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How sustainable are the primary financial models in the United States regarding PCB fabrication shops? In this interview with economic experts Shawn DuBravac and Tom Kastner, we explore what’s happening with U.S. printed circuit board shops in today’s market, how consolidation affects the industry, and what can be done.
Marcy LaRont: Shawn and Tom, thank you for joining us today. Tom, in another recent interview, you estimated there are 100 to 120 circuit board shops left in the U.S.
Tom Kastner: Yes, and my number tends to be lower than IPC’s, but I have a different definition of a printed circuit board “shop” because there are so many that are not making boards anymore. It’s difficult to track anyone under $5 million.
Statistically, the number of board shops doesn’t really matter because roughly 90% of production is done by something like the top 50 printed circuit board manufacturers. We see that the bigger shops are getting bigger, for example, the ones like APCT and Summit. There is some organic growth, but much of the growth is due to the acquisition of smaller shops. The bigger shops are more likely to have better equipment and technology to compete with Asia. Overall, that’s good for the industry in the United States.
Nolan Johnson: Tom, if some of those estimated 120 U.S. PCB shops aren't making boards anymore, what are they doing?
Kastner: They are brokering, for example. Any business that has survived for 25 to 30 years under tough conditions can make much more money brokering because they don't have the headaches of CapEx or environmental regulations. They are brokering domestically as well as importing boards, and many of them have gotten into assemblies as well.
To read this entire conversation, which appeared in the April 2024 issue of PCB007 Magazine, click here.
