Spring has arrived, and with it comes a burgeoning trade show schedule. Nepcon West, APEX, PCB Design West, CPCA-all were held within a six week time span. What follows are some reviews of these events. They offer snapshots-both figuratively and literally-of the industry at work and play.

Advertisement

China is just slightly larger than the U.S. in land mass but has almost five times our population (1.3 billion people). As China moves more of a "free market" economy, overall GDP growth is averaging close to eight percent annually (twice the U.S.), and its PCB industry is expanding rapidly.

From March 19-24, 2000, the China Printed Circuit Association sponsored its CPCA Technology and Information Forum followed by the CPCA 2000 Trade Show in Shanghai. The consensus opinion of the attendees was that this was the best CPCA trade show ever-well attended both by exhibitors and show visitors.

Chinese PCB Market
Supported by approximately 1,000 fabricators, China's PCB shipments are growing at over fifteen percent annually, with year 2000 sales expected to approach $3 billion. Discussions at CPCA 2000 continually focused on the massive capacity expansions occurring to support not only consumer electronics but also personal computers and mobile phones. Major U.S. PCB companies, including Viasystems (Kalex-Termbray acquisition), Parlex, and Flextronics/Dii/Multek, have facilities in China-where $200/month wages support low PCB manufacturing costs. However, Taiwan's investment in the PRC's printed circuit industry far exceeds U.S. investment. Per Dr. Hayao Nakahara, "There were already 56 Taiwanese PWB manufacturers, mostly small, operating in China before larger ones such as Wus and Unitech established manufacturing bases in the Shanghai area. Now, Compeq, Unicap, and World Wiser Electronics are also in China. Taiwanese operations in China will soon account for more than 30 percent of PRC production, judging from their current production capacity there."

Technology and Information Forum
CPCA 2000 began Sunday, March 19, 2000-an auspicious day as it was also the day of the presidential elections in Taiwan. The first event was the Technology and Information Forum-a full day of presentations. Attendance for these papers was excellent; well over 200 attendees filled the room. Topics included "Market Trends and Global 'Green' Issues," by David Bergman of the IPC; "Recovery of Abandoned PCBs (Recycling)," by Shen Zhigang of Beijing University; "Measurement of Warp and Twist in PCBs Using Shadow Moire Technology," by Patrick Hassell of Akrometrix; "Technology Trends in PCB Imaging," by Karl Dietz of DuPont i Technologies; "HDI Technology," by Frank Bai of the Taiwan Printed Circuit Association; and "World PCB Market: Size, Scope and Electronic Equipment End-Markets," by Walt Custer of Custer Consulting Group (a copy of my charts can be found at www.custerconsulting.com under "presentations"). Concurrently, Constantino "Tino" Gonzalez of Acme Inc. conducted a workshop on "Acceptability of Electronic Assemblies."

As a speaker, this was an excellent forum-the facilities were good, the CPCA staff members were all very helpful, the audience was attentive and asked many good questions, and the translation by Ms. Helena Li, Sales Manager (PCB Division) of American Tec Co, Ltd., made all the U.S. speakers jobs much easier. And special thanks to Ms. Sally Lin (Lin Luhua), deputy secretary general director of the CPCA, deputy director of CPCA International Intercommunication Council, and vice president of Shennan Circuit Corp., who is also. Sally was the main interface with the U.S. speakers. She and the rest of the CPCA staff made us feel very welcome and ensured that all details were correct.

Joint Trade Organization Activities
Monday, March 20, involved a day of joint meetings between the CPCA and Japan Printed Circuit Association, with participation from the IPC, TPCA, and others. Ron Underwood, president and CEO of Circuit Center Inc. and Chairman-elect of the IPC, Vice President of Technology and Standards David Bergman, and Project Manager Jane Koh represented the IPC in these meetings. A key topic was how the PCB various trade organizations could work together for common good.

