Richard Phillips
CEO / Kimball Electronics
Richard Phillips, the CEO of Kimball Electronics, truly embodies the company’s motto of “Lasting Relationships, Global Success.” In an exclusive interview with CEO North America Magazine, Phillips explains that the company’s success is rooted in solid, people-focused ethics and he believes that Kimball Electronics is well-positioned for further achievement in 2025.
Kimball Electronics, established in 1961, has over 63 years of experience producing electronics for the automotive, industrial, and medical markets. Today, Kimball is a global leader in delivering durable electronics and offering contract manufacturing services for various industries. The company’s operations are supported by a robust Customer Relationship Management (CRM) model, providing customers with end-to-end manufacturing solutions and convenient access to services throughout the entire product life cycle.
Impressive Company Culture
Before joining Kimball, Ric Phillips had a clear idea of the type of company he was looking for, “I had previously worked in management consulting and, during that time, I saw lots of companies and cultures and knew how important that was to me.”
From the beginning, he was impressed by Kimball’s culture and people, having had the opportunity to spend significant time with the board members and senior management team. He explains, “What I saw at Kimball was probably the best I’ve seen in terms of a company that sets out guiding principles and lives by them and supports each other as a collaborative; focused on the customer, focused on long-term success and doing things the right way.”
“We’re going to take a long-term perspective; we’re going to be flexible and we’re going to really value those relationships and how we can support you.”
One Team, Worldwide
In 2024, Kimball was named the 18th largest EMS provider worldwide. The company is well-positioned for the global market, with nine facilities in significant manufacturing regions, including three locations in the United States, Thailand, China, Poland, Mexico, Romania. “We talk about ‘the factory of the future,’” Phillips says. “If you were to look at our manufacturing facilities, you would describe them as really well-lit, highly automated laboratories. That’s what they feel like, and that’s important to us.”
One of the company’s success strategies is its incentive system, which encourages collaboration. “Collaboration is something that our customers really value”, Phillips explains, “We have a single instance of SAP for all of our facilities around the world”, which is why Kimball can manage large teams and function seamlessly over long distances. Phillips emphasizes – even more critical than the technology itself is the mindset behind using it. “What we pride ourselves on is that teams across the world, as well as the support functions around it, really act like one team.” This worldwide synchronization of technology and teamwork means Kimball offers accessibility that its competitors cannot. Being able to cater to its customers’ unique needs, regardless of location, creates a cost-effective and convenient solution to customer challenges.
“Our success is directly linked to the lasting relationships we’ve cultivated with our customers, treating their businesses like they are our business.”
Strengths and Challenges
Phillips was not only attracted to joining Kimball Electronics’ culture but also believed he could make a meaningful difference. He remembers when he took his position: “Kimball was well positioned in the three market verticals that we operate in, with really strong customer relationships. It just looked to me like an opportunity to create a lot of value for our company, our people, and our shareholders moving forward.”
Since becoming CEO in 2023, Phillips has seen the company experience innovation, growth, and success. In 2024, Kimball has achieved its second-highest company revenue, reaching $1.715 billion. The company also recorded $112 million in inventory reductions and boasted a cash flow of $72 million from operating activities.
However, there have also been challenges. Despite the 2024 fiscal year being a record-breaking success, in Q4, there was a decline in revenue in all three of the company’s market verticals. In response to these results, Phillips told shareholders, “Q4 was another quarter focused on ‘controlling what we can control.’ In the market verticals we serve, the pullback has been more significant than originally anticipated, and we continue to adjust our cost structure to maintain competitiveness with stable operating margins, improve working capital management with lower inventory levels, and generate positive cash flow.”
“We collaborate really well across our sites around the world, which I think is due both to technology and to our culture.”
Phillips tells us these challenges are not unique to Kimball; “Right now, the entire industry that we’re operating in has been challenged. Between the macroeconomic conditions and excess inventory, it’s been a challenging time for all of our peers in the industry.” Despite the challenges, Phillips remains focused. “As we again continue to look long-term, I feel we’re very well positioned.” He emphasizes that the company’s end-game strategy is the implementation of aggressive, continuous improvement targets set three years in advance and the commitment to meet customers’ expectations.
Watch This Space
Phillips says, “We don’t chase business that’s not a fit for Kimball. We’re pretty selective about where we play and are proud of that.” The CEO says that in each of its market verticals, the company has raised its level of strategic thinking and planning to affect technologies that fit them, “Because of that, I think it positions us really well to grow long-term.”
In 2024, Kimball generated 25% of its revenue from the Medical sector, amounting to $426 million. The company plans for future growth by targeting the increasing demand for innovative drug-device combinations. Phillips explains that Kimball is better positioned than its competitors because “We have a capability that not all of our competitors have in that we can handle drugs.” Kimball’s strengths in cold chain capabilities and the ability to provide a “full assembly” of their product offer an additional service that is highly desirable to their customers. This advantage is paving the way for expansion opportunities. Phillips noted, “We see good opportunities there, and we’re in lots of discussions. We’ve had some wins.”
In 2024, Kimball’s Automotive sector emerged as its most profitable market vertical, generating $826 million in revenue. This division primarily caters to electronic power steering, body controls, automated driver assist systems, and electronic braking systems. Phillips highlights the most promising growth opportunity in high-tech, next-generation electronic braking and steering systems. “We’re well-positioned there with really strong relationships,” he asserts.
“One of the things that is a big part of our culture is a continuous improvement mindset.”
The company’s third market vertical is Industrial, which is notably diverse. “We try to focus on those things that will scale. Many of the things that we do in industrial are what we call ‘green and clean’. So, environmentally friendly, whether it’s an HVAC or other areas,” Phillips explains. He also notes the potential for growth in the off-highway equipment sector, stating,
“We see off-highway equipment as an area for us that we’re investigating and having some interesting conversations in.” In 2024, Kimball’s Industrial market, which encompasses climate controls, automation controls, optical inspection, and public safety, recorded revenue of $462 million.
“Recent new program wins, which will start to impact fiscal 2026, make us excited for the future.”
Winning Together
When asked what makes Kimball unique, their CEO says, “The culture and how we live our guiding principles really finds its way into everything that we do.” He adds, “I think the customer relationships we have are truly distinctive. “According to Phillips, along with operations and quality performance, another must-have is constant customer feedback.
One of the company’s main assets today is customer loyalty. “75% of our customers have been with us for a decade or longer, and I think that really speaks to our long-term thinking, level of service and quality, operations performance and flexibility.” He notes that Kimball’s mission is to think long-term and think about partnerships. “We respond very quickly to new opportunities, whether existing customers or new customers and because of that, I think we’ve built really strong customer relationships.”
