Supply Chain Challenges
As 2023 looms, the global economy faces a third year of unprecedented social and economic challenges.
The PCB Connect Group analyses the year ahead for global supply chains with Global Sourcing Manager Justin Olejnik.
The global impact of coronavirus remains a cause for concern, particularly in China, whose Zero-Covid policy has come under increased criticism from inside the country, with unprecedented civil unrest highlighting the social and economic cost the virus continues to exert on people’s daily lives at a time China tries to energize its economy.
What does 2023 hold for the PCB Industry?
Justin Olejnik, PCB Connect Group’s Global Sourcing Manager –
While China unequivocally remains the global shop floor for electronics manufacturing, the Zero-Covid policy has increased discussions about the country’s ability to limit outbreaks as it heads toward winter and mass mobilization ahead of the new year celebrations. With lower immunity levels than those seen in the west and a growing discourse inside China as to the effectiveness of the current policy, our commitment to monitoring supply chain output and assessing the local conditions to ensure the safety and efficiency of our factory teams remains the PCB Connect Group’s key priority.
We continue to monitor the domestic economy, and while China’s productivity has dropped again in recent months, we have a robust supplier risk management process in place, which allows us to identify any potential risk at the earliest stage and take sourcing and management decisions in conjunction with our supply chain partners.
While we anticipate that the challenges inside China will remain throughout the country’s current coronavirus policy, we expect to see the domestic economy recover in the second half of next year with excess capacity reducing, leading to improved factory trading conditions.
Does the PCB Connect Group see opportunities in the supply chain outside China?
For many years the PCB Connect Group has offered a balanced supply chain for its PCB technology, working with key partners in Taiwan, Korea, and across mainland Europe. As the global economy has reacted to a post covid reality, the impact of increased logistics costs and reduced airfreight capacity has increased interest in alternative sourcing geographies.
With supply chains increasingly interconnected and global geopolitical tensions rising, the PCB connect Group has continued its long-held supply chain diversification strategy. We have seen interest in our diversified supply chain increase, notes Justin Olejnik; our customers are looking to balance the use of our factories outside of China as a compliment to the more traditional China factory base.
Increases in freight, greater interest, and an understanding of the need for more sustainable sources of supply have created a corollary whereby alternative sourcing geographies can now compete with China prices when the total cost of supply and supply chain risk management is considered. During 2023, we have added additional supply chain capability in regions where historically, there has been a great investment in PCB technology but where the cost delta with China has never allowed a realistic opportunity for customers.
We expect interest in these regions to grow as customers and consumers continue to reflect on the world they live in and demand greater provenance in the products they use daily.
The PCB Connect Group is a supplier of Printed Circuits Boards serving some of the most demanding applications and industries globally.
We are getting closer to the end of 2022
As 2022 begins to wind down, Johan Larsson, Managing Director of PCB Connect AB, reflects on the current market situation and looks forward to 2023.
We are getting closer to the end of 2022, a year of continued disturbances. A more stabilized pandemic has been replaced with a very changed situation in Europe with the war between Russia and Ukraine.
Even if we, as PCB Connect, have not been directly exposed, it is impossible to consider 2022 without mentioning the war between Ukraine and Russia. This is an event that both affects and leaves an impression on us as a company as well as individuals.
Looking at other challenges for the PCB Industry in the Nordics and Europe in 2022, I think it is relevant to point out risk awareness and logistics.
When it comes to Logistics, during recent years, we have been facing and overcoming several challenges, and continuing into 2022, the war between Russia and Ukraine led to a total stop for rail shipments between China and Europe.
This, in combination with continued difficulties related to sea transports, forced an even bigger focus on air Shipments. The Covid situation has also continued to cause difficulties in the logistical process relating to continued lockdowns in China and limitations in the transit between Mainland China and HK, resulting in more uncertain transport lead times.
For PCB Connect, we have, considering the circumstances, still been able to handle this in a good way via our Logistics teams, a network of transport providers, and our warehouses; we have been able to offer a high service and performance level while tackling changing requirements.
Today compared to before the pandemic, it is harder to plan logistical solutions in the long term, and more administration and resources are required to keep up with the same level of service and solutions.
We need to work in a very agile way to tackle sudden changes in conditions on a day-to-day basis. In our warehouse in Sweden, which operates as a central warehouse for distribution to the main part of Europe, we have increased the number of staff related to the extra administration needed in combination with the great growth we have shown in recent years.
