I-Connect007 Magazine

I007-July2026

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20 I-CONNECT007 MAGAZINE I JULY 2026 In fact, if you are defined solely as a fabrication provider, you place yourself in an increasingly vulnerable position. It is extraordinarily difficult to succeed in a global market dominated by price pressures, rapid technological change, automation, and sophisticated customer expectations. Domestic fabricators are competing against manufacturers the world over, many of which operate under dramatically different labor struc- tures, government support systems, and cost advantages. With the prevalence of automated online quoting systems and digital procurement platforms, engineers and buyers are uploading designs, comparing suppliers, and receiving pricing from multiple sources faster than ever before. This lends to the perception that a bare PCB is more of a commodity than a specially manufactured custom part, and this reality has fundamentally changed the economics of PCB fabrication. One may argue total value proposition, but in a global sourcing economy, price inevitably becomes the dominant factor in the equation. For U.S. domestic manufacturers, unless you are strongly aligned with government military and aerospace contracts, the battle is difficult to win. Margins tighten, relationships become transactional, and inevitably, loyalty weakens. Every quote is turning into a race to the bottom. After watching businesses survive, thrive, and sometimes fail over my many years in the industry, I see diversification as a must for PCB fabricators. More than a simple opportunity for growth, it is becoming a requirement for survival. Companies best positioned for future success keep PCBs at the core of their business and iden- tity, while building additional layers of value around them. They are transforming themselves from commodity manufacturers into strategic partners, and this distinction matters enormously. Customers want more than "just" a board supplier. They prefer working with companies that can simplify their work and lives. They want partners that can help solve problems, reduce risk, improve manufacturability, accelerate development cycles, and coordinate multiple aspects of production simultaneously, rather than merely fulfilling a single isolated manufacturing function. The good news is that this shift creates tremen- dous opportunity for companies willing to expand their capabilities thoughtfully and strategically. Here are some practical ways your company can look to diversify. PCB Design and Engineering Support The model of throwing a PCB design "over the wall" to your PCB fabricator is rapidly disap- pearing. Much of today's electronics is simply too complex for purely transactional relationships to re- main effective. One of the most natural areas for expansion is engineering support and design collaboration. Be a company that provides guidance earlier in the development process. Customers need help with stackup optimization, impedance control, thermal considerations, manufacturability analysis, material selection, reliability concerns, and advanced pack- aging challenges. Be a partner that understands how to improve the overall product design before production even begins. Perhaps one of the best examples of this trend is the emerging practice of co-design. (See Kristin Moyer's interview in the June issue to learn more about co-design.) When a company becomes involved at the engi- neering level, you're now part of the customer's development process. This engenders trust and loyalty, resulting in significantly more stable long- term business relationships. Sourcing and Supply Chain For years, many domestic manufacturers resisted incorporating sourcing capabilities into their busi- ness models, viewing offshore manufacturing as competition rather than an opportunity. But rath- er than organizing their thinking around industry boundaries, your customers are trying to solve problems efficiently and keep costs down. They may be developing a complex electronics program that requires simultaneous domestic quick-turn prototyping, offshore production scaling, component sourcing coordination, logis- tics management, assembly integration, and engi- neering support. If you can help manage all those moving parts, you are vastly more valuable than if you offer only one isolated service.

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