Issue link: https://iconnect007.uberflip.com/i/1437606
50 PCB007 MAGAZINE I DECEMBER 2021 heard about to show this is transitory or short- lived. Mirshafiei: We recognize this is a cyclical busi- ness, so you can't take a short-term view of these scenarios. at's why you must be trans- parent. You must do your best to absorb as much of the cost as you can, which is what we're doing. When it gets to the point that it no longer makes good sense, you must be trans- parent with your customers about the inflation that you're experiencing. is is a long-term strategy. Matties: You're not unique, though. You're not the only one saying, "We have to raise our prices." We're seeing it at the grocery store, at the gas pumps, in every aspect of life. It's not a shock. T. Kelly: at's right, and it goes to Sean's point. You have to bifurcate the discussion between high demand and inflationary pres- sures. Eventually there will be an inflection point where inflationary pressures lead to a slowing of demand. As Sean said, everything is cyclical. Ultimately, we will reach the point where we can't pass on that inflation any lon- ger because it will impact demand. at's where you see it, and it's definitely affecting some other sectors because you can't keep up at this pace. Mirshafiei: It seems like the demand will have to soen for the supply chain to recover, to have fewer container ships stuck, or needing to turn around. Frankly, if people don't have the excess disposable income, they won't buy that new game console. ey will wait longer to buy the next iPhone, or whatever the case may be. Maybe that's the trigger because it's not like we're suddenly going to have more container ships, a whole bunch more contain- ers, or more available copper. It won't be on the supply side; I think it's going to be on the demand side. Matties: What might be interesting about this cycle, though, is the dip may not be as deep for the U.S. fabricators. Mirshafiei: You're right. We are a pretty broad industry in the U.S., not driven by any one specific segment. Certainly, automotive was extremely strong in Asia. Some aspects of tele- com were also extremely strong, which was tied to working from home and so forth. Not being able to have boards built for automotive in Asia pushed it back to Europe. Investments in manufacturing drove industrial growth in Europe. e U.S. has seen the least swing, the least amount of volatility. You have a very strong base of aero and defense types. You saw the let-off on commercial aerospace, offset by steadiness Isola's 118,000 sq. ft. manufacturing and R&D Facility is in Glendale, Arizona.