Jabil Circuit

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Jabil Circuit, Inc.
Type Public
Traded as NYSEJBL
S&P 500 Component
Industry Electronics Manufacturing Services[1]
Founded 1966 (1966), Detroit, Michigan, United States
Founders William E. Morean and James Golden
Headquarters St. Petersburg, Florida[2], United States
Number of locations 23 Countries Worldwide[3]
Area served Worldwide
Key people Mark Mondello, CEO[4]
Tim Main, Chairman of the Board[4]
William E. Peters, President
William D. Muir,Jr., COO
Revenue Increase US$ 18.3 Billion[5] USD (2013)
Operating income Decrease US$ 511.4 Million[5] USD (2013)
Net income Decrease US$ 371.4 Million[5] USD (2013)
Total assets Increase US$ 9.1 Billion[5] USD (2013)
Total equity Increase US$ 2.3 Billion[5] USD (2013)
Employees 177,000+[6]
Website Company Website

Jabil Circuit, Inc. is a US based global manufacturing services company. Headquartered in St. Petersburg, Florida, it is one of the largest companies in the Tampa Bay area.[7] and the third largest contract manufacturer in the world. Jabil has 90 facilities in 23 countries, and 175,000 employees worldwide.[3]

History[edit]

The company's name derives from those of its two founders, James Golden and Bill Morean, who founded the company in 1966. Jabil was incorporated in 1969. An early product was PCBs.[2]

In the 1980s, the company was making parts for PC companies like Dell,[2] and this continued through the mid 1990s.[8]

The company went public in 1993.[9] In 1998, Jabil began trading publicly on the New York Stock Exchange under ticker symbol JBL.[10] The company was added to the S&P 500 Index in 2001.[11]

On March 1, 2013, Jabil appointed William E. Peters as President and William D. Muir, Jr. as Chief Operating Officers. Both had been with Jabil for more than 20 years. On the same day, Mark Mondello was appointed to CEO, replacing Timothy Main, who was elected Chairman of the Board of Directors.[12] The appointments were sparked by the retirement of Board Chairman William Morean whose father founded Jabil in 1966.[13]

The company reports on its website that it operates 90 plants in 23 different countries.[3]

Business areas[edit]

Jabil customers span numerous industries, including healthcare, life sciences, clean technology, instrumentation, defense, aerospace, automotive, computing, storage, consumer products, networking and telecommunications.[14] Its services include design engineering, manufacturing and supply chain services for the EMS and consumer industries; and materials technology services (plastics, metals, automation and tooling). Jabil diversifies their business into three areas.[15]

Diversified Manufacturing[edit]

The diversified manufacturing services segment of Jabil manages high complexity global products in regulated industries and offers material and process technologies. These include clean technology, defense and aerospace, emerging growth, healthcare and life sciences, industrial, and instrumentation. Jabil offers material technology services by employing material scientists that deal with everything from types of metals, glass, ceramics and plastics.[15]

Enterprise and Infrastructure[edit]

Jabil engages in complex large-scale system requirement products in regulated industries. Markets include computing and storage, networking, and telecommunications. Jabil has 300 engineers on their design team throughout the United States, China, Taiwan, and Europe who are dedicated to these business areas. Experience includes entry-level servers, clustered storage systems that support over 6 million platform configurations, and embedded storage and networking applications. Their regional computer and storage manufacturing centers are located in Memphis, Tennessee; Tiszaújváros, Hungary; Singapore City, Singapore; and Wuxi, China. Jabil's design centers are located in Colorado Springs, Colorado; Vienna, Austria; and Shanghai, China. Their support locations are in numerous locations throughout the United States, Mexico, Brazil, Eastern and Western Europe, Malaysia, and China.[16]

Jabil has a networking and telecommunications team that works solely on turnkey electronic design and manufacturing services. These products are designed and manufactured for telecommunications and networking equipment companies. These products include wireless infrastructure, microwave backhaul, and wireless broadband access. The company also manufactures, supplies, and repairs user equipment such as modems, enterprise LANS and switches, routers, and cellar infrastructure. Jabil has networking and telecommunication locations in San Jose, California; Guadalajara, Mexico; Wuxi, China; Ho Chi Minh City, Vietnam; Pune, India; and Tisza.[17]

High Velocity[edit]

Jabil engages in lower mix products for customers in the automotive, digital home, mobility, point of sale, and printing industries. Jabil's high velocity business focuses on getting business ideas from concept to market in the quickest time possible. The company focuses on faster time to market by providing businesses with product design, materials technology, validation and supply chain management. Jabil's facilities for high velocity systems are located in various locations throughout the United States and the rest of the world. Jabil has performed high velocity system work for many notable companies. In 2010, Jabil began to build all printers for Zebra Technologies[18] and also produces the printed circuit board assemblies for all laser printers sold by HP.[citation needed]

Services[edit]

Jabil is involved in design engineering services. The company has industrial design services that concentrate on designing the look and feel of plastic and metal enclosures that house printed circuit board assemblies and systems. Mechanical design services of Jabil include dimensional design and analysis of electronic and optical assemblies. Computer assisted design from Jabil includes printed circuit board assembly design testing and verification and other consulting services.[15]

