Issue link: https://iconnect007.uberflip.com/i/1512467
24 SMT007 MAGAZINE I DECEMBER 2023 tronics market. It really sounded like a rec- ipe for disaster because everything was going overseas, but it gave us a jump. We really care about this industry. I've been an officer in SMTA for many years, and we want to stay in touch—as much as a finance person can understand the technical aspects of this business. I think that makes us unique and allows us to work more closely with companies because we've proven our commitment to the industry. Johnson: What is the outlook if someone is looking to respond to market dynamics— improve their processes, change out their equipment, add capacity, any of those sorts of growth options? Carey: It's still positive. Our custom- ers have paid well. We think there will be plenty of finance options for companies going forward. Pine: Our portfolios have per- formed very well and paid on time. Based on this history, we are oen able to offer preferred finance pro- grams that other industry segments can't offer in these more challenging times, both with respect to interest rates and credit approvals. Barry Matties: Don't you think interest rates are a hindrance as is the uncertainty with geopolitical situations affecting onshoring? You sound very optimistic, which is a bit contrary to what I'm hearing on the news. Pine: We also see some uncertainty in the economy; businesses want to keep their cash reserves for that reason. So, while interest rates might be higher now, financing and keeping cash on hand is a bit of insurance for them. I've even had a customer point out that they'd rather pay 8% for a loan and put the cash into a money market account where they can earn 6% right now. en, if they need the cash, it's available to them, so they perceive the cost of financing as only a 2% dif- ferential. Carey: Keep in mind that we've gone through worse loss than this. We're tied to treasuries. Today, five-year treasuries are about 5%. In the 1980s, treasuries were 15%, and we got through that. We could hardly imagine how you'd buy a home when the prime rate was 20%. Matties: Do you get a sense of trends in terms of equipment being sought or purchased, specifically along the lines of automation, that help offset the workforce challenges? Brian Carey and Amy Pine