From Acquisition to Achievement: The InCap US Manufacturing Journey with MD Dave Spehar

Manufacturing landscapes are constantly evolving, and few understand this better than Dave Spehar, Managing Director of InCap's US operation. Speaking from the Creative Electron booth at APEX 2025, Dave offers a candid look at the post-acquisition journey since July 2023 that has propelled their business to record performance.

Cultural alignment emerges as the cornerstone of their successful integration. "We had a very good match with the InCap culture, where it's more of an entrepreneurial spirit within the company," Dave explains. This compatibility has allowed them to maintain their operational identity while leveraging the resources of a global organization. From enhanced purchasing power to IT infrastructure support, the benefits of joining a larger family have been substantial without sacrificing the core values that made them successful.

Timing couldn't have been better for this strategic move. With increasing tariff uncertainties and market volatility, having US-based manufacturing capabilities has become a competitive advantage. Their specialization in industrial applications, gas detection systems, and IoT devices continues to see robust demand. Meanwhile, the talent challenge looms large across manufacturing – something Dave addresses through a dual approach of strategic automation and positioning as an employer of choice. "We want to get more efficient with some automation... but at the end of the day, we've still got to rely on that talent," he notes.

Perhaps most telling is the accelerated investment trajectory since the acquisition. Dave reveals they've invested more in the past year than in the previous five years combined, with another significant investment year ahead. This focus on maintaining state-of-the-art facilities and technologies positions them to exceed customer expectations in the challenging high-mix, low-volume manufacturing space. 

EMS@C-Level Live at APEX is sponsored by global inspection leaders Koh Young (https://www.kohyoung.com) and Creative Electron (https://creativeelectron.com)

EMS@C-Level is hosted by global inspection leaders Koh Young (https://www.kohyoung.com) and Global Electronics Association (https://www.electronics.org)

You can see video versions of all of the EMS@C-Level pods on our YouTube playlist.

Transcript

Introduction to InCap's US Operations

Philip Stoten 0:08

Hello , I'm Philip Stoughton . I'm at Apex 2025 . Today we're on the Creative Electron booth and I'm joined by David from InCap . David , you're the Managing Director of the US operation . Came in via the acquisition , correct , Correct . In via the acquisition , correct , Correct . Tell me about the not so much the acquisition but the integration process . I think NCAP have a bit of a unique culture . They like to have fun .

Dave Spehar, Managing Director of InCap's US operation 0:39

They like to allow autonomy within that group . Is that something that's suited you ? Yeah , it has . I think it's been a very successful integration since July of 23 . I think you know one thing that Otto mentioned . I know when they look at their M&A strategy , you know it's not only about the financials and some of the other normal metrics that you look from an M&A perspective , but it's also the culture

Cultural Integration Post-Acquisition

Dave Spehar, Managing Director of InCap's US operation 0:57

. Yeah , absolutely , and I think from our perspective we had a very good match with the NCAP culture , where it's more of an entrepreneurial spirit within the company , and it was a pretty good fit . Aside from a little bit more structure maybe on some headquarters requests and things like that , pretty much we're the same company . We've always been .

Philip Stoten 1:20

Yeah , and some help with maybe some of the larger structural things .

Dave Spehar, Managing Director of InCap's US operation 1:25

I think global purchasing is always a big add value yeah we really see ourselves now as just part of a bigger family that has a lot more resources from that perspective . So we can rely on some of the expertise of the other managing directors , as well as the sourcing or the IT perspective , where definitely should get some economies of scale .

Philip Stoten 1:45

Yeah when I think of a successful acquisition , I always think of two things , first and foremost . One is the culture fit , because you can solve everything if your cultures are aligned

US Manufacturing Footprint Advantages

Philip Stoten 1:54

. But the second is timing . Acquisitions are all about timing and you know , you're close to close to two years in . We find ourselves in a position where having some manufacturing footprint in the US is , I don't want to say essential , but it's definitely very important At the moment , with the changes , regular changes in tariffs , we don't know how important . Do you see that as a really significant part of kind of the success of what's happened with ?

