The Way I See It: Bits and Pieces – PCBDesign007

Editor’s Note: This column originally appeared in the October 2012 issue of SMT Magazine.

Manufacturing is Coming Back to N.A.

A few days before IPC Midwest, IPC issued a press release which addressed the continuing onshoring of electronics manufacturing in North America. Nearly $2.5 billion (at least) of electronics manufacturing operations are expected to return to N.A. during the next three years.

As the industry ran to China for its lower costs during most of the last decade, the experts warned that there would be problems with cultures, quality, logistics, security, and more, and that the China panacea may not be what most were expecting. According to the press release, “Companies cited quality control as the primary reason for bringing operations back to North America from overseas. However, being closer to customers is the driving force for companies establishing new operations in North America.”

Before we all get excited, understand that much of this manufacturing will be located in Mexico. I’m sure we’ll see some in “El Norte,” but the lion’s share will flow into factories south of the border. And, I suspect more and more of these factories will be highly automated, which translates into fewer but better jobs for people north and south of the border.

For more on this, read IPC’s press release or watch my interview with IPC’s Sharon Starr, where she goes into a bit more detail about the report.

Naka, Custer, and Miller Discuss $6 Billion Worth of PCBs in N.A.

I love reading e-mail threads between Dr. Hayao Nakahara, Walt Custer, and Harvey Miller–these guys, in the know, going back and forth, sharing their thoughts and ideas as to what’s what. A recent discussion flowed around the size of the U.S. PCB “requirement.” Actual production is hovering around $3 billion, but the “experts” believe approximately twice that amount is used here, based on semiconductor consumption. And, with the onshoring that is forecasted, that number might even be higher.

Here’s a bit of their logic: Rigid PCB/SEMI: 50/301, approximately 16%–for every $ of IC value in electronic equipment there are 16 cents of rigid printed circuits.

PCB value needed to support $40B of semis = 16% x 40 = $6.4B for U.S. 

There’s the opportunity. Now, how do you get it?

Japan Melting Down, the Apple Effect

Wow! You have to read Dominique Numakura’s piece on the Japanese consumer electronics industry which he equates to Darwin’s Theory of Evolution. The article describes how the industry has been blindsided by Apple. What has typically been a very reliable market for homegrown consumer electronics has been blown wide open by the introduction of the iPod, iPhone, and iPad. Apple didn’t just change the rules for us here in the U.S.; it has shaken the industry worldwide. All major OEMs in the segments Apple serves are scrambling. There are no more safe havens.