Interview with Michael Leedom, President & CEO of Semi-Kinetics
Semi-Kinetics is a leading provider of electronics manufacturing services, specializing in surface mount technology (SMT) and through-hole assembly. With a focus on innovation, quality, and customer satisfaction, Semi-Kinetics offers a comprehensive range of manufacturing solutions to meet the diverse needs of its clients. Leveraging state-of-the-art equipment, experienced personnel, and stringent quality control measures, Semi-Kinetics delivers high-quality products with unmatched precision and efficiency. From prototyping to high-volume production, Semi-Kinetics is committed to exceeding customer expectations and driving success in the electronics industry. We recently spoke with President & CEO Michael Leedom to find out more about the company and its strategy for success.
Semi-Kinetics has been a leader in electronic manufacturing services for decades. What do you see as the key drivers behind the company’s success?
Our sustained success stems from cultivating a customer-centric culture rooted in accountability, innovation, and long-term partnerships. While competitors may possess similar equipment and facilities, many falter due to a lack of cohesive culture and strategic vision. At Semi-Kinetics, we’ve developed a unique “family recipe” – a blend of values and practices – that emphasizes continuous improvement, proactive customer engagement, and a commitment to excellence. This approach has enabled us to build and maintain multiple high-performing facilities over the decades.
Our team is dedicated to anticipating customer needs, enhancing their experience, and fostering relationships that go beyond transactional interactions. This ethos not only drives growth and profitability but also results in remarkably low employee turnover because our staff is deeply invested in our mission and values.
Can you tell our readers about the company’s history?
Our journey began in 1982 when my father founded Product Technology Inc. (PTI) in our living room. I joined the company full-time in the early 1990s, focusing on sales and business development. Under our leadership, PTI grew to 350 employees and achieved $40 million in annual revenues. In 1998, PTI was acquired by Applied Power Worldwide (APW), where I continued for two years under contract, managing a 100,000-sq ft manufacturing space in Anaheim and generating over $50 million in sales.
In 2000, seeking to build something of our own, my wife and I established a new venture in Lake Forest, CA. Starting with a modest team and facility, we expanded operations, eventually relocating to a nearly 30,000 sq ft space in Irvine, CA. Our focus on the semiconductor, military, and aerospace markets propelled our growth to over 200 employees. In 2014, we sold the company to a competitor, but their misalignment with our culture led to its decline.
In 2018, we acquired Semi-Kinetics Inc., a standalone corporation in Lake Forest. At the time, it operated primarily as a volume job shop with limited process controls. Recognizing its potential, we revamped the entire operation, including equipment, processes, and software upgrades, to align with our vision of a high-reliability, customer-focused manufacturing facility.
How has Semi-Kinetics expanded and evolved over the years? What are your main priorities for growth moving forward?
Our primary goal post-acquisition was to transform Semi-Kinetics into a customer-centric, technologically advanced manufacturing facility. We invested heavily in state-of-the-art equipment, implemented robust process controls, and integrated advanced software systems. Our ERP system, developed in collaboration with business automation platform (BAP) Software, allows for unparalleled customization and control, enabling us to adapt swiftly to customer needs.
Today, all our equipment is networked to our systems, facilitating real-time data collection and analysis. This integration ensures high-quality output, efficient operations, and the agility to support high-mix, low-volume production environments.
How do Semi-Kinetics’ expansion efforts align with the increasing demand for advanced electronic manufacturing?
In the span of approximately 36-42 months, we’ve grown our revenues to over $30 million annually, serving more than 200 customers with a team of 125 employees. This growth was achieved without a dedicated sales team, underscoring the strength of our customer relationships and the quality of our services.
Our expansion includes the establishment of a sister facility in Idaho, designed to mirror our California operations. This strategic move allows us to double our capacity, introduce new technologies, and offer vertical integration to our customers. The Idaho facility will focus on conformal coating and box build electromechanical assemblies, complementing our existing services and supporting our goal of a balanced revenue split between box build and PCBA.
What role does automation and advanced machinery play in ensuring efficiency and precision in your production processes?
Automation and advanced machinery are central to our manufacturing strategy. Our Industry 4.0-driven environment leverages both hardware and software innovations to enhance production efficiency and quality. Real-time data collection through our ERP system provides immediate insights into key performance indicators, facilitating proactive decision-making.
