Issue link: https://iconnect007.uberflip.com/i/1512467
20 SMT007 MAGAZINE I DECEMBER 2023 Is inventory management and/or supply chain tying up capital that would otherwise be used for capital investments? I think the increase in inventory buffers— which ballooned during the pandemic supply chain debacle—have begun to wind down and that is freeing up capital. ere is a significant amount of activity in both the PCB and EMS equipment areas but that has slowed because of rising interest rates and ongoing concerns about the economy. What's your perspective on buying capital equipment with cash vs. financing? I've always had a very conservative perspective on equipment purchases: If you can't afford it today, why do you think you will be able to afford it tomor- row? With that said, financing at very low rates or with payments over time from your supplier allows you to maintain liquidity and more flexibility. Technologies are hitting an inflection point in both the EMS supplier and PCB fabrication realm, where densities, complexity, and I/O counts are requiring increased placement and fabrication accuracy, inspection capabilities, accuracy, and speed and test capabilities. All these drivers are pushing companies to find a way to make these investments. Whether paying cash or financing your cap- ital investments, I would encourage all com- panies to ensure that they are receiving the full benefit of government incentives such as the R&D tax credit. ere are several pro- grams available, and they are there to encour- age investment in our industry, especially for small- and medium-sized businesses. Is the CHIPS Act trickling down yet? While I don't know the details of the fund- ing status, I have seen the positive impact, renewed optimism, and lots of activity result- ing from the effort. It seems there are ripples ahead of the waves. ere is a lot of confidence that those CHIPS Act dollars and the commit- ment to the U.S. electronics industry are real and long term. at seems to be driving activ- ity in all areas, from reshoring to new factory investment, and it is having a real effect on U.S. business by reinvigorating the market. Which process technologies hold the most opportunity for growth in the industry in 2024? e industry is expected to witness substantial growth in Smart, connected factory advance- ments in 2024. ese developments form the foundation for real-time data analytics and actionable insights, enabling more efficient and informed decision-making. e integration of artificial intel- ligence (AI) and machine learn- ing is particularly exciting, with several AI companies working within the industry. Addition- ally, the expansion of robotics and automation into higher mix, lower volume manufacturing areas presents a significant oppor- tunity. ese technologies enhance repeatabil- ity and throughput, leading to a strong return on investment while allowing the workforce to focus on more valuable tasks. How does "going green" factor into industry dynamics? Is it a cost of doing business or a selling point? Embracing sustainability and "going green" is not just an option; it's a necessity. New technol- ogies, especially in PCB fabrication, are chang- ing the economics of the business by reduc- ing water and power requirements. Adopting green practices is not only socially responsi- ble but also economically viable. It can serve as a selling point for environmentally con- scious consumers. Companies should consider investing in green initiatives as it aligns with global sustainability goals and can contribute to cost savings in the long run. SMT007 "Going green" is not just an option; it's a necessity.