SMT007 Magazine

SMT007-Dec2023

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68 SMT007 MAGAZINE I DECEMBER 2023 What's your perspective on buying capital equipment with cash vs. financing? We recently invested in a top MRP system and materials team. We believe this is a significant and critical investment needed for the future of Lightspeed. It has already started to give us much more insight into how we purchase and inventory the material. We have dramatically increased material turns and reduced inven- tory values, helping to improve cash flow. We do not have any long-term debt on our balance sheet, which is critical to maintaining a strong financial future. Is inventory management and/or supply chain tying up capital you would otherwise use for capital investments? We have always liked to purchase capital equip- ment with cash compared to financing. With interest rates rising, we are trying to continue Feature Q&A Lightspeed Manufacturing is a Massachu- setts-based contract manufacturer specializ- ing in production, prototyping, and repair ser- vices. Rich Breault, Lightspeed chief executive officer, shared his outlook from the northeast United States. For 2024, how would you describe your economic outlook for the industry and your company's business outlook? What are you optimistic about? What are you worried about? Rich Breault: I see the outlook for the EMS pro- vider business as very positive for the upcoming several years. I can especially speak about the EMS in the U.S. Northeast region. ere has been much consolidation and M&A activity in the last couple of years. ere is currently just a fraction of providers compared to five years ago. Most of the larger Tier 1 suppliers have le the territory, and many of the small providers have not continued to make the investment in new capital equipment and advanced process. As such, at Lightspeed we expect to see a mini- mum 50% sales growth in 2024. Lightspeed Manufacturing Sees Company Growth in Industry Consolidation Rich Breault

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