Kimball Electronics Stock

Kimball Electronics, Inc. (Kimball Electronics) operates as a global, multifaceted manufacturing solutions provider.

The company provides electronics manufacturing services (EMS), including engineering and supply chain support, to customers in the automotive, medical, and industrial end markets.

The company delivers a package of value that begins with its core competency of producing durable electronics and extends to contract manufacturing services for non-electronic components, medical disposables, drug delivery solutions, precision molded plastics, and production automation, test, and inspection equipment. The company’s design and manufacturing expertise coupled with robust processes and procedures help the company ensure that the company delivers the highest levels of quality and reliability throughout the entire life cycle of the company’s customers’ products.

The company delivers service across its global footprint with an operations platform driven by highly integrated procedures, standardization, and teamwork. The company’s Customer Relationship Management (‘CRM’) model is key to providing the company’s customers convenient access to its global footprint and all of the company’s services throughout the entire product life cycle.

Many of the company’s customers are multinational companies operating across multiple global regions, and they maximize their supplier relationship by partnering with the company for engineering, manufacturing, and supply chain support across multiple locations and regions. The company commonly manufactures the same product for the same customer in multiple facilities. Coupled with the company’s CRM model and the company’s global systems, procedures, processes, and teamwork, the company’s strategic approach to expanding the company’s global footprint aligns with the company’s customers’ preferences in the company’s three end market verticals.

The company manufactures products for its customers at facilities located in the United States, China, Mexico, Poland, Romania, Thailand, and Vietnam. The company also has operations in India and Japan.

The company offers its services globally on a contract basis, and the company manufactures products to its customers’ specifications. The company’s services primarily include production and testing of printed circuit board assemblies (PCBAs); full box build manufacturing and assembly; final assembly of medical electronic products; design services and support; supply chain services and support; rapid prototyping and new product introduction support; product design and process validation and qualification; industrialization and automation of manufacturing processes; reliability testing (testing of products under a series of extreme environmental conditions); aftermarket services; production and assembly of medical devices, medical disposables including packaging, and other non-electronic products; drug delivery devices and solutions with and without electronics; class 7 and 8 clean room assembly, cold chain and product sterilization management; design engineering and production of precision molded plastics; design engineering and manufacturing of automation, test, and inspection equipment; software design; and complete product life cycle management.

Segments

As of June 30, 2023, all of the company’s operating segments provided contract manufacturing services, including engineering and supply chain support, for the production of electronic assemblies and other products, including medical devices, medical disposables, precision molded plastics, and automation, test, and inspection equipment primarily in automotive, medical, and industrial applications, to the specifications and designs of the company’s customers.

Business Strategy

The key elements of executing the company’s strategy include leveraging its the company’s global footprint; expanding the company’s package of value; and expanding the company’s markets.

Business Offerings

The company offers electronics manufacturing services, including engineering and supply chain support, to customers in the automotive, medical, and industrial end market verticals. The company further offers contract manufacturing services for non-electronic components, medical disposables, precision molded plastics, as well as production automation, test, and inspection equipment. The company’s services support the complete product life cycle of the company’s customers’ products, and the company’s processes and capabilities cover a range of products from high volume-low mix to high mix-low volume. The company brings complete design solutions to its customers.

The company offers Design for Excellence input to its customers as a part of the company’s standard package of value, and the company uses sophisticated software tools to integrate the supply chain in a way that provides the company’s customers with the flexibility their business requires. The company’s robust new product introduction process and the company’s extensive manufacturing capabilities give the company the ability to execute to the various quality and reliability expectations of the company’s customers in each of its end market verticals. The company is committed to protecting the planet by combating climate change, including contributing to a lower carbon future, in the company’s operations, its value chains, and in the services the company offers to its customers.

The company’s strategies include actions to optimize the company’s manufacturing facilities and processes for sustainability, increase clean energy in its purchased power mix, collaborate with the company’s customers and supply chain to address upstream and downstream carbon emissions, invest in clean energy solutions for climate protection, and develop low carbon products, technologies and services. The company values its customers and their unique needs and expectations.

Marketing Channels

Manufacturing services, including engineering and supply chain support, are marketed by the company’s business development team. The company uses a CRM model to provide the company’s customers with convenient access to the company’s global footprint and all of the company’s services throughout the entire product life cycle.

Customers

While the total electronic assemblies market has broad applications, the company’s customers are concentrated in the automotive, medical, and industrial end markets. Beginning in fiscal year 2023 (the year ended June 30, 2023), the company changed its presentation of revenue for the industrial and public safety end market verticals by combining them into the industrial end market vertical. The company’s customers are Nexteer Automotive, Philips, and ZF.

Intellectual Property

The company maintains trademark rights (including registrations) for ‘Kimball Electronics,’ ‘GES’ and other wordmarks and trademarks that the company uses in its business in the United States and around the world.

Competition

The company’s competition includes EMS companies, such as Benchmark Electronics, Inc., Flex Ltd., Jabil Inc., Plexus Corp., and Sanmina Corporation.

History

Kimball Electronics, Inc. was founded in 1961. The company was incorporated in Indiana in 1998.