Design Engineering[edit]

Jabil has an industry-specific design team for each of the industries that they supply including computer and storage, digital home, healthcare and instrumentation, point of sale, and mobile.[19] The company uses value engineering, electrical engineering, mechanical engineering, and software engineering to design products for their clients.[20] Jabil has assisted many Fortune 500 companies with design and engineering including inventing the Sandy Creek, a dual Intel Xeon E5-2690 (Sandy Bridge Romley-EP) based reference design for use in customer applications.[21] Jabil also assisted Cisco with value engineering by placing RFID in circuit boards to store data about the host board.[22]

Supply Chain and Logistics[edit]

Jabil provides supply chain and logistic services. These services include electronic sourcing, virtual / vertical mechanics, logistics, supply chain management, advanced planning, quality, standardized global systems, and supply chain solutions and business analytics. Examples of the company's supply chain and logistics management were seen during the 2011 Tōhoku earthquake and tsunami in Japan.[23] When supply chain disruption occurred, Jabil re-routed supply from alternative sources, allocated limited production to key customers and distributors, specify and quality alternative parts, and called on existing suppliers to help reduce the impact of the disruptions.[24][25] Jabil was able to do the same during the 2010 and 2011 Thailand floods.[26]

Fulfillment and Distribution[edit]

Jabil supplies fulfillment and distribution services for companies. They provide build-to-order and configure-to-order services that improve launch time with lower learning curves, increased flexibility, optimal shop floor routing, transparent customer visibility, and trade compliance management inclusive of denied party screening.[27] The company's fulfillment and distribution services include supply chain management network optimization, visibility and flexibility, trade compliance, and logistics management.[28][29]

Company culture[edit]

Over the years, Jabil has received awards for its community engagement and business practices. Jabil’s organizational culture supports numerous social and environmental responsibility initiatives and embraces lean thinking throughout the organization. The company also has its own university that it uses to promote employees from within the company. The university has programs for Operator To Supervisor, Blue Collar to White Collar, and White Collar to Future Manager.[30]

Jabil's company culture uses the concept of lean manufacturing which is the process of driving improvement and innovation by reducing waste and increasing process speed. In September 2011, Jabil hosted 14,000 Kaizen Blitz events. Kaizen is a Japanese term for improvement and Kaizen events are focused projects that aim to improve processes. Many of Jabil's senior leaders are currently undergoing or have already achieved Six Sigma Black Belt Certification (a Jack Welch principle).[31]

Jabil also holds an annual improvement competition known as "Deliver Best Practices." This is a company-wide (and worldwide) competition to recognize, support, and promote process advancements within the company. Employee teams enter innovative and cost-saving projects into the Deliver Best Practices competition. After several rounds, the top twenty four projects from the global teams win a trip to Jabil's corporate offices and present their projects to company executives in person. One project in four different categories is chosen and the team receives a $10,000 prize.[32]

Social and environmental responsibility[edit]

Jabil is involved in both social and environmental responsibility.[33] Jabil employs a Director of Social and Environmental Responsibility as part of their company who also serves on the Board of Directors for the Electronic Industry Citizenship Coalition. Jabil is also certified by the EICC.[34]

In 2010, Jabil Tempe donated to and sponsored 44 children of the Christmas Angels Program at the Child Crisis Center of Tempe, Arizona.[35] In March 2012, the Juvenile Diabetes Research Foundation (JDRF) held a 5K walk at Ft. DeSoto in St. Petersburg. There was a $5 parking fee that was not anticipated for the event and Jabil stepped in to pay the $5 parking fee for the 1,500 people who turned out for the event.[36][37] Employees from Jabil volunteered in 2012 to clean up the Crisis Center of Tampa Bay. The project involved landscaping, stocking and organizing the food pantry, cleaning the floors and re-arranging the children's play room.[38][39] For the 2012 American baseball season, Jabil partnered with the Tampa Bay Rays and agreed to donate $500 to the Rays Baseball Foundation for the Rays' first base hit of every regular season game. The proceeds to be used for the Hits For Kids program which is part of the Rays' South St. Petersburg Impact Initiative.[40] Jabil also partnered with the American Heart Association in 2012 to raise funds for the organization.[41]

Jabil is also involved with charity and non-profit organizations outside of the Tampa / St. Petersburg area as well. They are a donor for the Guadalajara Los Pinos Boys Shelter in Los Pinos, Mexico.[42] In Japan, Jabil Gotemba employees harvest and sell fruits to Jabil employees and use the proceeds to purchase and donate wheelchairs to the Gotemba community.[43] Jabil employee Rick Smiley climbed Mt. Kilimanjaro in 2011 to raise money for charity. The funds that he raised went to an orphanage in Kenya called "New Hope."[44]

As part of the company's global initiative, more than 7,000 Jabil employees donates money to help the victim's of the 2011 earthquake and tsunami in Japan. The total amount raised was $65,391 USD and was raised in a total of five days.[45] Additional global philanthropy efforts include Jabil donating coats to improvised children in China during the winter months,[46] donating backpacks to needy children,[47] and donating much needed funds to public schools in China.[48]

