Issue link: https://iconnect007.uberflip.com/i/1415897
OCTOBER 2021 I SMT007 MAGAZINE 9 ply chain (like EMS companies do), then invest- ing in our capabilities is seen by our customers as upstream supply chain resiliency. Of course, on the governmental front, we've re- cently seen encouraging bipartisan effort to im- prove the country's infrastructure. It certain- ly seems that, overall, the U.S. will be emerg- ing from the pandemic with updated, and opti- mized, working and living spaces. So, how have you and your organization re- sponded? It stands to reason that capital ex- penditures are on our collective minds for 2022 planning. In a recent I-Connect007 sur- vey, 80% of the responses indicate that they do have a capital expenditure plan, and that 60% of the respondents see the existence of that plan as "very important." When we asked about the cashflow/finan- cial strategy for funding capital expenditures, the responses all weighed in about the same: paying cash, financing with terms, leasing, and renting. I guess it's not about how you get there, just that you do get there. Aer all this preamble, what are we bringing you in this issue? Now more than ever, mar- ket drivers, technical advances, factory auto- mation, and customer demand are pushing as- sembly capabilities into new territory. And with these advancements comes the need to incorporate new equipment. In this issue, we investigate strategies and tactics for planning capital expenditures. SMT007 References 1. "DIY Home Improvement Industry Booms Dur- ing COVID-19," May 6, 2021, marketresearch.com. 2. "Pandemic Home Renovation Trends," Sept. 10, 2021, American Lifestyle Magazine. 3. "Why Home Improvement Has Surged And How It's Changing America," Sept. 11, 2021, NPR. tween the outside world and the home's interi- or. Since home delivery has increased as a pan- demic coping behavior, these spaces provide a place to process packages while keeping the home cleaner. Smarter homes: Smart home integration is occurring, especially in the kitchen—the clos- est thing to a manufacturing floor we have in our homes, aer all. Security and privacy: Security upgrades are motivated by a variety of factors, including more time at home and a greater need to su- pervise children while working. Expanded outdoor spaces: According to CNBC, outdoor space renovations are up by 300% year over year as homeowners look for more living, dining, entertaining, and recre- ational space in their own backyards. Just as we've tended to move outside for other hospi- tality services, so too are we making use of the outside in new ways. Dual home offices: No surprise that the need for dual home offices is one of the larg- est drivers of home renovation. Houzz, a home improvement online community site, reports seeing requests for home extensions and addi- tions up 52% over 2019. Rock-bottom interest rates also make home improvements more attractive. In a report on NPR, Frank Morris reminds us that in unset- tling times, spending on one's home can be a comforting investment 3 . Business is following suit, and it only stands to reason. A Bloomberg headline from Sep- tember 11, 2021, reads: "Capex Booms as Com- panies Prepare for a Post-Pandemic World." e author makes the point that both supply-side and customer-side issues are motivating this expen- diture. Companies have been burned by supply chain issues and are diversifying in creative ways to add resiliency to their supply chain. Simultane- ously, those companies are also upgrading capac- ity and capabilities to deliver for customers. If the company happens to live in the middle of the sup- Nolan Johnson is managing editor of PCB007 Magazine. Nolan brings 30 years of career experience focused almost entirely on electronics design and manufacturing. To contact Johnson, click here.