During 2022 I think it has also become more relevant to consider the stability of the supply chain based on the type of events we have seen during recent years, which requires not only the consideration of backup solutions but also that there might be a need to plan your supply from different parts of the world to secure the supply chain.
We have seen this topic being raised and considered more often in discussions with our customers, and this also led to that PCB Connect during 2022 started a wider proactive evaluation of PCB producers in also other Asian countries than China to secure our customer's supply chain and enable PCB Connect Group the ability to offer a more diversified supply line.
Along with the continued shortage of semiconductors, demand planning for electronics manufacturing has become increasingly more difficult, and with the cost of rising energy prices continuing to impact manufacturers, having a flexible, adaptable, and responsive supply chain is of paramount importance.
With our factory-based management and inspection teams at PCB Connect, we continue to optimize our customer's production while bringing down the cost and quantity of the inventory they must hold in stock.
As we look forward to the new year, while global supply chains will undoubtedly continue to face pressures from the global economy and geopolitical events, there is much to be positive about, and we look forward to continuing to adapt to the ever-changing global marketplace that we operate in.
For more information on how the PCB Connect Group can become the obvious choice for your PCB requirements, why not contact us at sales@pcbconnectgroup.com
Embedding cooperative thought in your new PCB design materials selection
Embedding cooperative thought in your new PCB design materials selection may provide more significant benefits than you may think!
Because collaboration is a good thing.
It increases knowledge exponentially, reduces time to market, and ensures organizations access the latest thinking, building resilience and maximizing profit.
As it was known during the early 1970s, collaboration or participatory design originated in Scandinavia?
Its roots stemmed from the work of The Norwegian Iron and Metal Workers Union. Which created a project aimed at improving cooperation between management and union as a means of improving worker conditions, and streamlining decision making!
In true Scandinavian style, at the PCB Connect Group, collaboration is at the heart of everything we do. Working with our customers during the materials selection phase of a PCB design is one example of where cooperation can drive cost right from the earliest stage.
The correct specification of material, when considering high frequency, HDI, and products requiring multiple lamination cycles, is essential. An incorrect decision at the concept stage can lead to a lifecycle of poor yield, increased costs, and potentially becoming trapped in a less than optimal supply chain.
So how can collaboration help?
Play the long game.
When considering your new prototype, your domestic fabricator may prefer to use a premium material set ideal for low volume prototyping but may not be cost-effective in volume production due to availability.
Collaborating with potential volume producers at the outset ensures that they can check the lifecycle of the proposed material, the short to mid-term availability, and ensure that possible factories are certified to manufacture and release your PCB correctly.
If you specify a brand of material that is not readily available in your primary manufacturing location, you immediately lock yourself into longer lead times, higher costs through MOV's and potential certification issues.
What steps do I need to take before determining the most appropriate material for my application?
Temperature matters!
When considering suitable material systems, the TG of the material is essential. The TG or glass transition temperature indicates when the material becomes unstable, effectively moving from a solid-state to a semi-solid state. It is necessary at this stage that you consider not only the operating temperature of the PCB in its final native state but also the type of components to be placed on the PCB and the required temperatures the board will be subject to during the assembly process.
TG values for standard PCB materials increment from TG130, TG150 to TG170 degrees celsius, with each TG type having a higher cost attribute dependant on the value of the material specified.
Comparative Tracking Index (CTI) What is it?
CTI, or the comparative tracking index, measures the electrical breakdown properties of an insulator (PCB substrate), determining how close a pair of conductors or tracks can be positioned without the risk of energy leaking from one conductor to another when power is applied to the substrate.
The higher the CTI rating of the material, the more energy the PCB will withstand before energy leakage starts to occur, ultimately leading to short circuits between the pair tracks.
| Tracking Index (V) | PLC |
| 600 and greater | 0 |
| 400 through 599 | 1 |
| 250 through 399 | 2 |
| 175 through 249 | 3 |
| 100 through 174 | 4 |
| <100 | 5 |
Having considered the thermal regime that the PCB could be subject to over its lifetime, we turn our attention to the electrical properties of the laminate and, specifically, what is known as the Dk value or dielectric constant.
The Dk value of PCB laminates is essential when considering high-speed designs and especially products with impedance requirements. The dielectric constant measures the energy between a pair of tracks within the laminate compared to that pair of tracks if they were contained within a vacuum.
