Issue link: https://iconnect007.uberflip.com/i/1392944
16 PCB007 MAGAZINE I JULY 2021 than those demanded by our industry, and if we're to convince these guys to do the things we need them to do, we're going to have to pay the price. Copper foil factories don't spring up overnight; the lead time and the investment is huge. You've got to think that the foil guys are also going to enjoy their day in the sun a lit- tle bit because, of course, all the OEMs want more capacity, so prices come back down. ese guys will want to fulfill demand at just about the right pace, so they get a good return on their investment for some time. Matties: Of course, all of this is going to trans- late into higher board prices. In the U.S., we're already seeing the inflation and it looks like it's here to continue. Goodwin: ere may be a little bit of pressure to come off on glass fabric, resins, and things like that, as increases start to slow. But copper foil has a long way to run as the price of 0.062" rig- id right now, in dollar terms, is the same as it was in 1995 without any inflation adjustment. So, people are talking about prices going up, and prices are still relatively low. Feinberg: e price is the same, but what's the cost? Goodwin: at's a good question, the cost is higher. e margins in the business 20 years ago were great as a laminator. Margins for laminators right now are a little bit better than they were one to two years ago, but they were re- ally bad then. Feinberg: That's exactly my point. If, in fact, you're selling everything you can make, why wouldn't you raise prices? People are going to start to get that idea, and that's going to be another ac- celerator and all these accelera- tion factors on pricing are com- ing together at the same time. at's a little bit scary when you're talking about inflation. Goodwin: I think the U.S. is behind Europe in understanding what's going on in Asia right now in terms of the raw materials and lami- nate. And that is because people have start- ed to understand that it's now about securing your supply chain as well as about negotiat- ing the price. Of course, they're still negotiat- ing the price, but the continuity of supply is as important now as a discussion about price be- cause without flour you can't make bread. Matties: And it's a seller's market. e negotia- tions are clearly in your favor. Goodwin: Yes, but we also recognize that we will come out the other end of this, so we try to mitigate cost with efficiencies. Feinberg: If you're concerned about market share and you have to increase prices, you're going to keep them to the minimum. If you're not concerned about market share, then that takes away one of the brakes on price increas- es. And as different competitors raise prices so will the others—either that, or their stockhold- ers are going to fire them.