Trade Show On Tuesday, March 21, the CPCA Trade Show (Ninth International Printed Circuit and Surface Assembly Exhibition) opened. The floor was packed with exhibitors and visitors. Although the vast majority of the booths represented local companies, U.S. and European firms-including Pluritec, Olec, Luther & Maelzer, Schmid, Shipley, DuPont, Degussa, Circuit Automation, Advanced Chemill Systems, Bürkle, Alfachimici, MacDermid, Union Tool, Mania, Orbotech, Enthone-OMI, Englehard, Multek, M&B Plating Racks, Coates, Electro Scientific Industries, International Supplies, Cadillac Plastics, Colight, Teknek, Cimnet Systems, and others I am sure I missed-were all active on the show floor.

Tuesday evening included a CPCA-sponsored reception and dinner with special addresses by the CPCA, JPCA, IPC, and TPCA executives. The trade show (and some golfing) extended until Thursday.

In summary, it was a great show and a wonderful visit to Shanghai, the fast growing business hub of China. Special thanks to Mr. Mo Shao-shan, chairman and general manager of the CPCA, and his entire staff for a job well done.

APEX Proves It's a Legitimate Contender By Steve Gold

The assembly trade show scene bears some similarity to our nation's Republican Presidential primary race earlier this year. You have Nepcon, with it's organizational clout and trade-show savvy, in the George Bush Jr. role vying against APEX, a John McCain-like upstart trying to appeal to the grassroots rank-and-file with a common-sense approach. The only difference is that this race might have a different outcome than it's political counterpart.

The IPC launched its assembly conference and exhibition, APEX, and by most accounts it was a success. APEX capitalized on the formula that has been so successful for IPC's Printed Circuits Expo-quality attendees, strong technical conference content, and stringent exhibitor cost-containment rules.

Brisk Business
Exhibitors were upbeat, touting the quality of the 5,700 attendees. Attendance was fairly even across the three days, though Wednesday seemed to be the busiest day. Though IPC was proud to have every major pick-and-place company exhibiting, not all the exhibitors were strictly assembly-related companies. There were quite a few familiar names that do business in both assembly and fabrication. Christopher Associates President Matt Holzmann reported brisk business on the show floor. Orbotech booth representatives concurred, saying the quality of attendees was excellent. Even booths with less desirable booth space, like the 3M booth set up in the far corner of the main exhibition hall, were pleased with the traffic. "I thought the show was very well run. . . . We have already signed up to participate next year," said 3M's Larry Toshinski.

Not all of the 337 exhibitors, however, were happy. Some exhibitors-including several fabricators-were relegated to an arena attached to the convention center. The walkway between the main show floor and the arena may have been daunting, because the arena had a noticeably lower volume of attendees walking the floor.

Two exceptions to this rule were Intelligent Reasoning Systems, which had a constant flow of visitors interested in their new automated optical inspection machine, and LPKF, a laser structuring company that was busy as well. Other arena exhibitors, however, thought their placement weakened their sales opportunities. It's pretty safe to assume Long Beach is too small a venue for future assembly exhibitions.

IPC President Dennis McGuirk was happy with his organization's inaugural APEX show. "I had the opportunity to walk the show floor each day of the exhibition. I spoke with many attendees and exhibitors and received very encouraging comments about APEX," he said. "From all the positive feedback, I believe that our goal to provide a fair, focused and cost-effective show was accomplished."

More than a Shopping Spree
There was more to APEX than its 141,000 square feet of exhibition space. The conferences were well received. This could be a significant advantage in the APEX-Nepcon decision that the industry is faced with; IPC is renowned for its world-class technical conferences.

APEX had three keynote sessions. The first keynote speech was given by Retired General Norman Schwarzkopf. He lectured a very large crowd on the qualities inherent in good leaders. His commanding presence, engaging anecdotes, and biting sense of humor were a strong prelude to APEX.