The Dk value for a vacuum is 1.0, with all other materials having a .higherDk value. A laminate with higher Dk value stores more energy than a laminate with a lower Dk value. At higher Dk values, energy flows slower through the tracks, making higher Dk laminates less suitable for higher speed applications.
So I have a new PCB design; what should my significant considerations be?
Ensure that you have selected an appropriate laminate system that meets the operating temperature requirements of your product in its final native form and understand the temperatures that your assembly facility operates at in assembling the product correctly.
Check that you have correctly modelled any impedance characteristics of the PCB relative to the Dk value of the material you are considering.
From a production standpoint, the primary consideration is to ensure that the fabricator you want to use has the correct underwriter laboratories approval to certify and use the PCB laminate you have under consideration. Manufacturing a production batch and finding that your factory cannot support UL approval can be a very costly exercise.
Check the lifecycle of the material either with your likely fabricator or directly with the material producer. Suppose your application has a requirement to provide ongoing products over an extended time frame; ensuring continuity of supply directly from the material producer may save you time and money if the laminate system becomes obsolete mid-way through a project.
Check that your fabricator has the correct UL approvals to certify and release the product in each territory that you expect to sell and distribute.
Understanding the critical aspects of a material's thermal and mechanical properties and collaborating with your PCB fabricator will ensure the lowest total cost for your new design and ensure that your PCB has multiple sourcing options at any point in its lifecycle.
For more information on materials selection and how the PCB Connect Group can support your materials decision-making process, why not contact us for more details.
Power Restriction in China
The universal challenge of containing a pandemic continues to be felt across the industry. For example, China reports that the current upturn in global economic demand led to energy consumption exceeding supply.
When China is pushing to demonstrate its global credentials, placing further control around the mining of fossil fuels, the strain on the existing resource and infrastructure becomes too much. Power limitations have increased over recent days, and total power outages are now frequent.
Whilst the cost to residential areas, particularly those in the colder North East of China, is high, there have also been consequences to industry, and electronic technologies, including those directly related to the further need for green energy technology.
With coal resources dwindling at the time of writing, electricity shortages are prevailing across the majority of mainland China.
These shortages are now impacting all industries. Consequently, economic observers are now considering the Chinese economy will grow by half of one percent less at 7.8% than had previously been forecast.
This energy deficit affects our factory base, extends lead times, and puts further pressure on the global PCB raw materials supply chain, which is already struggling to balance soaring demand.
- Our factory-based teams coordinate across all parts of the manufacturing process to deliver our order confirmations.
- Our factory teams notify of total power outages as practically and as soon as possible after the resumption of power, allowing a quicker understanding of which work orders could be affected and expediting upon resumption of power.
- We have daily meetings with senior factory management to confirm all planned regional government power shedding activity.
- We are putting extra resources to monitor known bottlenecks in production, watching the whole factory WIP, ensuring orders are progressing as smoothly and fast as possible.
- Identifying actors that could affect the likely number and severity of power outages by province we operate in and then using that data to quote new business from our factory based in regions that are likely to be less impacted.
Whilst the most challenging current conditions are in the North East. Suppose the countermeasures that the Chinese Government have put in place do not work in the concise term. In that case, this will likely start to become another significant Global Supply Chain shock with the potential to exceed the issue currently being experienced in many industries due to electronics components shortages.
Our customer teams will update you regularly on current lead times and your order schedules, allowing us to plan a conversation should you be concerned about the extent of your order schedules.
The Future of Logistics
The business world experienced the coronavirus pandemic. And the Logistics sector has been propelled to review its innovations that have been definitive over the 21st century. This pandemic has proved to be a catalyst on how B2B businesses move forward with their logistics. By being inclusive of sustainability and embracing new technology. What does the future of logistics look like for PCB Connect?
- Sustainable approaches
Every challenge comes with its opportunities. The world took a pause due to the pandemic. That had a dramatic impact on our environment. Roads became less congested and air pollution eased. The International Energy Agency estimates, that global greenhouse gas emissions will be around 8% lower this year as a direct result of the virus.
