Issue link: https://iconnect007.uberflip.com/i/1479191
14 PCB007 MAGAZINE I SEPTEMBER 2022 in the past. Yet it's not such a good idea any- more because you already have a challeng- ing work environment unless your factory is the only game in a small town, and even then, remote work is a competitor to you. Inevitably, you must deal with people constantly chang- ing jobs. In this environment, it is generally better to hire a CTO who can be the archi- tect. ey're responsible for the technical part, but they also have some finance background to plan the investments, look at the return on invested capital, and how to balance any nec- essary financing for new equipment. If they do not have the finance background, pay for the classes so that they can get it. ere's tremendously high demand in the United States for anyone who can help upgrade a factory; it's just about connect- ing the dots in the plan. From my recent experience, there's a strong ROI right now, and it's a great environment to do busi- ness. We just need someone who can connect the dots. Johnson: Alex, it sounds like some of the fabs may have opti- mized R&D right out of their organization. Stepinski: R&D groups are generally only pres- ent in big companies with a portfolio of stra- tegic projects. In smaller shops, it's not about having an R&D group that develops an auto- mation process, or that you can't afford to have an R&D group; they're just not there. Say you want to replace your plating line, but you can't justify it. You need to say, "We can justify it if we can hold this tolerance and we get these new revenue programs." is is typically the CTO who should be saying this. en you talk to the customers and get some commitments and assurances—and not with- out risk/reward of course. Now you can say, "I'm going to do this because once I upgrade, I can get these programs." at's the risk-reward all business is based on. To me, this is how things should proceed, and that does not hap- pen as oen as it should. In many U.S. shops, the nature of our market is that it's oen thrown into engineering's bucket to make bricks with- out straw. Also, suppliers are oen leveraged as well, and they act in their own interests (which are not necessarily yours). Happy Holden: I agree, R&D is a different set of skills than process and plan expansion where you've got to focus on the goal, and the busi- ness plan that's driving it. You need the practi- cality of keeping it simple. Johnson: My question was reflecting some of those myths or assumptions that mechani- zation is an engineering and process development-type activity; more technical/R&D work. You're saying this is a business plan approach? Stepinski: Yes, completely. e market is ready for this. If you take that approach, you will take off right now. With all the supply chain disruptions and the current political situation, it's perfect tim- ing. Holden: at's why I emphasize the engineer- ing economics of return on investment, cost of capital, and present net worth and installation. Matties: How do you assess the current sales effort and talent within the industry? As CTO leadership, you're bringing in tech, finance, and sales. Stepinski: ese are the things a CTO should be doing in 2022. I've been taking courses myself on a regular basis and this is what the top schools teach. You're supposed to cover the