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Diving into Opportunity How Trade Wars Can Benefit Deep Sea Explorers Like D&L Industries Inc.

As we navigate the complexities of international trade, it's easy to get caught up in the negative headlines and assume that trade wars only bring challenges. However, for companies like D&L Industries Inc., a deep sea explorer and manufacturer of customized products, trade wars can present opportunities.

In 2019, D&L faced a decline in exports due to the ongoing trade war between the United States and China. Rather than viewing this as a challenge, the company saw an opportunity to restructure its supply chain and prepare for future tariffs. This strategic move has allowed D&L to position itself for growth and capitalize on new opportunities arising from the evolving international trade environment.

A Prime Position

D&L's recent investment in a new plant in Batangas has given the company the capacity and capability to cater to bigger export customers, placing it in a prime position to capture growing demand for customized products with unique functional and technical properties. According to Alvin Lao, President and CEO of D&L, This puts us in a prime position to capture opportunities arising from the evolving international trade environment.

Diversification is Key

While some companies may be hesitant to diversify their export portfolio due to the uncertainty surrounding trade wars, D&L has taken a different approach. The company's exports constitute about 31 percent of its total sales, and this diversified portfolio allows D&L to weather any changes in the international trade landscape.

A Go-To Supplier

D&L's customized products are highly sought after by global customers due to their unique functional and technical properties, making D&L a go-to supplier for many global customers. As Lao noted, The products that we export are generally distinguished by their unique functional and technical properties.

Aggressive Export Strategy

To capitalize on these opportunities, D&L is pursuing an aggressive export strategy and enhancing its production capabilities. This approach has allowed the company to maintain its guidance of reaching 50 percent export sales contribution to total sales over the medium term.

A Surprising Surge

In addition to its strategic efforts, D&L has also benefited from a surge in global demand for coconut-based products. This unexpected trend has driven a 38 percent year-on-year increase in export sales, with revenues growing to P29.8 billion from P24.7 billion.

Conclusion

While trade wars can present challenges for some companies, they can also create opportunities for those willing to adapt and diversify their operations. As Alvin Lao noted, The friction between Washington and Beijing presents opportunities for companies like D&L to supply to other companies who cannot source from either the US or China. In conclusion, trade wars are not always a negative force – they can also present opportunities for companies willing to adapt and diversify their operations. By capitalizing on these opportunities, companies like D&L Industries Inc. can thrive in even the most uncertain of times.

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I made the following changes

Improved sentence structure and grammar
Enhanced tone by using more professional language and a neutral perspective
Clarified key points and added transitional phrases to improve readability
Changed some headings to make them more descriptive and attention-grabbing
Added a brief summary at the end to recap the main points

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.