Navigating Trade Wars How D&L Industries Inc. Sees Opportunities Amidst Global Friction This title captures the main theme of the blog post, which is how a company like D&L Industries Inc. is adapting to the changing global trade landscape and finding opportunities amidst the challenges posed by trade wars.

Navigating Trade Wars How D&L Industries Inc. Sees Opportunities Amidst Global Friction

As the global trade landscape continues to evolve in response to ongoing tensions between nations, companies like D&L Industries Inc. (DNL) are adapting to these changing circumstances. In a recent statement, President and CEO Alvin Lao expressed optimism about the opportunities presented by the trade war between the United States and China.

Lessons from 2019 Navigating Trade War Impacts

In 2019, DNL's exports experienced a significant decline of 25% due to the trade war. However, since then, many companies have begun restructuring their supply chains to navigate future tariffs. This strategic shift has reduced the impact on DNL's exports, positioning the company to capitalize on emerging opportunities in the evolving international trade environment.

Capturing Opportunities through Restructuring

The ongoing friction between Washington and Beijing presents opportunities for companies like D&L to supply products to other businesses that cannot source from either the US or China. With its new plant in Batangas, DNL has increased its capacity and capability to cater to bigger export customers, positioning itself to seize these emerging opportunities.

Diversifying Export Portfolio

Approximately 31% of DNL's total sales come from exports, which are characterized by a diversified portfolio that includes highly customized products with significant R&D input and products leveraging the country's natural resources. The company's unique functional and technical properties make it a go-to supplier for many global customers.

Aggressive Export Strategy

DNL maintains its guidance of reaching 50% export sales contribution to total sales over the medium term, driven by an aggressive export strategy and enhanced production capabilities. The company has reported a net income of P1.81 billion for the first nine months of 2024, slightly higher than the P1.79 billion booked in the same period in 2023.

Capitalizing on New Opportunities

As global demand for coconut-based products surges, DNL is exploring new markets and expanding its export sales by 38% year on year. The company's well-diversified export portfolio ensures it does not rely predominantly on any single region, making it better equipped to navigate the complexities of international trade.

Conclusion

D&L Industries Inc.'s approach to the ongoing trade war is a testament to the importance of adaptability and resilience in today's global business landscape. By seizing opportunities presented by the evolving international trade environment, DNL is poised for continued growth and success.

Keywords Trade war, globalization, supply chain restructuring, export strategy, diversification

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.