Isola is a material sciences company that develops and manufactures laminate materials that are used to fabricate advanced multilayer printed circuit boards. The company has a global footprint, with manufacturing and research centers in Asia, Europe and the U.S. Jeff Waters joined Isola as president and chief executive officer in January (2016).
Jeff, you’ve been with Isola for about four months. No doubt, it’s been a period of intense learning, like drinking from a fire hose. How would you distill all that you’ve learned into an elevator speech that describes Isola?
What undeniably sets Isola apart is our global footprint. We are the only laminate supplier in the market that has R&D, manufacturing and technical support in Asia, North America and Europe. If executed correctly, this presence should enable our customers to get to market more quickly and to transfer their products to volume production more reliably, at world class costs. We’ve reoriented our company around this potential and are already making great strides in delivering this value to our customers.
As you’ve learned about the company and its capabilities, what impresses you?
In addition to the global footprint, I’d have to say I’ve been most impressed by the experience and the energy of our people. Our field engineers typically have decades of experience in laminates and PCB fabrication and are invaluable assets to our customers. They have a great passion for what they do, and their reputations typically precede them. Our R&D and manufacturing teams are filled, as well, with a wealth of experience and proven success. Our head of R&D, Ed Kelley, and our head of global operations, Matt LaRont, are both great examples of this. And across the company, there’s a genuine passion for Isola and a great pride in what we do. It’s this passion that’s at the foundation of our growth.
As you've noted, Isola is a global company. While it’s not unusual for companies to manufacture outside the U.S., you also have international R&D centers. What’s the thinking behind that strategy?
Our international R&D teams take advantage of their proximity to market leaders. For example, in Europe we partner with the automotive market leaders on their most aggressive needs. In North America, we partner with the leaders in cloud computing. In Asia, we cover many markets, but increasingly are working with the local ecosystem and PCB fabricators to develop lower cost products. The proximity we have to these leaders with local R&D dramatically enhances the innovation process, enabling faster time to market. It’s a key element for Isola that will increasingly separate us from the rest of the market.
Where does RF fit in your overall “market” strategy? How do the opportunities for RF applications compare with the other markets you serve?
As a technology innovator, we look for growth markets with aggressive and constantly increasing requirements. Given that, RF in automotive, communications and mil-aero applications are a perfect fit. It helps, as well, that they also bear similarity to technology requirements in the high speed digital space, which only increase the attractiveness of the market opportunity.
For RF circuits, the characteristics of the printed circuit board are integral to the circuit design and performance. Yet the PCB is pretty low on the supply chain and is often taken for granted. That puts you in something of a box: your customers demand consistently good performance and low cost. How does your business address those conflicting expectations?
Part of what makes this industry so fun is that there are so many dimensions to “good” performance. There are elements related to the service model, like product breadth, quick-turn production and low risk transfers. There are elements related to product characteristics, like electrical, mechanical and thermal properties. Then, as you mention, there’s the element around cost. In the RF space, “good” performance is pushed across most of these dimensions, and it plays well to our product capabilities — like our Astra, I-Tera and IS680 products — and to our global footprint. We can deliver and develop quickly, whether the customer is in Europe, North America or Asia, and we can produce at world class low costs when they need it most at volume in Asia. Despite the aggressive multi-dimensional push, it’s a profitable business for us.
A somewhat related question: Since the PCB is often treated as a commodity, how do you develop and maintain relationships with your customers, so you know what they need and you can tell the Isola story?
We have R&D, manufacturing and best-in-class technical support in Asia, North America and Europe. We are where the OEMs have their engineers, and we’re there with native speakers who can collaborate 365 days a year in the same time zone. No one else has that, and that is of great value to the OEMs and to their PCB fabricator partners.
Considering the uncertain global economic environment, the ongoing consolidation of the electronics industry, Isola’s financial goals and the unique perspective you bring from your career, what priorities have you defined for the company to take advantage of the opportunities and avoid the threats?
We have the products, factories and people to be the only worldwide laminate partner to market-leading OEMs and their PCB suppliers. Given this, it’s all about enabling that capability and executing. Plain and simple. That means executing with existing products, where we are taking share with more aggressive pricing in markets we used to ignore. That also means executing on new products and getting back to being a technology leader — we’re growing share here as well. This share growth has already gotten us back to strong financial health — and when you grow via market share, you become more impervious to market uncertainty.
Finally, on a more personal note: You’ve had a very successful career, beginning in a wafer fab as a process and test engineer, serving in a variety of roles domestically and internationally, now president and CEO. How have you navigated such a career? How much was intention versus serendipity?
I’d break it down into three parts:
The first, which I would say was very intentional, is my background. Early in my career, I knew I wanted to be a CEO. With that in mind, I continually put thought into my career development and into the experiences I would need to give me the best shot at becoming a great CEO. That led me to a broad range of roles in manufacturing, research, product development, sales and marketing — and, as well, to pursue jobs that were overseas.
The second is more serendipitous, and it’s that I’ve been continuously surrounded by great people in great companies — they have made the journey both successful and fun.
The last, but by no means least part, is that I have been blessed with a great wife who has been incredibly supportive of my career aspirations. She orchestrated multiple work-related relocations (including a few overseas), provided financial support through grad school and has also been the primary caregiver to our three children. I’ll consider this last part an equal mix of intention and serendipity!