PI Invests $60MM in Vertical Integration, Equipment, and Supply Chain

The PI Group – globally known for its leadership in high precision motion control, automation, nanopositioning and piezo technology solutions – has started a comprehensive initiative to invest in the future. As the whole industry experiences a tight global supply situation, PI is taking decisive steps to get ahead of the curve.

Image Credit: PI (Physik Instrumente) LP

PI is focusing on global growth markets such as Semiconductors, Photonics, Industrial Automation, and Life Sciences that all benefit from the company’s advanced technologies. The initiative includes investments of nearly $60 million, in several locations around the world, all geared to increase productivity, expand production capacities, and optimize the whole supply chain. As a rapidly effective measure, together with customers, PI is also developing long-term plans regarding specific delivery quantities and schedules.

Additionally, PI keeps on hiring more specialists – by the end of 2022 PI will have grown its employee count by more than 30% compared to the beginning of 2021.

"The pandemic has rapidly accelerated growth in our innovation-driven markets", explained Markus Spanner, CEO of the PI Group. "Developments that usually could have taken ten or more years, were now achieved in just two years." The result is unexpectedly strong growth, throughout all the market segments covered by PI.

"We are doing everything we can to fulfill our customers’ wishes regarding planning security and on-time delivery, even in the short term", emphasized the CEO. "For this reason, last year PI already increased production of its high precision automation and nanopositioning systems as well as piezoceramic components by 30 percent compared with the previous year. However, this is still not enough considering that incoming orders are growing even faster. With our different measures, we are trying everything to alleviate shortages in the short term, and, in the mid-term, provide considerably higher capacities."

Inner-Company Investments of close to $60 Million

With their considerable investments, PI is following two goals: Optimizing existing capacities and creating new ones. For this, a combined budget of close to $60 million was assigned for 2021 and 2022. Moreover, the company can afford to invest this amount from their own resources. Following the production growth of over 30% in 2021, the capacity will increase by another 30% in 2022. This will mainly be possible through digitalization, for example, by rolling out Industry 4.0 principles. From 2023, additional production lines will be added.

Vertical Supply Chain Integration

Moreover, PI has strengthened its Supply Chain Management. The focus is on identifying and setting up regional supply chains. The company is also setting up an ePortal to enable faster and better communication with suppliers, and, therefore, vertical integration of the supply chain to increase capacity while maintaining sustainability.  

Long-Term Planning Secures Actual Demand and Improves On-Time-Delivery

To take the pressure off the delivery situation in the short term, PI is developing long-term plans together with numerous customers, where the actual demand determines the delivery dates and quantities. This enables a more forward-thinking planning of manufacturing schedules and capacity. ”With this, our customers benefit from both just-in-time advantages and long-term security of supply of PI’s high quality components and systems." emphasized Markus Spanner. ”Thanks to our customers, suppliers, dedicated employees, and our investments in developing our capacities, we have come up with a comprehensive range of measures to improve on-time delivery."  

Source: http://www.pi-usa.us/en/

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