EMS@C-LEVEL
As Forbes, Entrepreneur, Fast Company and SCOOP writer, Philip Stoten, continues to talk to EMS (Electronic Manufacturing Services) executives he learns more about their individual and collective experiences and their expectations for their own businesses and for the entire electronic manufacturing industry.
EMS@C-LEVEL
Uncertainty Has Become The Only Certainty - EMS@C-Level with IMI CEO Lou Hughes
Lou Hughes, President and CEO of IMI, brings us inside the evolving world of global electronics manufacturing where uncertainty has become the only certainty. From his perspective leading a major EMS provider through turbulent times, Hughes shares candid insights about how companies are adapting to constant disruption.
The conversation opens with a frank assessment of tariff uncertainties and their paralyzing effect on customer decision-making. "I think our customers are totally frustrated by the whole situation and everybody is just frozen in place," Hughes explains, highlighting how geopolitics directly impacts manufacturing strategies. This uncertainty creates a challenging business environment where planning becomes increasingly difficult.
What emerges as particularly fascinating is Hughes' articulation of a fundamental industry paradox: customers demand manufacturing flexibility across regions to mitigate geopolitical risks, but resist paying the premium required to maintain that capability. "To say you're fast and flexible is one thing, but to truly be able to deliver that to a customer at a competitive price they expect is completely different," Hughes notes. This tension between flexibility and cost efficiency represents perhaps the central challenge facing global manufacturers today.
Hughes then reveals IMI's strategic response - consolidation around "super sites" rather than maintaining numerous smaller facilities. He explains how the company recently sold its Czech facility while expanding operations in Serbia, believing that "fewer bigger sites" improve competitiveness by controlling overhead costs. Similarly, IMI's Mexico operations have become its busiest location for new product introductions, particularly attractive to customers seeking tariff advantages under current trade rules. This practical approach to balancing global presence with operational efficiency offers valuable lessons for navigating manufacturing in an increasingly unpredictable world.
Ready to dive deeper into the realities of global manufacturing strategy? Listen now to understand how leading manufacturing companies are redesigning their operations to thrive amid constant change.
EMS@C-Level is sponsored by global inspection leaders Koh Young (https://www.kohyoung.com) and Creative Electron (https://creativeelectron.com)
You can see video versions of all of the EMS@C-Level pods on our YouTube playlist.