Diversification: Where Do You Grow From Here?

Estimated reading time: 2 minutes

Our industry has long operated on a relatively straightforward formula:  invest in equipment, build a solid production team, develop reliable manufacturing processes, and compete for business based on quality, delivery, and price. If a shop maintained strong relationships with customers and consistently delivered dependable work, there was every reason to believe the business would continue growing steadily for years.

In many ways, this model built the modern PCB industry. But the environment surrounding electronics manufacturing has changed dramatically, and I am concerned that many U.S. domestic fabricators have not fully adjusted to these changes. Too many companies operate as though the industry still revolves entirely around producing bare boards, when the market has evolved into something far more complex, integrated, and demanding.

Today, simply being good at fabrication is no longer enough to guarantee long-term success. In fact, if you are defined solely as a fabrication provider, you place yourself in an increasingly vulnerable position. It is extraordinarily difficult to succeed in a global market dominated by price pressures, rapid technological change, automation, and sophisticated customer expectations.

Domestic fabricators are competing against manufacturers the world over, many of which operate under dramatically different labor structures, government support systems, and cost advantages. With the prevalence of automated online quoting systems and digital procurement platforms, engineers and buyers are uploading designs, comparing suppliers, and receiving pricing from multiple sources faster than ever before. This lends to the perception that a bare PCB is more of a commodity than a specially manufactured custom part, and this reality has fundamentally changed the economics of PCB fabrication.

One may argue total value proposition, but in a global sourcing economy, price inevitably becomes the dominant factor in the equation. For U.S. domestic manufacturers, unless you are strongly aligned with government military and aerospace contracts, the battle is difficult to win. Margins tighten, relationships become transactional, and inevitably, loyalty weakens. Every quote is turning into a race to the bottom.

To continue reading this article, which appeared in the July 2026 I-Connect007 Magazine, click here.