2. Managing risk with flexibility
PCB Connect understands that flexibility is important in ensuring that we are able to deliver quality PCB's to our customers. Being able to manage volatile demand and erratic supply interruptions have been an activity we have had a hands-on approach to, where we have been actively sourcing alternative means to supply our customers with their ordered PCBs
3. Future-Proofing Supply chain by utilising people and technology
Digital approaches are becoming an integral part of the supply chain and logistics processes. Our goal as an organisation is to be agile, adaptable and continue to learn as supply and demand conditions change. The world finds itself between a transformational phase. The future of logistics is top of the trend radar. PCB connect is excited to be a part of the evolution of logistics. We look forward to better servicing our customers.
Source: https://bit.ly/39GxbD2
Chinese New Year 2021: Are your PCB orders prepared?
The Chinese New Year Holiday is coming! From around February 11th to February 26th, our factories in China will be closed, which might affect the production of your printed circuit boards.
You can prepare yourself to avoid major supply chain disruption placing your orders as early as possible which covers the production volumes for at least the coming months. The most important thing is to secure your PCB production.
Together we will plan the best solution for your needs!
Our teams are prepared to help you to set up your requests and answer any doubt that you may have! Do not hesitate to contact your local PCB Connect office for further information about lead time and recommendations for your order planning.
Other Chinese Holidays to be aware of in 2021:
- Chinese New Year, 11–26 Feb 2021
- Labor Day, 1–3 May 2021
- Dragon Boat Festival, 14–16 Jun 2021
- Mid-Autumn Festival, Tue, 21 Sep 2021
- National Day of the People's Republic of China, 1–3 Oct 2021
- Golden Week, 1–7 Oct 2021
Exhibition Shanghai: our successful participation
PCB Connect participated in one of the largest exhibitions in China.
At the beginning of July, our team in China participated in Electronica China in Shanghai, one of the largest innovative electronics manufacturing exhibitions in the world.
According to the exhibition’s sponsor, this year saw almost 82000 visitors. The world is in a different place at the moment due to the Covid-19 pandemic and the whole team were prepared to meet visitors with all safety measures in place. “Everyone, visitors included, were required to show a green QR code to prove their health status, ID cards and body temperature were checked when entering the hall. During the exhibition we all wore face masks and kept a safe distance apart”, said Clare Zhang, Sales at PCB Connect China.
Visitors were able to discuss PCB Connects products, PCB production capabilities, their own products as well as meet our sales representatives. The exhibition was a great success!
Check the photos below:
PCB Connect Group COVID-19 Update: Major Airlines imposing unprecedented freight surcharges.
PCB Connect Group Manufacturing Operations.
Updated July 1st:
The PCB Connect Group supply network across Asia remains operational, with capacity recovered and normalized. We continue to work to reduce post shut down backlogs and delays.
The Manufacturing capability has been fully recovered, but transports are still affected. Still we see that this disruptive effect is now “post-peak” due to a combination of slowly recovering capacity and reduced load.
We keep monitoring logistics capacity from Asia due to Covid-19 and will continue to select the most appropriate mode of transportation and best deliveries ways for all products working in agreement with our customers.
Please, contact your sales representative if you have any questions.
Updated March 24th:
- The PCB Connect Group continues to follow all relevant domestic legislation & guidance across all of its businesses to ensure the safety of its employees and their families as its primary responsibilities.
- The PCB Connect Group supply network across Asia remains operational, with capacity continuing to recover and normalize. Our factory based FQC and management teams have returned to work and are working to reduce post shut down backlogs and delays.
- We are moving to flexible work arrangements worldwide outside of Greater China. All team members are working remotely wherever possible, and in those instances where work requires them to be on-site should we are following all guidance to maximize personal space.
- The PCB Connect Group is in the process of identifying opportunities to increase resilience within its global PCB Supply Network to minimize supply chain disruption from future global pandemics.
- We continue to monitor imbalances of logistics capacity from Asia due to Covid-19 and will continue to select the most appropriate mode of transportation for all products working in consultation with our customers.
Updated March 18th:
In light of the continued spread of COVID-19 exponentially across Europe, the PCB Connect Group is monitoring all aspects of its supply chain operations in ensuring a safe as possible environment for its employees and extended partners as its highest priority.
Our manufacturing network across Asia continues to recover from the initial outbreak of the COVID-19 virus, and available capacity and lead times are continuing to normalize. We will continue to follow the recommendations of the local authorities in China working in conjunction with our partners during this time.
Our factory management team in China continue to report available capacity within our core facilities daily against the backdrop of our total order book, and total capacity needs, and we are working with our partners to increase productivity and throughput on an ongoing basis.
