Daktronics expands factories to meet demand for LED

Daktronics expands factories to meet demand for LED
Daktronics is currently expanding production capabilities in multiple factory locations to support increased demand, including the doubling of Surface Mount Device (SMD) LED product lines.

Daktronics president and CEO Reece Kurtenbach said; “Meeting customer demand is a function of both our internal capabilities in manufacturing and the ability for the global parts supply chain to remain stable. We are taking steps now to address our manufacturing capacity by adding floor space, machines and labor. While the supply chain for display components remains dynamic and volatile, our teams continue to work very hard to collaborate with existing and new vendors to obtain the parts we need to meet customer expectations.”

The company’s current expansion project, which completes this summer, will double Daktronics production capabilities for SMD product lines and create job opportunities across all factory locations. The project will increase production space in the Brookings factory by 90,000 square feet.

“The planned improvements and expansions will cover multiple markets and LED product lines but will also create the need for workers at our factories,” added Kurtenbach. “We’re excited to see the positive impact our business has on both our customers and the communities in which we operate as we move forward.”

In Sioux Falls, South Dakota, and Redwood Falls, Minnesota, Daktronics is creating and bolstering indoor and outdoor SMD product lines to meet the increasing demand for LED products using this technology.

The Brookings factory is expanding its sheet metal processes with the addition of four new machines to laser punch and cut, bend, and laser weld. These improvements double the current display housing output for NPP product lines.

Additionally, Daktronics factories in Ennistymon, Ireland, and Shanghai, China, will expand their production capabilities for SMD LED product lines as the company looks to serve customers in markets around the globe. 

“We’re looking forward to the future of AV systems growing and our continued investment in providing the best possible solutions for our customers,” added Kurtenbach. “As such, we’re expecting our total capital expenditures to be approximately $25 million for fiscal 2022, including the manufacturing expenses for enhanced production and capacity, as well as investments in quality and reliability equipment and continued information infrastructure investments.”