SMT Prospects and Perspectives: AI Opportunities, Challenges, and Possibilities, Part 1
Nolan’s Notes: Do More, Get More
Global Sourcing Spotlight: Don’t Be Afraid of Global SourcingThe High Cost of Repair
January 8, 2024 | Nolan Johnson, I-Connect007Estimated reading time: 1 minute
When talking to the staff at BEST, Inc., there’s one key message: Not much has changed in the repair business, except for all the things that have changed. We spoke with Dan Patten, general manager; Laura Ripoli, customer service manager; and Nash Bell, president, to learn just how much the cost-benefit analysis is changing for their clients and their business. It’s safe to say that change for the good is in the air at BEST.
Nolan Johnson: What is the overall economics of having to do repair?
Dan Patten: One of the biggest challenges is the cost of repair. Unless it's the higher-end, Class 3 product, repair usually exceeds the value the manufacturers wish it would be. Ultimately, they want it not to need repair because they designed it that way. Usually, if there's a justification for repair, it means that the value is high, which means the parts are unavailable, or it will take too long to rework the boards. It's a time factor they're paying for—not necessarily the value—because the initial value of a robot throwing a bunch of parts on a board correctly is pennies. Anytime you open a repair, it starts at hundreds of dollars.
We find that no one is repairing Class 1 electronics. They're throwing them away and waiting for more, or they're replacing them with something higher—Class 1 or 2 plus. Automotive, medical, and aerospace usually hit Class 3. Everything below that is headed for the garbage can, or the manufacturer is using their own technician to touch it up.
To continue reading this conversation, click here.
This article first appeared in the January 2024 issue of SMT007 Magazine.
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