PCB Connect Group Operations.
As a global business, we are following the advice as set out by national authorities and governments. This has meant that we have implemented a work from home policy in some cases, and we have moved to strengthen our IT infrastructure to enable seamless operations as far as possible. We will continue to act prudently and cautiously in ensuring that our employees and their extended families' health remains our number one priority. As of today, our ability to support customers with the level of communications and services you have come to expect of the PCB Connect Group remains unchanged.
As the Coronavirus continues to spread outside of mainland China, we are starting to see the first impact on logistics movements and routes into Europe.
Air Freight
As is being reported in the media, many airlines have or are in the process of canceling flights from mainland China & other major hubs across Asia.
This reduction in cargo capacity has led the majority of airlines to announce today, that they are imposing extraordinary freight surcharges on all new shipments from these origins.
The PCB Connect Group is currently working to understand the implications of these surcharges.
We are working with our logistics partners to enable full transparency in addressing the requirements of our customers and will continue to select the most appropriate logistics solution, balancing timely customer deliveries against the backdrop of these unprecedented increases in freight cost.
Sea Freight
Key terminal operations in China are continuing to normalize, however, our partners are still managing high levels of congestion due to COVID-19 and the Chinese New Year shut down. Whilst the situation for shipping electronics hasn't been as affected as for those who are shipping refrigerated goods, the decline in manufacturing output within China has seen carriers continue to announce so-called “blank sailings” or cancellations. The PCB Connect Group has a long-held strategy of shipping sea freight products out of Hong Kong, which has thus far not been as badly affected as some ports in mainland China.
Express Air Freight Shipment.
Our key express shipment partners continue to operate as close to normal schedule at this moment and we are continuing to monitor cargo availability closely.
Reducing the impact to Customers.
The spread of COVID-19 has and will continue to impact on the PCB Connect Group's ability to meet some of its previously stated commitments to customers. As a business, we are fully focused on minimizing these disruptions, utilizing our global production network, as well as assessing and acting upon the most effective method of delivering products to customers. We anticipate that these disruptions will continue during March, and we are committed to continuing to keep customers updated regularly.
We are encouraging customers wherever possible to increase their supply chain planning horizons through this period by continuing to place orders, and we will work with customers to balance out these supply chain disruptions as far as possible.
If you have any questions, please contact us!
PCB Connect Group
www.pcbconnectgroup.com
PCB Connect at Electronica China Exhibition in July 2020
PCB Connect will attend Electronica Exhibition in Shanghai in July 3 to 5
Electronica Shangai is one of the biggest exhibitions in the world for innovative electronics manufacturing.
Visit PCB CONNECT at the booth 6.2 D216!
International Trade Fair for Electronics Development and Production
July 3–5, 2020
| Opening hours | Visitors | |
|---|---|---|
| Friday, July 3, 2020 | 09:00–17:00 | |
| Saturday, July 4, 2020 | 09:00–17:00 | |
| Sunday, July 5, 2020 | 09:00–16:00 |
Check our Exhibitor Page here in Electronica website.
Address:
National Exhibition & Convention Center (Shanghai)
North Gate: 333 Songze Avenue; West Gate: 1888 Zhuguang Road; South Gate: 168 East Yinggang Road; East Gate: 111 Laigang Road
PCB Connect expands with new office, new employee and open new Company in Denmark
Due to PCB Connect’s successful growth in Denmark, we now decided to invest further in the Danish Market. We are very glad to announce both new employee, new and bigger office location as well as that we will have a Danish company PCB Connect A/S registered.
We see it very positive that we now have taken the step to open a registered company in Denmark. The new office, located near the center of Aalborg, is very suitable for the organization, both based on our current team as well for further expansions in the future.
PCB Connect welcome and present a new Internal Sales Engineer to the team in Denmark, Casper Michelsen. Casper has a solid background within Internal sales positions and that combined with his technical experience makes him a very good fit for the position.
“We have been searching for a new team member, so we are very happy to have Casper on board. We strongly believe in our potential and possibilities to expand further in Denmark, so even if the future is extra hard to predict due to Covid-19, we still decided to expand and invest in the Danish market", say Johan Larsson, Managing Director from PCB Connect.
“I am very happy about our new office here in Denmark, and it’s a great place to work. Even with the Covid-19 situation, there are many orders and requests coming in and the PCB market in Denmark didn’t stop” Says Casper Michelsen.
