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Industry Insights at Mexitronica
December 31, 1969 |Estimated reading time: 11 minutes
Mexitronica will take place October 8 through 10 in Guadalajara, Mexico, serving as a window onto the promising electronics assembly market of Mexico. SMT wanted to know what the pulse and feel of the electronics assembly industry is right now, so we went right to the source -- you in the industry. Following is commentary from Mexitronica exhibitors about the state of the industry, their expectations for the show, and prospects for the future. Look for the official show guide on the show floor from SMT, and come see us in Booth 1230
SMT: What are your biggest challenges? Successes? Failures?
David YeeAgilent TechnologiesThis year has been very difficult for all electronics manufacturers and suppliers around the world. Agilent has been no exception. I have observed two main business challenges. First, most companies had excess equipment due to reduced production volumes; the need to use this capacity reduced expansion possibilities. Second, global companies are focusing efforts on reducing costs to stay competitive, many by moving operations to China. Agilent is addressing these challenges by helping our customers improve their manufacturing processes and strengthen their competitive position. Our services and support offerings have been very well received by customers wanting to take advantage of the times to optimize their quality and efficiency while minimizing costs.
Jim SprayData I/O Corp.Our biggest challenge lies in communicating with the right business leaders in the major OEM and EMS companies. While our programmers operate in engineering labs of design centers and on the floors of manufacturing operations, the benefits of using our Connected Systems from design through manufacturing and into deployment have a major influence on reducing time-to-market and cost of operations. Conveying these economic benefits on an executive level is required for an organization to see how our systems impact the efficiency of an entire value chain.
Craig BrownDEKAs a global supplier we understand the value of close relationships -- and this translates into real benefits for local customers. They know that DEK can offer more than just equipment, and our philosophy of continuous technology and process improvement means we can deliver a variety of solutions tailored to individual requirements. DEK has pioneered the development of mass imaging technology and is addressing applications such as wafer bumping and ball placement.
Rick ShortIndium Corp. A challenge we face is serving our global accounts as they realign and consolidate their facilities. Customers make the investment of getting a facility up and running (equipment, staffing, training, qualifications, processes, materials, etc.), only to close and move the facility soon after. This creates a great need for process support and staff training, worldwide. Indium's consulting and training program has been expanding to meet the needs of this dynamic market. We feel very fortunate to have made the investment in expansion of our consulting and training program at the proper time. Still, this fast-moving market places new demands on us every day. We will continue growing, and discovering the next new opportunity for partnering with the customer base.
A success that we are proud of is Indium's increasing market share during these difficult economic times. This not only involves generally gaining more and more customers, but also includes an emphasis on deeper penetration of key market segments.
Bob GiovannettiISMECA USA Inc.We're here to stay ahead of our competition. Every year we have more competitors producing quality equipment. Also, we came not only to understand what the customer needs, but also to make sure it's delivered when he needs it.
Mario LebraoSiemens Dematic Electronics Assembly SystemsThe biggest challenge we face in today's manufacturing environment is to sell machines and services in a market that is 90 percent down and flooded with capital equipment. However, Siemens Dematic is succeeding with positive sales numbers and very few reductions in our organizational structure. We are also taking this opportunity to invest in our services and our training center so that we will be positioned to manage the new industry demands when the market recovers.
Joseph VilellaVectron Inc.As an AOI supplier, our biggest challenge is educating the market. Many people in the industry still don't understand that not all AOI systems are alike. So we must continue to inform them that our large-format, digital-color, parametric measurement technology is not only different from conventional AOI but can significantly reduce their manufacturing costs.
SMT: What are your prospects for the future in the present economy?
David Yee Agilent Technologies Electronics manufacturers in Mexico will have to play by new rules in this environment. Companies will redefine their current manufacturing strategies; for instance, some companies are moving toward higher-margin, higher-complexity board manufacturing to be more profitable. They will begin to create alliances to work in a symbiotic way to become more competitive. They will have to reengineer their current processes and ways of working. Agilent's prospects are very good in this context because we provide solutions that are ideal for this challenging new environment. In fact, our Intelligent Test strategy includes a flexible, broadband portfolio of best-in-class test and inspection solutions that offer dramatic quality improvement for any kind of board in any setting.
Jim SprayData I/O Corp.With a broad range of programming solutions designed to meet the specific needs of customers in the military/aerospace, wireless, medical, gaming, consumer electronics, smart appliance and other important markets, we are seeing an increase in business opportunities as organizations gear up for increased production through the holiday season.
Craig BrownDEKIn tough economic times, customers need a partner that will stay with them and provide commercial and technology solutions, increasing both productivity and the bottom line. Our customers know that DEK offers an extensive range of equipment and options plus a high level of pre-placement process expertise -- including stencil technology through Acumen, a newly acquired DEK business.
Rick Short Indium Corp.Indium's prospects are excellent. Our larger market share will serve as a springboard for growth as the economy improves. Our emphasis on high growth potential market segments has set us up for above-average growth.
In addition, Indium's expanded offering of technical and training services offers great value to the marketplace, and will deliver increased revenues. This portion of our business has grown throughout the downturn -- a very good sign.
Bob GiovannettiISMECA USA Inc.We have been able to continue to engineer enhancements into our equipment to stay ahead of the competition and win business even in a downturn. Failures include not being able to predict the market. Even with visits to our customers and their customers, it has been impossible to predict a market swing. Our prospects look good. We have had a lot of inquires for our products in the past weeks, and our customers have projects and budgets.
Mario LebraoSiemens Dematic Electronics Assembly SystemsI see a bright light at the end of the tunnel. Our customers share our opinion that the market will experience some level of recovery by the year 2003. Every company has new projects and good business prospects for the next year. I believe this market has reached the bottom of the well and now it is time to go up again.
