logo

NN, Inc.

Q42023

3/12/2024

speaker
Harold
Chief Executive Officer

existing capacity versus capacity we don't have, and a combined effort to be more competitive and be able to win at a higher rate. So that's the game plan. It's still, you know, we're winning right now in the quarter, and, you know, we're on track with our comments that we're making here. So it's, knock on wood, still gaining momentum.

speaker
Rob
Analyst

Okay, excellent. That was a great overview. And then lastly, on the medical segment, you want to program there in good progress. How do you see that business developing over time? I think you said it was a 2025 sort of timeframe where that really kicks in, but maybe just help understand the steps that that segment takes to go here.

speaker
Harold
Chief Executive Officer

Yeah, it's a good question. It's been, it's one that, you know, it's the Shielding and Connector One, we were in it to a minor degree, as I mentioned, in our legacy business, and now we're basically upsizing something that was there. In the case of the new medical non-tool market, it's a startup, and so we had to hire a commercial leader, Willie Beach, who came from competition. We had to hire an engineering and quote leader, Tim Dunham, who came from a competitor. We had to hire a medical plant manager. Brian Barton, who came in operationally. So we had to generate a team from scratch, and then we had to focus in on what customers we were going to go call on and what products we were going to sell them and what plants we were going to make them in. We have medical certifications at four plants right now. We're expanding it to eight. And when we're getting into our RFQs, we're being careful to note Say it has seven processes, seven manufacturing processes, on the five where we are competitive and the two where we're not competitive, and then gathering this and having pattern recognition about what we want to do about it and what equipment we might want to consider buying. We have some initial thoughts. We know that we need to buy what's called gun drills, which are deep boring, high tolerance drills. We didn't need those so much in the automotive business, if you will, but it's a item in the medical arena. And then on the stamp products, it's about getting certifications and an expanded product line. So we have a weekly meeting. We're going logically. We're not trying to rush out and waste money or waste time. So we're trying to build up to a $50 million business. That's what we've all embraced our goals around, and we have an initial five-year plan to get there. So we don't think it's going to add too much to this year, Rob, in 24, unless something happens that we're not expecting. But we are beginning to win business, and you have to go through all the customer certifications. So it's a little bit longer lead time, and so I think that in our results, it'll start showing up in 25.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

-

-

Investor presentation