want to buy something that fixes a headache, and that’s our focus.

Shaughnessy: Will the machines be built here?

Arango: No, our production will remain in Korea, but Dr. Koh has allowed us to carry more than 100 machines in inventory. If you need a machine tomorrow, there’s a good chance I have one. This has been good because one of the biggest things with the economic uncertainty is that customers wait until the last moment to give you a purchase order. If I order the machine only when we get that PO, the customer is looking at four to six weeks until delivery. While it’s only a two- to three-week build cycle, it takes another three weeks to transport the machines.

Now, we have 100 machines in our warehouse, so you can have it tomorrow. One of the processes we have improved, and one that Dr. Koh endorses, is “pre-ordering.” If a manufacturer says, “This is what I need and when, but I can’t get you to the PO until later,” I say, “no problem.” Our machine configurations are relatively standard; if a machine arrives and the customer project fell through, we are confident it will go to somebody else.

Shaughnessy: Or you could take it to a show, right?

Arango: If you attend productronica or ICP APEX EXPO, our competitors take, at best, three machines. We had 16 machines at IPC APEX EXPO last year between our booth and our partner booths. In the United States, we have partners that use our machines, such as our reps and mounter partners. Fuji, Panasonic, and Universal are just some of the partners that have our machines. We’ve used those partner spaces for training and demos, and one thing we’re considering is putting a mounter in our demo room. I’m working with several partner companies to find the best fit.

Shaughnessy: So, it worked out that you were already here in Atlanta.

Arango: I’m very proud of the space. I think it’s a value-add to our customers to understand that we can give them more now.

Shaughnessy: How big is this space?

Arango: We have over 11,000 square feet total, which includes a 2,000-square-foot warehouse; the rest is all focused on elevating the user experience with training rooms and our demonstration center. The way we say it is “we’re bigger than most mounter companies.” Our demo room has 10 machines in there right now, plus our training machines; by comparison, Arizona had 6,500 square feet.

Shaughnessy: And Georgia seems to be a pretty central location for customers?

Arango: For us, it is. A lot of our customers drive to our office, but with the Atlanta airport nearby, it’s also easier for some to take direct flights. When going to Arizona, it took one day to get there and one day to get back. It has worked out. I’m happy that I was able to earn the trust of Dr. Koh.

Shaughnessy: Is he the original founder?

Arango: The name Koh Young comes from “Dr. Koh” and “Young” because he wants to work with fresh ideas and young people.

Shaughnessy: We’ve hired some young people, and it is great. People say some negative stuff about younger people these days, but if you hire the right ones, they’re on fire.

Arango: Yes. Back when I was earning my MBA, I was studying at the kitchen table, and my high school son saw me. He asked what I was working on, and I said I was studying for a test tomorrow. He responded, “Good. We don’t accept Bs in this house (laughs).” And one joke at work is that [Koh Young Americas Director of Sales] Joel Scutchfield and I are a little older, so a younger guy from Korea gave us nicknames: I’m D1, and Joel is D2, meaning “Dinosaur 1” and “Dinosaur 2” (laughs).

Shaughnessy: I’ve told some younger people that they could cross the street and double their pay in San Jose, and they’re surprised after having grown up around the recession. But now, things are going better in the U.S. with only 3.7% unemployment.

Arango: We had a hard time finding an office assistant. We must have gone through a couple hundred resumes and interviews. As a market leader, we’re looking for the cream of the cream for every position.

Shaughnessy: And they’re out there.

Arango: Right; they may just be a little harder to find, and it may cost more to find and keep them, but it’s worth it.

Shaughnessy: Juan, thanks again for having me today.

Arango: Thank you for coming.

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