Testing Todd: Turning Into the Wind

Reading time ( words)

The last three years have been a challenge. If it wasn’t the “Rona,” aka COVID-19, it was the circus of shenanigans back in Washington, neither of which have been pleasant. So, it’s not hard to figure out why we are all in this current situation. Maybe we’re not quite yet in a recession but rather a stagnation.

Many businesses took the “duck and cover” approach, slowly downsizing their operations many times over to weather the storm. The winds of change have come, but many are still like the character Wilson, looking over “Tool Time” Tim’s fence to see what he will do. That is keeping us stalled out. It’s time to go back to our sheds and sharpen the saw.

Now, what do I mean by this? Things may never again be the same as they were in 2019. How we did things, our market share, and our strategies are likely no longer valid. Safe to say, we must rebuild. First, we must examine our core disciplines. Are those previous targets still valid? Is the niche we thought we had still there? Likely, but not as we remember. Don’t hold on to something that no longer works. Are your teams smaller? Is that a problem? Not necessarily. These are your most important employees; they have weathered the hardship along with you. It’s time to rethink the business.

Maybe it’s time to redefine your niche. Strong skills come to a team that stands behind strong leadership and forward thinking. Sometimes this requires stepping back and restarting from a historical checkpoint, back when production and output were strong. Maybe that older approach isn’t the way you were doing things when the 2020 storms hit, but that was still a time of success and solid growth. Well, today’s consumers, like military and aerospace, are still out there. If the market went soft for you, there is a reason. Maybe it’s just too expensive for you to compete in that market and your margins can’t handle it.

Here is the hard decision part: Should you stay with the losing venture, or let it go so you can redefine your core niche and go 110% at it? None of us can do all things all the time. If you’re trying to do what Tim does on the table saw with a handheld skill saw, you won’t succeed.

Our problem right now is still the “wait and see” attitude: “Let’s watch and see what happens.” Well? We’ve been doing that for three years now. Supply chains are recovering, gas prices are falling, and customer demand is not going to diminish.

Consumers are frustrated as products are failing to maintain inventory levels while demand remains high. However, the PCB industry has softened, with overall square footage down in many sectors, including consumer electronics. We need to get back to building. We have strong teams out there and manufacturers large and small that just need to sharpen the saw, rethink their core niche, and redeploy to do whatever they decide is best for them in this re-emerging market. Create that iron core discipline and execute it. But remember: Don’t bite off more than you can provide. Create that quality product, deliver it on time, and provide your customers with the kind of service that will make them a lifetime partner.

Once your core disciplines are solid and your tools are sharp again, turn that carrier into the wind and face the battle head on. Stop waiting to see what Tim is going to do on the other side of the fence—you’ve got your own map to guide you to the next horizon.

This column originally appeared in the January 2023 issue of PCB007 Magazine.

09/01/2023 | Peter Tranitz, IPC

When IPC staff wanted to showcase the latest industry developments to a European audience, they made an obvious choice: Timișoara, Romania. The dramatic economic expansion here over the past 30 years has resulted in a large concentration of manufacturing and technology businesses. Long-term planning by authorities positioned the city as a business-friendly and diverse cultural hub on the western border, providing easy access to Central Europe.

07/18/2023 | Shawn DuBravac, IPC

On May 1, First Republic Bank became the latest addition to the growing list of failed banks, making it the third major bank to collapse in recent months. Previously the 14th largest bank in the United States, First Republic Bank now holds the unenviable title of being the second largest bank failure in U.S. history. Silicon Valley Bank, which was the 16th largest bank in the country, and Signature Bank, the 29th largest bank in the U.S., also collapsed recently. These two bank failures mark the third and fourth largest bank collapses in history. Since the 1970s, more than 90 banks with assets over $1 billion have failed in the United States. Three of the four largest collapses have occurred in the past few months.

07/12/2023 | Barry Matties, I-Connect007

Jeff De Serrano, president of PCB Technologies North America, gives an update on the company’s recent move into advanced packaging—a move that stemmed from company leadership and vision for the future. He also shares his forecast on the PCB market, specifically around rigid-flex, along with some of the challenges the industry still faces.