D&L Industries Inc. remains optimistic about business prospects amid changing global trade landscape and potential new tariffs, a top executive said Thursday.
The company said while there may be some short-term volatility, its businesses are equipped to handle these shifts.
“In 2019, the trade war and the generally cautious sentiment globally had an impact on our exports, down 25 percent year-on-year that year,” said D&L president and chief executive Alvin Lao Thursday in a statement.
“Since then, many companies globally have begun restructuring their supply chains to navigate around possible future tariffs. With these adjustments, we anticipate a lesser impact on our export business this time around compared to 2019,” he said.
D&L said its pricing structure would protect it from sudden changes in foreign exchange and commodity prices. It also plans to continue adjusting selling prices as needed, thanks to its research and development capabilities.
Meanwhile, Lao also sees opportunities in the trade tensions between the US and China.
“The apparent trade tensions between the US and China present opportunities for companies like us to supply to companies who cannot source from either the US or China. Our new plant in Batangas gives us the capacity and capability to cater to bigger export customers. This puts us in a prime position to capture opportunities arising from the evolving international trade environment,” he said.
D&L’s exports, which account for 31 percent of total sales, focus on products with a competitive edge. These include highly-customized items with significant R&D input and coconut-based products. The company also has a strong supply chain to support these products.
“The products that we export are generally distinguished by their unique functional and technical properties, making D&L a go-to supplier for many global customers. With an aggressive export strategy and enhanced production capabilities, we maintain our guidance of reaching 50% export sales contribution to total sales over the medium term,” Lao said.