The second day's keynote session featured CircuiTree columnist J. Keith Dunne of Robertson Stephens. He gave an update of how Wall Street views the EMS industry, 55 percent of which is U.S.-based. Management depth, breadth of products and services, customer diversification, end-market exposure, economies of scale, and acquisitions integration are all key components for both large assemblers and fabricators alike.

One intriguing point was Dunne's take on e-commerce; he claimed that "greater integration of e-commerce is necessary" if the industry is going to continue to succeed. He said dot-com companies must be reckoned with, pointing out that PCB007.com already had "$1 billion of manufacturing power" already lined up for its e-commerce objectives.

Dunne also had optimistic words for smaller companies, saying, "There's always going to be thousands of players" in the EMS industry because they are "active, nimble" players. Another analyst, John Gallop of First Union Securities, also gave his view of the industry; he generally echoed Dunne's findings, though disagreeing with some of the numbers.

The final keynote session was called "Titans of the Supply Chain." A sparse crowd gathered to hear supply chain practices from industry leaders. This session had difficulty living up to the promise of its title. Though the moderator began by stating margins are tighter than ever during a time of unprecedented economic growth, not one panelist addressed that issue. Many spoke about what their companies are doing to improve supply chain logistics, but talk of margins was taboo. Another problem with the session was that it did not address where the "non-titans" of the supply chain fit in, which is what most IPC member companies are.

The panel, however, did do a good job making one point perfectly clear: new supply chain models are emerging because the old ones don't work in the present economy. Viasystems' Barry Brigman, representing PWB fabricators, spoke about increasing consortium efforts and of the importance of local manufacturing within a global business model. He also questioned whether the "old distribution model" still works, claiming his company is more of a "program manager" in its emerging business model. Motorola's director of R&D observed, "From an OEM standpoint, the old models don't work" for supply chain management. He called for "an integrated effort." An excellent idea, but one that is not likely to come to fruition until value becomes more important than price in the evolving electronics supply chain.

Speaking of supply chain concerns, one of the more enlightening conversations we had at APEX was with Jim McElroy, executive director of NEMI (National Electronics Manufacturing Initiative). His organization is focused on improving the supply chain and making its members more competitive. The idea is to flow all electronics industry roadmaps into one master plan. Boards, components, assemblies, OEM end-products are all forecast in the NEMI roadmap.

McElroy explained that NEMI teamed with IPC to kick off its 2000 roadmap effort. He estimated 140 people representing over 60 OEMs, contract manufacturers, fabricators, equipment vendors, materials suppliers, universities, and government agencies were at the Long Beach launch. The relationship between NEMI and IPC is getting stronger as NEMI collaborates with ITRI to understand where fabrication and assembly is heading. It is currently working with ITRI on a board finishes project.

NEMI was born as a response to fears of losing electronics industry business offshore. McElroy explained, "There wasn't anybody bringing together the North American industry. There wasn't anyone doing it." The NEMI roadmap helps identify technology gaps between electronics industry forecasts. The end-result is improving business. "You can't just look at technology gaps," McElroy affirmed. "You have to look at business."

Tough Fight Ahead?
While most of the APEX exhibitors we spoke with expressed intentions to re-sign with the show, the future is uncertain. One thing is certain-the industry cannot support two major assembly trade shows. Something has got to give. Word on the floor was that Nepcon organizers are preparing a counterattack. IPC had better prepare itself to make sure it doesn't finish this race the way John McCain did last March.

Trade Show Beauty Contest
Commentary by Fred Friedman

Two assembly trade shows-Nepcon West 2000 (Reed Exhibitions) and APEX 2000 (IPC SMEMA Council)-were held exactly two weeks apart in Southern California. Both aimed at attracting the same group of attendees, with Nepcon generally attracting smaller exhibitors previously overshadowed by the giant pick-and-place production line exhibitors.

