After decades of decline, the United States government is serious about restoring its manufacturing capacity. Sweeping government efforts, supported by the lobbying of American companies, have sought to strengthen the defense industrial base by reducing U.S. dependence on foreign suppliers, especially untrustworthy competitors like the People’s Republic of China (PRC).

Breaking this dependency is challenging, largely because the U.S. government is pushing against market forces. It is almost always cheaper, and often much faster, for engineering companies to manufacture in the PRC. American companies often struggle to manufacture without generous subsidies from the U.S. government.

This does not mean the U.S. is doomed to rely on the PRC or other global suppliers. On the contrary, American entrepreneurs should see this as an opportunity. The U.S. has a comparative advantage in innovation and entrepreneurship. Pain points indicate an opportunity for savvy entrepreneurs to innovate a solution.

TILT’s experience with U.S.-based manufacturing of Printed Circuit Board Assemblies (PCBAs) has illustrated the challenges and opportunities for U.S.-based manufacturers. We see tremendous potential for disruption of the PCBA industry. In this post, we will lay some of our pain points and a vision for a new kind of PCBA company. 

Challenges and Opportunities in PCBA Manufacturing

TILT Autonomy produces autonomy hardware, including custom Printed Circuit Board Assemblies. We design boards in-house, then send the design files to contract manufacturers for production. 

PCBA manufacturing has been increasingly concentrated in the PRC, which has drawn special attention from the Department of Homeland Security Manufacturing PCBAs in the PRC is faster and cheaper than in the U.S. TILT is committed to manufacturing in the U.S. for government clients, but this makes it vitally important to trim costs and timelines in every way possible. Outdated practices in the PCBA industry make that a challenge, but we see a wide-open opportunity for PCBA manufacturers to do better.

From quote delays to Instant orders

Challenge: When designers submit design files for quotes, U.S.-based manufacturers often take weeks to respond with quotes. Most lack an integrated, modern, electronic shopping cart system and rely on manual processing. This delay is costly, particularly given the inevitable back-and-forth discussions over design tweaks. 

Opportunity: The E-Commerce sector has developed proven models for “instant buy” websites, partly to address cart abandonment problems. Automation can dramatically accelerate purchasing, even for custom designs destined for production. In today’s world customers can upload designs for graphic design products, merchandise, or even print-on-demand books. Their designs are approved or rejected in minutes. A savvy entrepreneur could disrupt PCBA manufacturing with this same approach.

Automate design validation

Challenge: Much of the back-and-forth with designers and PCBA manufacturers is due to ambiguity about tolerances and specifications. The manual validation process requires conversations about details like component tolerances, drill sizes, or number of layers.

Opportunity: PCBA manufacturers could use web-based forms for specifying tolerances and other design choices right from the start. This approach would automatically resolve most details within the first moments of placing an order, eliminating the need for follow-up emails and preventing missed callouts. Software could automatically detect critical specifications from design files—such as the number of layers or minimum drill sizes—and simply ask for customer confirmation. 

Streamline Communication with Clarity

Challenge: Most PCBA manufacturers rely on traditional email exchanges to refine designs about complex technical designs. 

Opportunity: Manufacturers could communicate using collaborative design platforms, allowing designers and manufacturers to jointly visualize the board, make annotations, and propose and see changes. Users could make adjustments directly within the interface, eliminating the need for additional interactions. This would enhance efficiency and clarity, creating a smoother, more intuitive process.

Tighter coupling with parts suppliers

Challenge: Board designers lack integrated tools to assess part availability and pricing. Hardware engineering teams spend considerable time manually sourcing parts from countless vendors and individually contacting those vendors to discuss pricing. This labor-intensive process costs time and money and means that U.S. companies likely miss opportunities to find the best deals. Companies also lack automated tooling to monitor their supply chains for component shortages or end-of-life notifications. Uncertainty over component availability and pricing also exacerbates the back-and-forth between PCBA designers and manufacturers.

Opportunity: Customers should be able to upload a Bill of Materials (BOM) and instantly see supply chain implications of their designs, to include possible suppliers and pricing for all parts. Customers could see at a glance how pricing would vary with purchase quantity, which is critical for companies aiming to scale. While some part suppliers have hesitated to offer APIs, fearing cheaper sourcing tools, TILT envisions a future where these barriers are overcome. An integrated supply system could also issue alerts when parts are running low or approaching end-of-life, enabling companies to stay proactive with their designs in a dynamic market. An integrated tool like this would also help PCBA manufacturers track inventory and availability, stockpile where needed, sell surplus components, and stay ahead of the market.

Play Chess on the Checkers Board

Imagine a future where PCBA manufacturing isn’t just about “keeping up with China” but rather leading the way with smart strategies. 

The challenges faced in re-shoring PCBA manufacturing in the USA are clear, but so are the opportunities for transformative change. The current practices, characterized by outdated manual processes and long lead times, are ripe for disruption. 

By embracing automation, streamlining communication, and fostering tighter integration with parts suppliers, the industry can significantly reduce friction and improve efficiency.  Companies that prioritize speed, clarity, and customer-centric approaches will thrive in this evolving landscape. The future belongs to those who can simplify complexity and deliver instant, reliable solutions.

Rather than trying to beat the PRC at its own game, maybe U.S. manufacturers need to play a different game. It’s all about turning the traditional checkers game into a strategic chess match, positioning your business for success with innovative, customer-focused solutions.