FLEX007

Flex-Oct2018

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OCTOBER 2018 I FLEX007 MAGAZINE 41 Keithly: Our business is pre- dominantly North Ameri- can based. We don't have a significant international presence, so I think it's too soon to say. We reviewed the recent release of the tariffs. I suspect it won't impact us in the interim from a growth perspective due to the time- frame to convert new oppor- tunities. While quoting and manufacturing lead-time's at All Flex is relatively short— All Flex prides itself on the fastest turnaround for our customers—the design and approval process of the cus- tomer base for new products can be lengthy. If they're sin- gle sourced today or have a couple of sources and the tariffs are impacting their pricing, that may accelerate their interest in approach- ing companies like All Flex, but the time to go through the qualification period may be a bit extended, so I don't know that we'll see a significant impact in 2019. I'd love for there to be a positive impact, but I think it's too early to say. Thus, we're not counting on the tar- iff implications—whatever those may be—to help us in our business. We're more focused on things we can control and the types of cus- tomers and industries that we're pursuing. Matties: Flex007 Magazine is geared primar- ily towards the buyers and designers of flex, users, and OEMs. What sort of relationship do you have with the OEMs and are you in that deep in the supply chain process? Keithly: Yes, we are. As a company, we predom- inately focus on OEMs. If you look at our top customers, we classify them as Tier 1 and 2. We have direct relationships with the customers as well. Our approach is to market ourselves, so they know our capabilities, rapid response, customer focus. We also want to reach existing customers to capture a higher percentage of their business through new applications and increase awareness with prospective custom- ers who perhaps don't know our capabilities. We have put a considerable amount of effort into spreading the word so people can find us, in addition we're proactively marketing our- selves to the industry. Matties: When you're dealing with an OEM, what sort of challenges do they face in this arena utilizing flex? Keithly: From a technical perspective, I don't know that I can give you a good answer. What I've learned in these few weeks is the speed to market, required technology to use flex versus more rigid PCB designs, and the capability to offer our expertise to ensure it's appropriately designed for use in the application. Speed to market is always a challenge and we pride our- selves on the rapid response for our customers. Matties: You mentioned you're investing in equipment. What sort of investments are you making in the capability of your offering? Keithly: We've invested around our automated optical inspection, drilling and laser opera- tions so we can continue to market ourselves with shorter lead times and quick response for All Flex Flexible Circuits and Heaters headquarters located in Northfield, Minnesota.

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