Dave Spehar, Managing Director of InCap's US operation 2:23

you , I do . I think , from a timing perspective it was , it was almost perfect , you know . I mean , I think you really can't call yourself a global EMS till you at least have some presence in the US market .

Dave Spehar, Managing Director of InCap's US operation 2:34

Obviously they're the biggest and I think , from a timing perspective , ncap hit it right where you know they purchased us in July and you know we had a record year last year from that perspective and there's still a lot of uncertainty out there , as Otto mentioned . But I think there's some opportunities there for us to maybe capitalize on some of that and continue to grow so .

Philip Stoten 2:56

I'm pretty happy . So when you look at the US I mean I guess many of your customers are in the US , but they're also global accounts that come in as a result of the in-cap ownership when you look at those customers , do you see markets that are doing particularly well at the moment ?

Dave Spehar, Managing Director of InCap's US operation 3:13

here . Yeah

Talent Challenges in Manufacturing

Dave Spehar, Managing Director of InCap's US operation 3:15

, I mean , a lot of our customers are still more just industrial and gas detection and things like that and the business is strong , still very , very strong from that side . Several of our customers are in advanced meter reading type businesses and IoT . So it's going very well yeah .

Philip Stoten 3:36

And you two were at the Leadership Summit . I thought what was interesting was the keynote , and the first session was all about talent . That's something that's challenged the industry in various different locations . They're in India , where talent is much more readily available , but they're also in the US , where talent can be a challenge . How important is it to have a strategy to grapple that problem ?

Dave Spehar, Managing Director of InCap's US operation 4:02

Yeah , I mean , I think , as in any business really , when it gets down to it , it's your people , you know , and that's definitely a challenge . You know , part of the reason why we're here at the show is that there's a lot of automation out there . It's a little more challenging when you're a low , mid-volume , high-mix CM , but at the same time , we're always looking to have a balance . We want to get more efficient and with some automation we can do that . But at the end of the day , we've still got to rely on that talent and try to be an employer of choice within our local area , because you can't do it without your team and arguably that's why we do . It is because of our team .

Philip Stoten 4:41

Yeah , and that again plays into that culture thing . Is because of our team , yeah , and that again plays into that culture thing . Interestingly , I think that idea of automation and how you use AI and all those things in a high-mix , low-volume thing is a challenge , but it's a challenge that your vendors have to shape up and deal with , because it's not just you , is it ?

Dave Spehar, Managing Director of InCap's US operation 5:01

No , it's everyone . Everybody's playing the same game , so to speak , and you know you have to compete for that talent . And you know obviously a lot of the companies here see opportunities that if they could figure out a way to help us become more efficient , you know they're going to try to sell that and you know if it works for us , then obviously we'll be looking to be a customer .

Philip Stoten 5:25

Yeah , that then . If it works for us , then obviously we'll be looking to be a customer . When you think of your path forward now you're part of the NCAP family

Investment Strategy and Future Growth

Philip Stoten 5:31

. Maybe more access to capital , access to expansion . If you want to do that , are there plans in place to grow that perhaps you wouldn't have been able to do previously ?

Dave Spehar, Managing Director of InCap's US operation 5:41

I think this year we probably , or this past year , we invested more than we have probably in the last five years prior to that .

Dave Spehar, Managing Director of InCap's US operation 5:49

So I think NCAP's philosophy of making sure you have a state-of-the-art factory and you're keeping up on the technology and the processes and the equipment are all part of that , and I think this year will be another relatively large investment year for us to continue to be ready for what our customer needs , because at the end , we're here to exceed their expectations and we want to be prepared for that when the request comes .

Philip Stoten 6:15

Yeah , and if you can increase your capacity and your capability and you can do all that without having to extend the headcount and the talent pool too much , that's absolutely the way to go Absolutely .

Dave Spehar, Managing Director of InCap's US operation 6:27

That's definitely one of the keys in this environment , for sure , yeah .

Philip Stoten 6:31

David , thanks for stopping by . Absolute pleasure to chat and we'll chat again soon . You're welcome . Thank you very much for your time . Appreciate it , thanks .