Navigating the Global Materials Supply Chain: A Roundtable Discussion
December 3, 2015 | Andy Shaughnessy, I-Connect007Estimated reading time: 15 minutes
Keuthen: From our perspective as a PCB producer, we are also asked to develop new technologies, of course. That's a completely different point of view on the supply chain then from your end. We are flex-rigid specialists and pioneers in this business from using flex-rigid. For more than 40 years we developed not only flex-rigid itself, but other technologies like semi-bend technologies and bended technologies and yellow flex technologies, as brand names we developed.
For all these technologies we actually need the support, of course, of manufacturers that are helping us out with the materials we need and making the tests we need. It's somewhat difficult sometimes to attract the interest of such a producer to get into these developments if you do not have this massive amount in your bag.
It's getting increasingly difficult for us as a PCB manufacturer to focus on these activities for further development. That's a point of what makes us different when we're talking about high-tech, low-volume, high-mix. We obviously need more development put into these technologies as well and we need to drive this. It was driven out of the U.S., out of Europe, and out of Japan obviously. Mass production is in China, that's clear, but if we do not drive these technologies and get the support of our suppliers, it will get difficult for the future of the activities. That's another challenge for us.
Goodwin: It is a challenge. The way we've designed our business model meets that challenge in some ways because we're interested in supporting the guys developing products in Europe and in the USA. Through our local service centers where we hold inventory, we have lab capabilities as well as most of those services. We have one lab for the U.S., and one lab for Europe. When those products do go to volume, we can support the volume because we're actually manufacturing in Asia and supporting the volume in Asia. We're happy to support the development side of the business.
Shaughnessy: To kind of wrap things up here, why don't each of you share where you see your biggest opportunities are for the future. Let’s start with you, Mark.
Goodwin: You put me right on the spot there. There is still very much a vibrant PCB business outside of Asia, but it's a different business. It's a service business these days. I've been in the laminate business since 1990, when it used to be all about square meters. It's not about square meters for us now, it's about service. We will continue to develop our service model to support our customers.
Keuthen: As a medium-sized PCB manufacturer, the only way to survive and to grow our business actually is to focus on our technologies. It is a high-end, low-volume, high-mix activity that we see out of our customer base in Europe, the U.S., and even when we export to Asia. It is a specific technology that we have to drive. We have to concentrate on flex-rigid and flex activities where we do our best business. Once we focus on that niche we can expand and grow our markets from there. I think that's a point for Schoeller Electronics.
Pattie: For someone who is managing the North American market, we see tremendous growth opportunities—not only because of our business model, which is very unique, but also the type of products that we have. We're heavily invested into the mil/aero and metal core, and we’re investing more and more in the signal integrated materials. We see a very bright future for Ventec in the USA.
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