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Outlook and Year in Review – the Future is Dynamic

Outlook and Year in Review – the Future is Dynamic

By John Watt, Financial Director, Dynamic EMS.

 

As we reflect on 2019 and recall the political, economic, social and technology agendas impacting the EMS industry, it’s easy to see the headlines and accept the doom and gloom portrayed in the media. However, despite transitioning around £1.5M of business in the year to a low-cost Tier II supplier in Singapore, the resilience and determination of Dynamic EMS, its people, and indeed the sector itself has resulted in another year of growth for the company. So, whilst the business was challenged to replace this business and grow, the result was a major accolade to Dynamic and the team.

johnAs we all know, Brexit and its ripple effects on the business world continued to dominate the political landscape. It’s inevitable that its ramifications will do the same in 2020, and that’s of course something of which to be mindful.

However, predications and navel-gazing never resulted in positive outcomes for any business, so with this in mind, Dynamic EMS has continued to build its “business eco-system”, attracting new business in high-growth niche marketspaces, IoT, aquaculture, agritech and medical devices.

We continue to work with development opportunities where technologies are disruptive and, in some cases, driven by legislation. In certain instances, we see project design windows lengthening as companies seek some sign of stability in market conditions. Nevertheless, the overarching “hangover” is still uncertainty.

Whilst our organic customers continue to see growth in their end markets – the geography and political landscapes of those end markets is changing. The U.S., China and EU have all been impacted by trade tariffs and their related currency fluctuations, and this has resulted in an inability to accurately forecast requirements.

As Dynamic EMS has a global supply chain, we are quite mindful of this instability – to do anything else would be negligent. With that in mind, we have deployed guardrails and mitigated risks within our supply chain, working closely with our strategic suppliers to address potential issues of supply and logistics.

On the supply side, M&A activity and consolidation continued in 2019 and will remain a factor in 2020. We believe we will also see similar activity in the EMS market.

dynamicIn such a quickly moving market, one of the critical capabilities of an EMS manufacturing partner is not just handling today’s requirements, but being resilient enough to anticipate and meet those of tomorrow.  It’s also vital to keep a watchful eye out for forces adjacent to our market that could impact our products in the future. Our customers know this all too well and rely on Dynamic to ensure their success.

As Dynamic EMS looks forward to 2020, we are continuing with our profitable growth strategy and are predicting structured growth in a way that doesn’t have a negative effect on working capital.

We are excited about the potential of the new business opportunities we have engaged with over the last 24 months, as they continue their journey with us.

We are encouraged by the number of opportunities the market is currently offering and the potential to engage in other geographies. As the world shifts, Dynamic’s proven ability to enable scale, scope and speed are critical to navigating the roadblocks ahead.

 

About Dynamic EMS

At Dynamic EMS, we understand that no two-electronic equipment manufacturing customers are the same.  Their products, their supply chains, and their markets all differ, which is why Dynamic EMS offers tailor-made, customised electronics manufacturing services to customers with complex, highly diversified business.

From design to distribution, we enable our customers to be more competitive by bringing innovative solutions to market faster, with a commitment to quality in everything we do.  Dynamic EMS – Your Product Solutions Architect.

Enabling Market Solutions for all technology companies.

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