Issue link: https://iconnect007.uberflip.com/i/1415897
OCTOBER 2021 I SMT007 MAGAZINE 23 stalled, but we can't get people on location due to quarantines or barriers to travel. at has affected the market over the last, let's say, 18 months, and I think we will still be impacted probably over the next 18 months with what's going on with COVID. With traditional equip- ment, we typically can get that installed, the out-of-the-box type equipment, but the more complex or the automated factory equipment, it has become and is a real challenge to get on- site and running. Matties: You're right. Does that change your range of planning to where you're looking at a longer window, from one year to maybe a three-year window in terms of investment? Halvorson: I think any company that is success- ful and growing right now really needs to look at a five-year window, and that's where we're driven. Vaughan: Another important thing to think about, too, is that the equipment has changed. We've all been doing this a long time, and you used to be able to pick up an exposure unit for $50,000 or $70,000, once upon a time. Now, those are laser direct imagers, those are half- a-million dollar-plus investments, and on and on it goes across the drilling platforms and ev- erything else that we do. e capital require- ment has increased pretty dramatically to sup- port the technology curve. Matties: Right. When you look at equipment like DI, though, you're eliminating so many other processes. It's an easily justified expense, as you know, yet it's still an expensive piece of equipment. Vaughan: Yes, exactly. You still have to write the check. Matties: Yes. One of the key takeaways from this conversation is the labor shortage and the thinking that we have to bring equipment in to basically eliminate labor positions. at's the only way that we can really move forward, especially with what's going in the market today. Halvorson: I think for the most part, we're not eliminating labor. We're augmenting our cur- rent labor forces to ensure that they're stable while we grow the company. Matties: Well, yes, and that's the point. You're eliminating the labor for the added capacity. You're not hiring more people to build boards. You're bringing in smarter technology to build more product. Halvorson: Yes. Our operators are fairly technical. e difference that we see with today's equipment is that it's less boutique, and the automation within the capital that we're purchasing itself ensures quality. So even though it requires, let's say, a different skill base in the employee, it's still very im- portant that the employee is aware of quality and our requirements so that they can en- sure the equipment is operating properly. So they've turned into technicians versus pure operators. Matties: Exactly. Is there anything else about CapEx that we should be sharing with the in- dustry? McCoy: I think we covered the questions pret- ty well. CapEx will continue to be a challenge, but with good planning and good management, I think installs will be successful and capital will be properly utilized to serve our customer needs. Matties: All right. ank you so much. Vaughan: ank you, Barry. Always a pleasure. SMT007