IEC: Celebrating 50 Years in Business

Estimated reading time: 11 minutes

Stone: Relationship management is critical of course, but you have to have the product line and you have to have the ability to service it, and nobody else in North America can provide that level of technical support and service. We're using the same model that we used to capture PTH and dryfilm share in order to capture laminate market share.

Matties: To say nobody else can do that is a pretty bold statement. I know what you mean, that you're creating something, but you have formidable competitors out there as well.

Stone: We do, but I think if you look at the way we can technically service and support our customers, it's unique. We've really carved out a nice niche for ourselves.

Matties: The thing that really stuck in my mind about your approach is that you're focusing on one customer at a time.

Stone: That's how we're going to win, because you're right, we do have formidable competitors, and we don't take them for granted.

Matties: With laminate obviously that's a major win if you land those accounts. How long of a cycle do you think it takes to bring a new customer on for that product line?

Stone: That's a very good question. Surprisingly enough I think that you have to be very patient, more patient than we all like to be in this industry. The sales cycle can vary from 3 months to 12 months or longer, depending on how motivated the customer is. We just feel that in ITEQ's case they're manufacturing a superior product which is a huge advantage in this market.

Matties: I see that they have something like $100 million in capital, a couple of thousand employees, and five manufacturing facilities. It's not a lightweight competitor by any means.

Stone: They're fourth or fifth in terms of worldwide share and growing. We're really happy and proud to be lined up with ITEQ.

Matties: One of the things that we like to do at I-Connect007 is conduct surveys regarding the process, generally speaking. One area that constantly comes under evaluation is plating, and we hear a lot about the challenges in plating as one of the largest areas with the most room for error, if you will, in the manufacturing process. Obviously this is a big area in your business. What do you see in the plating departments? Why is it such a challenge for people?

Stone: There are so many different dynamics in the process chemistries within the shops. The technology is ramping up, the geometries continue to shrink, and there are physical limitations both mechanically and chemical. For the foreseeable future this will continue to be arguably the most difficult area in a board shop to manage.

Matties: When you look at manufacturing from a systems-based point of view, plating is the area that we hear so much concern over, and that leads me to 3D printing or printed electronics. What do you see in the future? It looks like that's a viable path for people to lay traces down.

Stone: I think you're right. That's something that we're following closely. We've got our hands full for the next two to three years with ITEQ and other projects we are working on. Yes, we're watching the printed electronics market closely, some of our existing suppliers are in that business, and obviously we’re watching what our competitors are doing.

Future wise we're bringing on a line of liquid photoimageable solder mask from China from a company called ABQ. We've been given exclusive rights to sell that product line in North America, so that will be another important piece for us in terms of growing our business. So these kinds of strategic alliances are key for us. Another example is we worked out arrangements with ECEMS and Tritek. They're both fellow Dow distributors, and they're working with us in the Midwest, East Coast and southern California where we don't currently have a footprint.

Our business platform, Barry, moving forward, is going to be a hybrid of things. It could be nationwide distribution. It could be regional distribution. It could be a combination of both, with key strategic alliances.

Matties: Correct me if I'm wrong, but you've only recently become national here in the U.S. You've always been a regional distributor, right?

Stone: Yes, when we were granted the ITEQ line in May 2015, that was our first foray into having a national footprint.

Matties: How is that national coverage working out for you?

Stone: We're actually delighted with our progress so far. Twice as long for half as much is the saying, so we've got a long way to go, but we're very happy with the level of progress so far.

Matties: What market specifically are you going after with this laminate line?

Stone: It's going to be more in terms of the high-end multilayer market. The higher layer count boards are ITEQ's sweet spot as well, and this is where their superior quality will pay dividends for our customers.

Matties: Well, for 50 years on you guys look strong and it sounds like you're making a lot of the right moves. I think you're right that it's a hybrid of a lot of different things with the way that the market is moving so quickly these days. I look at these 3D printers and printed electronics and I just think that 10+ years from now they’re really going to be a viable option for at least solid rapid prototypes.

Stone: You're exactly right. We're going to have to continue to adapt our business accordingly, but at this time I don't know if anyone knows exactly what that means. We've tried to see out 10 years, Barry, and I can probably see out, I was going to say three months, but probably three years is where I think our visibility is half decent.

Matties: It's a testament that you're still here 50 years out, so you guys certainly have adapted along the way, and that's what smart companies have to do. You can't rest on what you know.

Stone: We're doing a lot of work in terms of how we market ourselves, in terms of upgrading our website, social media, and of course working with I-Connect007. The other thing I failed to mention was we've done a lot of work on the supply chain and logistics end of our business. We brought a young lady in from a large Asian-based electronics manufacturing company. She's a specialist in logistics and supply chain management, has done an incredible job organizing and moving products across 100 plus board shops in North America spread across 6000 kilometers.

We've upgraded our ERP software, and made it cloud-based. IEC used to muscle product around, and now we're trying to finesse it and use data, analytics and science as opposed to art, which is how we moved it around historically.Page 2 of 3

• < Previous Page
• Next Page >