Mil/Aero Leading the Way in 2024

Estimated reading time: 2 minutes

We asked James Hofer, general manager of Accurate Circuit Engineering, to discuss the outlook for his company—and the overall fabrication segment—as we move into 2024. He’s bullish on fabrication, even though he does see a slowdown coming.

How would you describe your economic outlook for the industry and your company's business outlook for 2024? What are you optimistic about, and worried about?

ACE has a big footprint in aerospace and defense; next year, I see that market segment increasing regardless of what the economy does. I feel the economy will slow down but that’s not an entirely bad thing. Prices on raw materials and consumables have skyrocketed in the past couple of years and surcharges are abundant in the industry. I am hopeful that a slowdown will spur the removal of those surcharges. ACE’s second largest customer base is with start-up companies with emerging technologies and, while I foresee a slowdown in this sector, I do not expect it to be significant.

Is inventory management and/or supply chain tying up capital you would otherwise use for capital investment?

ACE has been very proactive with our suppliers in establishing inventories at their facilities in the past few years. We are lucky to have fantastic suppliers we have worked with for years, so they have been very accommodating. ACE has always managed our supply base as partners, and we don’t jump ship to save a few bucks. That partnership and loyalty paid off when shortages were a thing, so we are not tying up cash on supply chain management.

What’s your perspective on buying capital equipment with cash vs. financing?

ACE pays cash for equipment. Even when we finance (which does have its advantages), we only finance what we can pay for out of pocket.

What concerns you more in your growth plans: capabilities, capacity, or competition?

Capabilities always come first and foremost. Capacity is the next challenge. In the current economic situation, finding good team members is a challenge.

How does “going green” factor into your business plan? Is it a cost of doing business (CODB) or a selling point?

ACE has always been concerned with being as green as possible. I consider it neither a CODB nor a selling point but more of a responsibility. We all have families and I am sure I speak for all of us when I say that we want our grandchildren’s grandchildren to enjoy a walk in the park as much as we do—without a respirator.

Which process technologies hold the most opportunity for growth in the industry in 2024?

We are very interested in how AI will integrate into our processing. We are also very interested in watching the evolution of additive technologies.

This conversation appeared in the December 2023 issue of PCB007 Magazine.