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An American PCB Manufacturer's Tale
December 4, 2012 |Estimated reading time: 6 minutes
After following all the arguments and counter-arguments during the long presidential campaign, regarding who will best be able to help the economy, education, healthcare, national security and small business, we’ve finally come to an election result.
Will the political parties work together? Is there more or less uncertainty? What’s a winning strategy for U.S. business? And most importantly, what is the impact on small American PCB manufacturers like Mass Design, which has carved out a specialized niche in an increasingly global PCB industry?
Though it is among the smaller companies of its type in the United States, Mass Design is positioned for the future. This is due largely to its reputation for producing high-reliability boards for military, medical, aerospace and instrumentation applications. It has a core of 70 highly qualified people who can perform every function needed—from design through prototype to fabrication and assembly—all under one roof.
For insight into the future of a U.S. PCB shop, and the future of the American PCB industry as a whole, I posed a few questions to Mass Design’s Bill Gately.
DP: Do elections matter?
BG: Since Paul Boduch and Tony Bourassa founded Mass Design in l986, we have been through seven presidential elections. Of course, for a day or two after the election, everyone tries to sort out how the results of this election will impact their own business. We’ve certainly heard all the arguments about who will be better for defense and who will be better for healthcare—two sectors that are increasingly technology driven and where Mass Design has a dominant position. But in the long run, we’re a global business, and U.S. politics and policy matter far less than how we adapt to the major technology, business and economic shifts and pressures developing in the U.S. and around the world.
DP: How will you focus Mass Design’s resources for this decade?
BG: Technology and its impact drive our growth. Let’s take military technology. No matter what the defense budget is, our military has been and will continue to be more technologically driven over the coming decade.
Consider, for example, that since May of 2010 we’ve had a new command, the U.S. Cyber Command charged with coordinating our cyberspace resources and defending our information security environment. This emphasis on computer threats and warfare is unprecedented. We also rely on drones that are controlled in the US and deployed to conduct missions all over the world. As a spinoff, U.S. law enforcement agencies are adopting drone technology. Navy vessels are being retrofit with electronics to increase capability and reduce manpower.
A small group of Navy SEALS can now deal with an issue that might have taken a large troop deployment in the past. As we saw this year with the raid on Osama Bin Laden’s hideout, the ability to watch a Navy SEALS combat operation in real time is no longer the stuff of movies.
DP: What other opportunities do you see?
BG: Defense electronics is only part of the story. Energy is a big growth area for our sector of the board industry. During the past few years we have seen wind change from being thought of as alternative energy to mainstream. We have a customer working on next generation wind turbines. The boards developed are cutting edge and large so that they can handle the massive amount of current and power. We are using five-ounce copper on all layers, currently up to 26 layers. While most companies can fabricate boards up to 18 by 24 inches, the boards we make for wind turbines are 24 by 36 inches and employ a whole new plating process. Our work on wind power illustrates how quickly we can adapt to new challenges—something that can’t be outsourced easily.
Healthcare is another sector with enormous potential. Now there are a lot of areas where we can’t do much about cost. Doctors can see only so many patients in a day and nurses can care for only so many patients in a hospital. On the other hand, we are participating in developing advanced diagnostic and treatment equipment for companies such as Siemens, Baxter, GE, Tyco and others that will enhance outcomes and help control costs.
Likewise, home medical management and monitoring equipment is another big opportunity for us—especially with our capability in flex and rigid-flex circuits that make it possible to build medical devices for patients that are portable, easy to use and drop proof.
The integration of communication with home healthcare technology is another area to watch. In its most basic form – the Life Alert technology that alerts to responders—only scratches the surface of possibilities. In the future, I expect to see a totally integrated approach to home medical care, seamlessly linking the patient to the doctors, hospital, nurses, independent pharmacy, caregivers and family. Patients will access accurate, up-to-date information on prescription medicine changes while caregivers monitor adherence to medical protocols. This will help manage renal failure, diabetes, Parkinson’s disease and heart disease while the patient remains at home. Patients will no longer have to depend on a sheet of photocopied instructions or memory to maintain their healthcare regimen.
DP: What are the threats from manufacturers in Asia?
BG: In the U.S., we used to position ourselves as the innovators and the Asian companies as the producers when we needed large quantities, say, in excess or 2,500 boards or so.
Today, Asian companies are starting to compete for that developmental business along with U.S. companies. It is something for us to watch. But I do think that we are way ahead on being to able to develop boards with far tighter tolerances and multiple layers—routinely 24 and 26 layer boards, while most overseas manufacturers are limited to two to six layers while a few can handle 10-14 layers. And, during the developmental and prototype phase, communication and quick turn-around are essential, making it tough for overseas companies to compete.
At the same time, we are seeing more customers who want to stay in the U.S. They complain that manufacturing costs in China and other countries are beginning to rise, while the quality and technical capability remains unchanged. Shipping and delay add to the true cost and IP risks can always arise. Additionally, many customers are realizing that overseas manufacturers who don’t adhere to the same environmental and safety standards they have for their own operations at home can result in a PR black eye. Shifting to US manufacturers is a benefit for companies that want to check their corporate social responsibility block.
DP: What’s going on with design software?
BG: For a lot of product manufacturers, the cost of design software and constant upgrades is significant. This year, we partnered with a software company that offers customers free design capture software for board layouts in exchange for getting the manufacturing order—which Mass Design fulfills. By doing so, we help lower the customers’ costs and integrate the design and manufacturing process. Additionally the customers don’t have to make an investment to keep current with the latest design software upgrades, which helps them stay ahead of the technology curve.
Internally, we are investing heavily in manufacturing technology. We recently installed a German-made Schmoll Drilling Machine model MX-1 DH CCD that can do precisely controlled depth drilling and milling. This is a high-speed single-station drilling and routing system with a CCD camera for both surface and inner-layer registration work. We have also invested in an eight-head ATG flying probe tester and other equipment so that we can meet tighter tolerances as boards become increasingly miniaturized. Mass Design will continue to invest in new technology over 2013.
DP: A lot of US companies are complaining about the cost of employee benefits. What’s up at Mass Design?
BG: We look for bright engineering professionals and high-caliber manufacturing, service and sales employees and that requires a competitive benefits package. While we are concerned about the rising cost of doing business, I see us remaining competitive in terms of healthcare and other benefits.
Dick Pirozzolo lives in Wellesley, Massachusetts and writes about the intersection of technology and public policy.