Moving forward together: André C. Haiber on the future of electronics manufacturing
elbe gruppe supports customers throughout the entire product life cycle—from development to manufacturing and logistics. What are the benefits of this end-to-end approach?
Haiber: Our broad range of expertise reduces the number of service providers our customers need to manage, simplifies interfaces, minimises the risk of errors and speeds up project delivery. Flexibility is key to our approach: we don’t always have to do everything. Instead, we fill the gaps each customer has in a particular project or product. The scope of our services can also change over time. In this way, we help build the technology leaders of tomorrow and support them continuously.
Artificial intelligence is currently transforming many areas of industrial production. Where do you see the greatest tangible benefits of AI for EMS providers, and where does human expertise remain indispensable?
Haiber: AI can deliver a tremendous boost in productivity. For example, machines can review, analyse and process large volumes of data much faster than people. AI can support us and reduce our workload—for instance, by generating automated notifications and suggestions. This allows us to focus human expertise on areas we do not want to, or cannot, leave to AI. On the one hand, there are specific decisions—whether operational or strategic—that still need to be made by people. On the other, there are the relationships we build with our customers and all other stakeholders. We are convinced that these relationships are especially important in an era of advancing digitalisation and AI.
How can an EMS partner help make products easier to manufacture, test and scale by getting involved during the development phase?
Haiber: The earlier we get involved in a project, the better. Even if a customer develops a product entirely without using our development services, the rest of our team welcomes close collaboration with the customer’s development team. This allows us to bring a DfX mindset into the customer’s project and ensure that we “design backwards” from the outset—in other words, that factors such as manufacturability, durability and sustainability are given due consideration. Close coordination throughout development lets us influence many aspects for the better—things that are often no longer possible when a product is submitted for contract manufacturing only after design freeze.
Component shortages and volatile markets are prompting many companies to consider how to build more resilient supply chains. How does elbe gruppe help its customers stay supplied and flexible?
Haiber: The most important thing is to have realistic expectations. No EMS provider—neither us nor anyone else—can change the global market for printed circuit boards or electronic components. This is particularly true in Europe, which, as a sales market, no longer plays a particularly significant role in the international competition for components and manufacturing capacity, for example among semiconductor manufacturers. Instead of making false promises such as “We can solve every problem and take care of everything for our customers”, we take an honest, multi-stage and collaborative approach.
First, during the design phase of an assembly, components should be selected not only based on technical suitability—which is, of course, non-negotiable—and price, but also with the supply chain in mind. Choosing components that are readily available and have several qualified alternatives wherever possible creates flexibility that can be used later. We support our customers in this with decades of expertise combined with state-of-the-art software tools.
Second, it is important—for the customer, for us, for distributors and for manufacturers—not to place orders only to meet short-term needs once stock has already run out. Instead, we need to develop and maintain a long-term demand forecast together, supported by long-term framework agreements, safety stock and similar measures. We also advise our customers closely on this and work with them to find tailored solutions. This makes the shared supply pipeline more resilient to unpredictable fluctuations, giving us time to respond if supply chain disruptions occur.
The third stage is responding to unexpected disruptions—swiftly, but with preparation. You could call it firefighting when things really start to burn. That is much easier if the previous stages have been handled well. We have a team of outstanding “firefighters” who have already passed many a baptism of fire and can guide customers through such crises with confidence and expertise. Software tools and direct IT connections to our suppliers also help us respond quickly.
It is important to understand that all of this works really well only when the customer recognises that the task is a team effort and contributes accordingly. If customers share as little information and make as few commitments as possible, while expecting the EMS provider to shoulder the entire burden, there is comparatively little we can do. In that case, we are more or less limited to stage three: responding to urgent problems.
How do development, manufacturing and testing need to work together to ensure quality, traceability and process reliability throughout the product life cycle?
Haiber: As we have already discussed, the EMS partner should be involved during the development phase—including both the manufacturing team and supply chain experts—to help design a product that can be manufactured optimally throughout its life cycle. Testing is a natural link between development, manufacturing and quality assurance, so it should also be considered from the very first development steps—not only once the first prototypes come out of the reflow oven.
