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22 I-CONNECT007 MAGAZINE I JULY 2026 BY D O N BA L L , C H E M C U T T H E C H E M I CA L C O N N ECT I O N Diversification, as a way to spread out risks, maintain steady cash flows, and sustain stable earnings in unpredictable business en- vironments, is a concept that has long been used by all business- es, not just PCB fabrication. Is it really a sound business approach? With the ben- efit of 20/20 hindsight afforded by over 50 years of experience in the PC fab busi- ness, I have formed some definite opinions and observations on this subject, which I will now share with you (with some caveats). First, I am an outside observer of the situation. I have never been part of the management or economic teams involved in decisions about whether to diversify; I'm just an observer of the results. Second, the opinions expressed here are entirely my own and do not necessarily reflect those of the manage- ment. So, with that in mind, let us continue. One thing I have observed over the years is that the trend to diversify is cyclical. At some point, the advice from the economists is "diversify, diversify, diversify," for the reasons stated above. Then things quiet down for a while, followed a few years later by another economic downturn. Economists now say you should focus on strengthening your core business and avoid wasting time and resources on unrelated businesses. In other words, the advice from the economic gurus is to de-diversify (undiversify?) and get on with the business you know. A few years later, as the business environment once again becomes more unpredictable (when does it not?), the advice is to once again diversify. I have experienced two of these cycles (maybe three) and have come to suspect that the advice to diver- sify or not is genera- tional and not based on true economic analysis. Generation 1 of MBA economic gurus needed to give advice during economic uncer- tainty and advised diversi- fication. They grow old and retire, and when the next genera- tion of MBAs runs into economically troubled times, they advise de-diversi- fication because they must offer some advice, and everyone has already diversified. Generation 2 grows old, retires, and, at the next economic crisis, the next generation of gurus advises diversification again. In other words, the advice to diversify may be because that's where they are in the cycle, rather than a new, exciting economic analysis. The reasons for diversification or de-diversification during economic uncertainty are not unsound, but not for everyone. Consider whether your urge to diversify is your own decision or merely following a fad promoted by some economic gurus who may not have their heads in the same world where you exist. When History Repeats Itself on Diversificiation