What are the critical demand drivers you see creating continuing opportunities for growth in your business in 2019?
NewPower Worldwide (“NewPower”) has grown from zero revenue in 2014 to over 250M USD in 2018. This is impressive growth for any company, but particularly strong when compared to peers in the electronics distribution industry. We have a diverse list of strategic customers that have taken the time to audit and validate our internal processes and procedures. Coupled with an industry leading team of employees, NewPower is well positioned to continue its growth in the upcoming years.
What will drive demand into 2019 and beyond? The biggest by far will be global deployment of 5G followed by WLAN, IoT, and Artificial Intelligence (AI). The Automotive, Cloud & Data Centers, Networking and IoT sectors will continue to grow. Worldwide deployment of 5G technology will be a strong source of demand in itself, and will also be the catalyst for the creation of even more technologies and devices. Manufacturers have been making investments in new capacity, but supply constraints will continue in the meantime. 5G will generate exciting new opportunities and increase interest in current market drivers. This combination will keep NewPower’s services in strong demand for years to come.
- What steps are you taking to respond to the growing volatility in the global trade environment? How much and what kind of impact do you think tariffs and new trade treaties will have on distribution?
NewPower is constantly adapting to market conditions. As a young company we are adept at identifying and responding to our customers’ needs. By collaborating with customers and suppliers, NewPower maintains a shared knowledge base which generates value for ourselves and our partners. NewPower has multiple warehouses across the globe enabling us to respond rapidly to changes in the market (including tariffs and trade agreements). Volatility is relative, and while it produces challenges it also produces opportunities.
- What are you doing to attract, retain and motivate your employees in a highly competitive market for workers of all types?
NewPower believes our employees are our greatest asset. We achieved revenues over 250M USD in 2018 with fewer than 55 employees worldwide, and have industry-leading revenue per employee metrics. This speaks volumes to the talent we have inside the company, and our team’s dedication to serving our customer base. We maintain an energetic and transparent trading environment. This is supported by training, strategy, and development across all departments and regions. We are a growing company with paths for advancement at all levels and excellent educational/learning opportunities for team members. The bottom line is NewPower knows our employees are our IP.
- How have your operations benefitted from the adoption of new IoT and cloud technologies? Where are you at in creating a “Smart” distribution operation and what are your plans for the future?
NewPower seeks innovation in all aspects of our business. All of our critical data, information, and communications are cloud-based, from our proprietary trading platform, Scout, to industry standard productivity and collaboration tools. We review feedback from our employees, customers and suppliers in all planning and decision-making. Our customers design, manufacture, and distribute products 24/7/365 and NewPower is there supporting their needs every step of the way. Our job is knowing where the product is before our customers need it and being ready to get that product from point A to point B in the fastest, most economical, and efficient manner possible. Using cloud-based platforms allows our global locations to communicate internally and externally in real-time. Remotely monitoring our facilities’ security, as well as environmental conditions in our warehouse and quality lab assures our customers that NewPower provides safe and reliable management of their product and confidential information.
- What developments are you seeing in the growth of non-traditional customers and markets? Are they having a meaningful impact on your business?
At NewPower our management team has over 200 years of industry experience. We use our knowledge to maintain a diversified, strategic customer base across different industry segments. We are constantly looking to penetrate new segments within Automotive, IoT, Medical, Automation, Computing, Networking, Embedded, and Cloud. Our growth, market knowledge, direct manufacturer relationships, and unwavering commitment to quality have seen the Defense and Aerospace industry engage NewPower directly. NewPower is a new breed of independent distributor and has been changing the status quo since day one. We want to work with customers who share the same core values, and maintain the same commitment to high standards, transparency, and open communication. We welcome all existing and future customers to come and audit us, and see exactly how NewPower can support them.
- How important are your partners in supporting your customers and delivering differentiated value? What do you do to cultivate successful partnerships?
This question speaks to the core of NewPower and how we have quickly differentiated ourselves from others in the industry. We treasure the relationships we have built within our customer and supplier bases, and work diligently to maintain them. Partnerships and relationships are the keys to success. And whether the shortage environment of the past two years persists or becomes a cost savings-driven market, NewPower has the relationships and partnerships it needs to adapt. NewPower has dedicated sales and purchasing teams across the globe who keep their finger on the pulse of the market, constantly synched through our proprietary trading platform, Scout. We have product managers who are focused on their specific market segments. In these ways, NewPower is “Empowering Supply Chain”.