Generate a creative annual spending plan that satisfies the demands
for infrastructure replacements and includes much needed investment in
technology upgrades.
One of the things I often
grapple with is capital spending. Every year someone gives me a capital
“wish list”. Looking it over, each item seems to make sense, but when I
get to the bottom line I suddenly find myself wishing there were no
list.
It would be great if investment was always
about exciting new technology, but often capital is “invested” in more
mundane things, like replacing the roof. No matter how much you have –
or don’t have – for capital investment, routine maintenance often takes
a significant percentage, leaving precious little for true investment
in the future.
While it’s possible, if not always
easy to borrow to close the gap between the needs and wants, that too
has its risks. There are many PCB companies who are no longer in
business in North America who know the perils of this approach all too
well. The lessons of the past are very clear, spend only what you need
and can afford.
One historic reality of our
industry is that technology is often a “moving target.” The advancement
of some technologies requires development of process changes utilizing
the wide footprint of existing equipment. Other technologies require
radical change not only in process, but by adding new equipment as
well. Such an example is microvia technology, which requires new
drilling equipment as well as process changes to existing imaging and
plating capabilities. Looking forward, many new and emerging
technologies, such as the new highly touted Occam Process, are still
big unknowns. The potential impact of these technologies on the
industry and what specific capital investments will be needed has not
been identified.
And that’s where the juggling
begins. If the roof falls in, the priority is very clear – you need to
invest in a new roof. However when technology is constantly changing,
how do you know exactly what you need, and how do you get a clear
direction concerning future capital investments?
Asking
your customers or prospective customers should be the first step. This
information will provide valuable input, but may not provide the best
answer. What it might do however, is narrow some of your options and
start a “reality check” that enables you to more clearly focus on
getting to the best answer. Knowing where to begin to look is only the
first step in determining what specifically to do, and more
importantly, how to minimize wasted time and investment.
That’s
where taking advantage of the myriad of industry technical sessions,
management meetings, workshops and networking opportunities – globally
– can really help. Attending a technical conference or trade show can
provide the opportunity to see many new products and technologies in a
short amount of time.
Often, when I have attended
industry events, I have been amazed at how many people simply show up
and don’t become involved. It’s those passive participants who often
say that the event was not worthwhile, or that they wouldn’t do it
again. On the other hand, those who roll up their sleeves and get
involved are the ones who develop strong relationships with their peers
– relationships that enable them to pick up the phone and compare notes
on technology and its implementation when they most need advice.
Working
though the technology purchasing process - without going broke -
requires knowing who to ask when questions arise. Equally, all
relationships require the willingness to give and take – to reciprocate
for the assistance offered. Obviously, not all information shared will
result in an “ah ha” experience, but combined, this knowledge often
works like a compass to provide a clear direction.
Opportunities
to learn about new products/processes have expanded greatly in recent
years. North America is no longer the biggest market, so many
opportunities now exist only in other parts of the world. In
particular, walking the show floor of an exhibition in China will
provide an opportunity to see equipment by manufacturers that most of
us have never heard of. While equipment may look similar, it is an eye
opener to see how companies invest their capital to develop a better or
cheaper mousetrap, which in turn may open your eyes to ways to shave a
little off the cost of capital investments. In addition, many of the
long-standing suppliers will show more products and equipment at an
exhibition in an emerging market than they would in the stable niche
market of North America.
Which brings us back to that
capital investment wish list. The trick is juggling the demand for
infrastructure replacement with the need for investments in new
technology. The only way that anyone in a key technology/capability
development role can clearly determine the difference between what is
truly needed versus the latest fad is to begin the process of learning.
Learning to network to understand and anticipate industry trends
provides the critical knowledge for “cost vs. value” when considering
capital investment, as well as a giving you a barometer as to
justifying that truly new technology purchase.
Capital
investment, like so many other aspects of our industry, is a process
that requires constant and continued attention. No one has all the
resources they would ideally like to have, and everyone has a budget.
However, working the process allows cleardirection in focusing
investment capital, so that you don’t have to wait until the roof falls
in! PCD&F
Peter Bigelow is president and CEO of IMI (imipcb.com); This email address is being protected from spambots. You need JavaScript enabled to view it..
