Reported 3 months ago
Adlink Technology, a manufacturer of industrial computers, is speeding up its expansion with the expectation of increased investment as former President Donald Trump is predicted to push for policies such as 'increased defense budget,' 'Made in America,' and 'America First' if re-elected in 2024. The company's North America-Mexico factory is currently undergoing accelerated expansion, aiming to be completed ahead of schedule by the end of this year, while also evaluating a potential third production base in preparation for operations in 2025. Adlink Technology's products, spanning various fields like industrial computers, aerospace, defense, telecommunications, and healthcare, are being boosted by the ripple effects of the 'Made in America' policy, driving the need for increased production capacity and facilities. Anticipating a surge in demand, especially if Trump is re-elected and continues to implement related policies, the company is moving quickly to complete the expansion by year-end to support burgeoning requirements at its Los Angeles plant. While facing slight declines in June revenue due to testing issues with products for key clients in the gaming and defense sectors, the company is optimistic about the second half of the year, expecting a stronger performance compared to the first half, reporting growth in annual revenue. Adlink Technology plans to incur one-time costs in the second quarter due to group business adjustments and capacity building needs, potentially affecting profit performance for the quarter, but foresees profitability stabilizing and improving from the third quarter onward with increased operational scale, optimized product mix, and reduced production costs, driving a return to growth trajectory. The overall assessment reflects a trend in the US where policy outlook under President Joe Biden and mounting investments in infrastructure, AI, military spending, and reshoring to the US will continue and expand, underscoring a direction that will be crucial for the new administration. Accordingly, Adlink Technology is gearing up to complete the new production capacity by year-end in readiness for the anticipated business boom in 2025.
Source: YAHOO