We’re exploring the integration of artificial intelligence (AI) to further optimize our operations. By partnering with AI software developers and select customers, we’re developing systems that can predict capacity needs, identify quality issues, and perform root cause analyses, thereby enhancing our responsiveness and product quality.
Additionally, our team of 12-14 engineers works closely with both internal staff and customers to ensure adherence to quality standards and to support continuous improvement initiatives.
Quality engineering is critical in electronic manufacturing. How does Semi-Kinetics maintain the highest standards in production?
Quality is embedded in every aspect of our operations, from the moment a project is quoted through final shipment. We approach quality not as a department, but as a discipline that spans engineering, process design, and execution.
Our quality engineering team plays an active role across the production lifecycle, ensuring adherence to customer specifications, IPC standards, and internal process controls. We use statistical process control (SPC), failure mode and effects analysis (FMEA), and other predictive tools to proactively address potential issues before they reach production.
Because all equipment is networked into our ERP and data collection systems, we can analyze performance trends in real time, enabling faster decision-making and root cause identification. Additionally, our engineers collaborate closely with customers during new product introductions (NPI) to ensure design for manufacturability (DFM) and long-term reliability.
Our investment in both training and technology ensures that every operator, technician, and engineer is empowered to uphold the highest standards of quality throughout the manufacturing process.
With the rapid advancements in electronics, how is Semi-Kinetics adapting to meet the evolving needs of its customers?
Staying ahead of technological change is key to our value proposition. Our customers often push the envelope with their designs, especially in sectors like defense, aerospace, semiconductor, and medical. To support them, we prioritize agility and continuous innovation.
We’ve built a highly flexible manufacturing environment capable of adapting quickly to new technologies, tighter tolerances, and increasing product complexity. Our engineers are embedded in early product development discussions with customers, helping to guide DFM, supply chain strategy, and test planning.
In parallel, we invest in advanced machinery and smart software solutions that support high-mix, low-volume production while maintaining efficiency. Our adoption of AI, Industry 4.0 practices, and automated quality systems allows us to respond faster, scale with demand, and continually improve outcomes.
Ultimately, our role is to serve as a strategic partner, not just a vendor, by offering the technical depth, responsiveness, and infrastructure our customers need to bring their innovations to life
What challenges do you see in the electronic manufacturing industry today, and how is Semi-Kinetics navigating them?
One significant challenge is the rapid evolution of AI and its integration into manufacturing processes. Staying abreast of these advancements requires continuous learning and adaptation.
Another challenge is the knowledge gap among newer generations entering the workforce, particularly regarding the intricacies of manufacturing processes. To address this, we invest in comprehensive training programs to equip our employees with the necessary skills and understanding.
Labor shortages, especially in direct manufacturing roles, pose additional challenges. We mitigate this by fostering a culture that values continuous learning and by developing in-house training programs to build a skilled workforce.
Lastly, as equipment becomes more sophisticated, there’s a growing need for skilled operators. We advocate for stronger collaboration between equipment manufacturers and EMS providers to develop training programs that prepare operators to handle advanced machinery effectively.
What challenges do you see in the electronic manufacturing industry today, and how is Semi-Kinetics navigating them?
Our strategy involves continuous engagement with industry developments and close collaboration with our customers to understand their evolving needs. We don’t own proprietary products; instead, we focus on supporting our customers’ innovations. This requires us to be agile, technologically adept, and forward-thinking.
We also invest in partnerships with technology providers to integrate the latest advancements into our operations. By doing so, we ensure that our manufacturing capabilities align with the cutting-edge requirements of our customers.
What trends in the industry are you most excited about, and how is Semi-Kinetics preparing to capitalize on them?
We’re excited about the advancements in electronic warfare and the increasing demand for rapid NPIs in the defense sector. These developments align well with our capabilities in fast-paced, high-reliability manufacturing.
Additionally, the reshoring of manufacturing operations presents opportunities for growth. We’re receiving numerous inquiries about transitioning production back to the United States, and our facilities are well-positioned to accommodate these needs.
In the medical sector, the trend toward remote diagnostics and patient monitoring has led to increased demand for sophisticated medical devices. Our experience in manufacturing high-quality medical electronics positions us to support this growing market effectively.
By closely watching these trends and continuously enhancing our capabilities, Semi-Kinetics is poised to meet the evolving demands of the electronic manufacturing industry.