Jabil Green Point Wuxi and Wuxi Konggang Industrial Park teamed up to build the Shuofang Agricultural Sanatorium for the Disabled and the Health and Happiness Garden on site. The facility opened on May 15, 2012. In addition to helping construct the facility, Jabil Green Point Wuxi and Wuxi Konggang Industrial Park also provided full basic pension, living allowances and medical insurance for disabled students.[49] Other Jabil Wuxi efforts include multiple donations to the Red Cross[50] and donating money to help schools in the Wuxi area[51] (including the Xu China Bridge Primary School for Migrant Students).[52] The Jabil Wuxi manager Liu Junyan has also donated bursaries for college students in need.[53]

Awards and recognition[edit]

Jabil has been the recipient of many awards and recognition. It was the first ever recipient of the Mexican government's National Quality Award which was given to it in 2006. This award is given to organizations recognized for their total quality management practices.[54]

The company was awarded with the Excellence in Best Practices Award from Frost & Sullivan in 2009. This award is presented each year to companies who are identified as encouraging significant growth, identified emerging trends, and created advanced technologies for their industries.[55] Jabil also received the 2009 Market Leadership of the Year Award from Frost & Sullivan.[56] The company also received an HR award in Poland[57] and a NEC Solution America's Favored Supplier Award.[58] Jabil was given three additional awards in 2009 which consisted of the National Quality Award given to Jabil Tiszaújváros as well as the Silver Award in Workplace Safety and Health Performance and the Secure Trade Partnership Plus Certification from Singapore Customs awarded to their Singapore subsidiary.[59]

Jabil was awarded with the 2010 Save Energy Now Award by the United States Department of Energy. This award is presented to companies who are assessed by the US DOE as having significant energy reduction activities.[60] In 2011, Jabil was also the presenter of an award when they presented U.S. Representative for Florida's 10th District C.W. Bill Young with the National Association of Manufacturers Award for Manufacturing Legislative Excellence. The award was presented to Young after addressed 350 Jabil employees telling them about the important work that they do and how it keeps the soldiers of the United States Military safer.[61]

Jabil made the list of Newsweek S&P 500 Green Companies in 2011. It was the 3rd consecutive year for Jabil to be on the list, improving each year from number 200 to number 127 in 2011.[62] They were also given the 2010-2011 Annual Enterprise of Harmonious Labor Relation of Guangzhou City award.[63]

In 2012, Jabil was recognized by Fortune Magazine as one of the Fortune 500 Most Admired Companies.[64] They are ranked at number 157 on the list of Fortune 500 companies[65] and #1,231 on the Forbes Global 2000.[6] Jabil was also awarded with the 2012 Kaizen Award in China by 1MFG and Masaaki lmai’s Kaizen Institute Consulting Group (KICG).[66] In 2012, Tim Main, former CEO and current Chairman of the Board, and Bill Morean, former Chairman of the Board of Directors, won Entrepreneur of the Year Awards from Ernst & Young, LLC for the Florida region.[67] In 2012, the Chiefist ranked Jabil Chairman of the Board Tim Main (CEO at the time) as one of the Best Mid-Cap CEO's,[68] a ranking that establishes the top 10 best CEO's based on company share price and total return to shareholders.[69]

Jabil Circuit Shanghai received the Institute of Engineers Lean Best Practice Award in 2014, an award given in recognition of innovation and Lean Six Sigma capabilities.[70]

Acquisitions and expansion[edit]

Jabil has acquired numerous companies and arms of companies. Their acquisitions have helped them expand their presence in countries such as China, Mexico, India, the Netherlands and Russia to name a few.[2][71] In 2011, Jabil opened a Photovoltaic Certification and Testing Laboratory in St. Petersburg, FL.[72] In February of 2013, Jabil announced it would be purchasing Nypro for $665 Million in cash.[73] The purchase was completed in July 2013.[74]

Year Company Acquisition Details
2013 Nypro Purchased Nypro, a private company that manufactures plastic products for the healthcare industry.[74]
2011 Telmar Network Technology, Inc. Purchased Telmar, a global provider of complex reverse logistics, repair services, technical support, and spare parts management solutions for communication network service providers.
2006 Taiwan Green Point Enterprises Acquired Green Point who specialized in plastic parts for cell phones and other portable electronic products. It is now referred to as Jabil's material technology services.
2005 Varian, Inc. Purchased the contract manufacturing division of the company for approximately $195 Million.
2002 Lucent Technologies of Shanghai $75 million purchase of most of their assets which included a deal to supply Lucent with optical switching and other communication components for three years.
2002 Philips Contract Manufacturing Services Purchased the division from Philips for approximately $210 Million and also signed a 4 year supply agreement worth approximately €4 billion.
2001 Intel Corporation Entered into agreement with Intel to acquire an Intel plant in Malaysia. Acquisition included an agreement to supply Intel with parts for 3 years.
1999 GET Manufacturing Acquired electronics manufacturer. Acquisition allowed Jabil to expand into China.

References[edit]

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External links[edit]