Nepcon West, the earlier show, had some significant advantages at the outset. It had the reputation of being the most professionally executed show in one of the best halls in the country (Anaheim Convention Center). This year the show was very quiet-too quiet. Historically, many regarded the show's reputation as the leading venue for assembly as unchangeable. This year, far from complacency, Reed continued supporting such innovations as the Technology Advancement Center (TAC Line) to demonstrate assembly feasibility. In addition, they positioned various stand-alone pavilions on the exhibit floor featuring specialist-exhibitors-including PCB fabricators demonstrating microvia fabricating capabilities.

Box Score:
This year, there were 855 exhibitors, including thirteen PCB fabricators and 24 contract assemblers. At show's end, 410 rebooked for next year. A significant number of exhibitors indicated that they would see how things went at the APEX in Long Beach before making any commitments.

APEX, played on exhibitor irritation (real or imagined) with past Nepcon "arrogance." Other factors contributing to APEX support were exhibit-cost reduction as well as loyalty to trade association organizers. The major pick-and-place equipment exhibitors, hoping to control their trade show environment on more advantageous terms, joined with the IPC hoping to begin a new trade show tradition. There was plenty of glitz with the massive dog-and-pony-show displays of the assembly line vendors and a 6,000 guest Gala (which included a lit up Ferris wheel).

But the event had some handicaps to overcome: it was new, its exhibit hall was modest-sized and located in a city (compared to Anaheim) that had poor motel support for attendees.

Box Score:
APEX attracted 355 exhibitors, including eight PCB fabricators and thirteen contract manufacturers, along with about 5,700 attendees. About one third of the PCB fabricators interviewed expressed some disappointment, but with a few exceptions, most agreed they would consider re-booking for next year. Wait a minute! Next year, Apex will be held January 16-18. This should present a major timing decision for both attendees and exhibitors.

Cinderella's Revenge
What can a limited-sized trade show do when its big sisters clearly outspend it? It can offer to feature 28 PCB companies. In its tenth year, PCB Design West held in Santa Clara, Calif., is threadbare when contrasted with its big sisters. But its modest head-count obscures its major value: head-count quality.

Its audience is clearly focused on serious PCB problems faced by OEM designers "on the firing line". After ten years, the show still retains its popularity. At show's end, every one of the PCB exhibitors have either rebooked for next year or awaiting home-office approval.

Let's hear it again. Year after year at this show, I have told PCB exhibitors that they need to identify their displayed boards more clearly. Beautiful as many are, their most admirable features are not obvious. A 16-layer board looks the same as an 8-layer board viewed from above. The solution is easy. Use string price-tag labels to highlight the major features of their "silent salesmen." As an added benefit, the labels make very small PCBs theft-proof. Adhesive labels on the boards can also do the job. Make it easy for the displayed PCBs to sell the technology of the PCB maker.

Trade Show Costs
In 1999, both exhibitors and attendees were forced to go through an intensive cost-benefit analysis about the value of visiting or exhibiting in Productronica, TMRC, NEPCON West, APEX, TPCA, CPCA, JPCA, and so forth. Benefits are often nebulous no matter what the show-a score of variables could influence them. But costs, as the bean-counters put it, are measurable and should be easier to forecast and control.

True or not, many claimed that exhibitors were attracted to APEX solely by the benefit of a lower dollar-per-square-foot exhibit cost. How foolish! How about the costs of exhibit stand construction, drayage, time to erect the stand, sales personnel to staff the exhibit, car rental, motel, air fare, and time away from general duties? Exhibit cost per square foot is minor in comparison. On the other hand, does chasing the benefits justify extravagance? How many PCB orders will come from a glitzy gala? Indeed, how many attendees will come to a trade show because of razzle-dazzle show biz?

What is the answer? Here's one response from our survey of crowded exhibits: "Fun is OK. But spend the resources making sure that key existing and potential customers actually come to the exhibit. Mailing an invitation to visit is a good start, but remember to make a follow-up reminder phone call. To make the potential visit productive, spend the time, money, or effort to prepare something original, unusual, or detailed to make the floor visit interesting. This part is often overlooked. . . . Finally, the investment in preparation also sharpens the sales pitch to random visitors."