That is exactly why we bring all disciplines together under one roof. Our development team, manufacturing—including the testing department—project managers, who look after our customers and manage procurement, and all quality functions are literally just an office or a flight of stairs away from each other. Close collaboration is second nature. Regular coordination meetings during development, and especially at critical milestones such as the start of production, help us work proactively and preventively. Clearly defined communication and decision-making processes, such as cross-departmental kick-off meetings, also ensure fast feedback loops. This means that insights and opportunities to improve quality can be incorporated quickly, without creating time or cost risks.
Sustainability is becoming increasingly important in electronics manufacturing. What levers can the industry use, and what contribution is elbe gruppe making?
Haiber: Sustainability is a fundamental mindset and is not limited to environmental issues. It is about ensuring that we can continue doing what we do over the long term without undermining the very foundations on which we depend. For the electronics industry, this means using all kinds of resources responsibly—raw materials and energy, but also, in our view, social resources—and considering the impact we leave on the world in every respect.
We have already made significant progress on the “classic” sustainability issues, such as reducing CO_2 emissions and improving environmental performance. Our sites operate ISO 14001-certified environmental management systems, have calculated their carbon footprints and are working on ambitious CO_2 roadmaps that will bring our Scope 1 and 2 emissions down to an absolute minimum within the next few years. We have already implemented measures such as on-site solar power generation, switching to LED lighting, electrifying our vehicle fleet and using 100% renewable electricity for the remaining power we draw from the grid. One of the next major steps on our roadmap is replacing our existing gas heating systems with heat pumps, which we are planning to do over the coming years.
elbe electronic and electronic concept have brought their expertise together in elbe gruppe. What new opportunities does this create for customers, and what developments will shape electronics manufacturing in the years ahead?
Haiber: For the customers of the two formerly separate companies, the merger means a broader portfolio of expertise, greater capacity for larger projects, a better ability to respond to trends and new requirements, and an even stronger focus on our mission: to accelerate the progress of today’s and tomorrow’s technology leaders and help them develop and manufacture innovative products that address the major challenges of our time. We have received a lot of positive feedback. We also welcome suggestions for improvement, and we are seeing great enthusiasm—both among our partners and within our team—for elbe gruppe’s action-oriented transformation strategy.
In the years ahead, we expect further consolidation in the industry, including some vertical integration, although Europe still lags behind other continents in this respect. At the same time, the continuing “permacrisis” will affect both supply and sales markets. While the global EMS market continues to boom, Europe has to fight to keep pace—and, more than that, to regain international influence. Clear strategies, agile and flexible implementation, “radical forward thinking” and close collaboration across the value chain will all be just as important.
In our view, it is important to understand that the “old EMS world”, as we knew it particularly before the COVID-19 pandemic, is not coming back. That is not to say that the pandemic caused all the changes. Rather, we are experiencing an epochal shift in the 2020s towards a new market dynamic and logic. We want to shape what comes next rather than simply manage the status quo. That is why we are moving forward consistently and with a focus on opportunity, instead of lamenting the past.
What can visitors expect at elbe gruppe’s stand at EFX, and what questions should they bring to Stuttgart?
Haiber: In the spirit of collaboration, we have opened our stand at EFX to two important partners. Together with Frickly Systems and Würth Elektronik, we will show how, as a flexible team, we develop and manufacture high-quality hardware “right here”—in Germany and Europe—for our customers. We want to contribute to what we believe is a much-needed tech renaissance. This is not a nostalgic look back at past greatness, but a bold drive towards new possibilities. Our stand is all about innovation, speed and the excitement of trying something new. That is reflected in the stand design, where, for EFX’s debut, we have stepped away from familiar approaches and let ourselves get a little carried away… but I can’t reveal any more just yet.
Visitors are welcome to come to us with any questions; we always enjoy exchanging ideas. We are particularly well placed to support those developing new products or improving existing ones, and looking for deep technical expertise combined with plenty of drive and a genuine enthusiasm for collaboration. We look forward to new challenges that we can tackle together to help our region become more successful.
That, in our view, is exactly what EFX stands for: a new sense of purpose for electronics manufacturing in Central Europe—fast, collaborative, technically excellent, ethical and sustainable, and yes, cost-conscious too, without being cheap.
We’re looking forward to a hopefully packed hall and three days of inspiring conversations full of ideas and energy.
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