PCB Finance Class With Jeff De Serrano
July 28, 2022 | Nolan Johnson, I-Connect007Estimated reading time: 2 minutes
Class is in session! PCB Technologies President Jeff De Serrano takes us through some of the struggles of the PCB industry over the past 30 years, how U.S. legislation seeks to level the playing field, and whether a “monopoly” of fabricators is healthy for our industry. In his chat with Nolan Johnson, Jeff gets out his investment playbook and talks strategy. Don’t miss this one.
Nolan Johnson: Jeff, you have an interest in getting involved with advocacy groups. What’s your motivation? As a fabricator, what value do you see in them?
Jeff De Serrano: We hope people understand that we’re not just a commodity in the United States. When PCB production went over to China, it became a commodity. When I started in this business, it was a unique industry. We built some of the craziest stuff to make the world go around; being an engineer, an EE, I thought it was great.
Then it switched to a commodity. After 2008, finance took over most of the purchasing activities for OEMs, and they’d say, “We’re not paying for that. You can buy it over there and it’s cheaper.”
In the United States, we all suffered for a while. With these advocacy groups, I’m hoping everyone will realize and understand that it’s not a green thing and it’s not a commodity. When you’re 4,000 units a year or 10,000 units a year, it’s not a commodity. When you’re buying a million a month, that’s a commodity. We don’t make bread; we make customized specialty items for military warheads, the communications network infrastructure, 5G, and other strategic applications.
The U.S. manufacturing industry is up against a challenge: To make money, you need to be in the advanced technology market, and the equipment investment is very expensive. It’s not just a commodity anymore. That’s the main thing for me.
Johnson: You’re an industry insider, but right now, you’re also an advocacy group outsider. What’s your assessment of how they’ve performed over the past couple of years? I’m thinking of PCBAA, USPAE, and IPC. Each has a slightly different focus and mission statement.
De Serrano: I have not joined the PCBAA. They’re tightly focused on the DoD market. They’re making headway, but anything in the government takes a very long time. We’re only “this big” in a pot that’s much bigger, but I do think they are making progress.
At least it’s a path forward and we can speak to the DoD folks. They understand that in the truest sense in America, their supply chain is almost gone. You’ve got major players acquiring everybody and all these other mom-and-pop shops that can’t keep up with the cost to invest in the latest technology.
Johnson: We’ve got the CHIPS Act, as well as the Supporting American Printed Circuit Board Act of 2022, which is basically the PCB fabrication and assembly equivalent of the CHIPS Act. Both bills are on the Hill right now, going through the process to become law. This seems like a major accomplishment. How do you view that legislation as far as helping the industry?
De Serrano: I know about the CHIPS Act and it is awesome. If you look at the scope of things, in the 1990s we made most of our semiconductors here; overseas was 10% or 12%. Now it’s maybe 8% here and Taiwan is making 85%.
To read this entire conversation, which appeared in the July 2022 issue of PCB007 Magazine, click here.
Suggested Items
Seeking Employment: Meet Parker Capers
04/18/2024 | Barry Matties, I-Connect007Parker Capers, a cybersecurity professional with a decade of experience in the SMT industry, earned a bachelor’s degree from DeVry and is CompTIA Security Plus certified. He is open to various industries but has a strong affinity for manufacturing due to extensive familiarity. Parker appreciates smaller companies where personal connections matter. Are you hiring?
SEMI Applauds CHIPS Program Office Progress to Diversify U.S. Semiconductor Industry Workforce
04/18/2024 | SEMIThe SEMI Foundation, the arm of SEMI dedicated to supporting economic opportunity for workers and the sustained growth of the microelectronics industry by creating pathways and opportunities for job seekers, applauded strides made by the CHIPS Program Office to diversify the U.S. semiconductor industry workforce and its release of the First Annual Report Regarding the Opportunities and Inclusion Activities Undertaken by the Department of Commerce.
VDMA: Machine Vision Navigating Through Uncertain Times
04/18/2024 | VDMAFor over a decade, the European machine vision industry has reported steady growth, with turnover increasing by an average of 9 percent annually between 2012 and 2022. Despite a temporary setback in 2020 (minus 4 percent) due to the Covid-19 pandemic, the industry rebounded strongly in 2021 (plus 17 percent) and 2022 (plus 11 percent).
IPC Bestows Posthumous Hall of Fame Award to Industry Icon Michael Ford
04/18/2024 | IPCIPC honored the late Michael Ford, Aegis Software, for his extraordinary contributions to the global electronics manufacturing industry with the IPC Raymond E. Pritchard Hall of Fame Award at IPC APEX EXPO 2024. IPC’s most prestigious honor, the Hall of Fame Award is given to individuals who have provided exceptional service and advancement to IPC and the electronics industry. Ford, an industry leader and valued IPC volunteer, died suddenly in January 2024.
On the Line With... Podcast Talks With Cadence Expert on Manufacturing
04/18/2024 | I-Connect007In “PCB 3.0: A New Design Methodology: Manufacturing” Patrick Davis returns to the podcast to talk about design rules. As design considerations become more and more complex, so, too, do the rulesets designers must abide by.