Issue link: https://iconnect007.uberflip.com/i/1392944
72 PCB007 MAGAZINE I JULY 2021 have it quantified, but we see a reduction in overall lead times as it relates to certain product groups. However, once again, as we've experienced lead time increases, it's overshadowed by some of the other macro chal- lenges that this industry is fac- ing. We may see an improve- ment on our specialty line, but what does that improvement mean? We have industrial en- gineers look at work cells, and maybe we can expedite or re- duce the takt time of a certain product group, and then we can see a reduction there. However, it's overshadowed, especially right now, by some of the global sup- ply chain issues. ink about what happened in the Suez Canal, and the container shortages that the entire global economy is facing when we can't get a container to ship material. Matties: You're saying the lead time issues are supply chain and not capacity issues. Kelly: It's all of the above. Ultimately, the indus- try is growing more than anticipated six or 12 months ago. ere are macro issues relative to container shortages. If you can get a contain- er, there's a lineup at the ports on both the East and West coasts to get your material into the country. It's an accumulation of numerous is- sues that are driving some of the lead times. It wouldn't be fair to say it's just one aspect of it. Matties: Obviously, during a period like this, fabricators may look to stockpile material as much as possible. Are you seeing that behav- ior? Kelly: It's hard to have visibility into who's stockpiling for inventory vs. who has an in- crease in demand. e velocity of orders com- ing in has been on a steady increase for many months, so that's a positive sign. To say how much of it is stocking inventory vs. how much is true demand gets a little bit blurry. We have seen consistent growth month over month, quarter over quarter, and year over year, so it's probably a bit of both. ere is high demand for our products for different applications, and some people could be out there looking at stocking some of the inventory with the expec- tation that copper will become in short supply or that the cost increases will not go away any time soon. It's probably a bit of both. Matties: When you look at the market and your projections, what do you see in the next year to two? Is Isola still projecting steady growth, or do you see sharp increases? Kelly: We are still planning on steady growth and that's why we've had the investments both in Arizona and new treaters in Taiwan, and fu- ture growth capital deployment over the next 24 months in the United States. We continue to see and forecast growth; we're preparing and planning for it. Matties: From a technical standpoint, Travis, it's the high-end specialty materials that might Isola's new state-of-the-art manufacturing facilities.