Joseph VilellaVectron Inc.Obviously, our industry has been hit hard by the economic downturn. However, we are still seeing a great deal of interest in our AOI technology. Even in difficult times like these, there is tremendous value in systems such as ours because they enable manufacturers to dramatically improve production efficiency while reducing their overall costs.
SMT: What does Mexitronica offer your company? Why are you going?
David YeeAgilent TechnologiesMexitronica is the most important event of the electronics manufacturing industry in Mexico. We feel our presence is required. It's an opportunity to meet with and support our customers and potential customers. It's one more way to tell our customers that Agilent has the commitment to work and grow in Mexico, whether the times are good or bad.
Agilent Technologies still believes Mexico is a good place to invest, even while we see some companies relocating to other regions. The companies who are maintaining their investments in Mexico must be very competitive to survive and then thrive in this new environment. Agilent is here to help these Mexico-based companies to become more competitive, improving manufacturing processes and quality, while reducing costs of manufacturing as much as possible. We want Mexico to be an important player in electronics manufacturing in the future. And we have the technology and experience to help our customers achieve their goals.
We have chosen Mexitronica to introduce the next generation of in-circuit fixturing technology that improves performance while significantly simplifying fixture maintenance, therefore reducing operating costs. This will give Mexican manufacturers an edge when manufacturing higher-complexity boards, which is part of the "new rules" I referred to above. At the same time we will show other recent products that help our customers remain competitive, including the Agilent SJ50 AOI system, which recently won the SMT Vision Award.
Jim SprayData I/O Corp.With the reorganization of manufacturing operations in Mexico, we are looking to partner with companies who are aggressively pursuing growth opportunities and want to optimize their processes.
Craig BrownDEKMexitronica is a great opportunity to build on our relationships in the market. Our sales and service delivery in Mexico is of the highest caliber and we like to use the trade show to provide demonstrations of our latest technology.
Rick ShortIndium Corp.We are in constant contact with the Mexican market via traditional methods. Mexitronica provides a forum for non-traditional meetings and contacts. Indium Corp. enjoys learning in this environment. In fact, we derive some of our most meaningful market and technology information during this type of event. From new product and service opportunities to the making of new customer contacts, Mexitronica delivers in a big way. Mexitronica is certainly the No. 1 electronics exhibition in the country -- so we value it highly, as can be judged by our continued strong support of the event.
Bob GiovannettiISMECA USA Inc.Mexitronica gives us the opportunity to address the market in Mexico directly rather than from a tradeshow outside of the country. We can invite our clients to a trade show close and convenient for them to view our equipment. Mexitronica also gives us an opportunity for a condensed market study of our customer's customer. A lot of our clients' customers manufacture in Mexico and visit Mexitronica.
Mario LebraoSiemens Dematic Electronics Assembly SystemsIn my opinion, Mexitronica is the most important show for SMT technology in the Americas. There is a very strong electronics manufacturing concentration in Mexico, and this show offers the best opportunity to meet with all key decision makers. As the No. 1 equipment supplier in the world, Siemens Dematic totally supports this show and our customers in Mexico.
Joseph VilellaVectron Inc.Electronics manufacturing in Mexico and throughout Latin America is truly world class. These sophisticated manufacturers are ready to reap the benefits that our AOI technology provides. The Mexitronica exhibition is an ideal forum for Vectron to reach out to those manufacturers and demonstrate what we can do for them.
SMT: What do you expect from this year's show as compared to last year's show?
David YeeAgilent Technologies We expect to see healthy but moderate participation from electronic manufacturer exhibitors this year due to the global economy. While there may be fewer people attending, we expect they will be highly knowledgeable and in decision-making roles. We do expect electronic manufacturers to come to this show looking for alternatives to reduce costs and become more competitive. We expect good results from those manufacturers because Agilent has what they need to succeed.
Jim SprayData I/O Corp.We expect less attendance but more key decision makers, with a focus on finding solutions that offer more competitive performance to their customers.
Craig BrownDEKWe anticipate having a significant number of detailed discussions with customers and prospective customers -- further cementing our relationships and building a strong foundation for business.
Rick Short Indium Corp.For 2002 we are looking to Mexitronica for deeper insight from the executives and engineers in the contract assembly market. Mexico is on the cutting edge of this industry -- so their insight complements our market research programs quite well. The experience of the Mexican market has produced skilled people with an excellent success rate for rapid and profitable plant start-ups. Indium Corp.'s exposure and involvement with these activities makes us a more valuable vendor, worldwide. And that strikes at the heart of what has made Indium Corp. so successful. Our people are very good at integrating valuable information from one area, and applying it to other areas. This provides both synergy and creativity, leading to increased business success.
Bob GiovannettiISMECA USA Inc.Last year the world economy was slow, and companies were in the "wait and see what happens" mode. I think this year the companies are ready to get back to production and will want to come to the show in force to see what is new in equipment and supplies.
Mario LebraoSiemens Dematic Electronics Assembly SystemsBecause of the market situation, last year we saw downsizing of booths and a reduced number of companies participating in the show, as well as a reduced number of visitors attending the show. However, this year we expect to have all companies back exhibiting again with a much larger number of visitors hungry for information and interested in solutions for the future. This show has to be a kick-off for the new upturn of the market and also a serious foundation to begin addressing the competition from China.
Joseph VilellaVectron Inc.This is our first time exhibiting at Mexitronica. We expect to see a broad range of serious customers who are dedicated to improving the productivity and cost-efficiency of their manufacturing operations.