China may be a hub for digital device manufacturing, but that doesn't mean it makes the most sense for all companies. After all, with the potential for tariffs looming, a push among consumers for more "Made In America" products and geopolitical unrest, manufacturing in the U.S. is becoming more appealing to many.
That was the assessment of Siyata Mobile Inc. SYTA, a Vancouver, British Columbia global vendor of PTToC devices and cellular signal booster systems, which just announced it is relocating manufacturing of its existing SD7 rugged handsets and its upcoming 5G handsets to the U.S. SD7 is a rugged handset that enables Push-to-Talk (PTT) conversations over public cellular networks. It operates with a SIM card on public cellular networks, giving users nationwide coverage.
“We began working on a manufacturing relocation plan earlier this year and are proud to announce that we expect to begin manufacturing operations in the U.S. in the first quarter of 2025," said Marc Seelenfreund, CEO of Siyata Mobile. "This is an important strategic move that we believe will open up additional sales opportunities globally, particularly in the U.S., and help us to further scale our business."
Made In America All The Rage
The move on the part of Siyata comes at a time when the White House put several policies on the books encouraging companies to manufacture their products in the U.S. and support "Made in America." Some of that legislation includes the Bipartisan Infrastructure Law, the Build America, Buy America Act and The CHIPS and Science Act. Since the legislation was enacted the White House said the private sector has committed to invest nearly $900 billion in American manufacturing and the nation's power sector. The U.S. has also created close to 800,000 manufacturing jobs.
Meanwhile consumers and businesses in the U.S. are clamoring for products made in America, with one survey showing two-thirds of consumers want to buy products made here. Siyata sees a big opportunity for the company to boost sales by shifting manufacturing to the U.S. After all, Siyata counts government agencies and first responders as customers.
Mr. Seelenfreund stated, "Users of our devices, especially governmental agencies and first responders value American manufactured products, but just as important, this move will enable us to shorten delivery lead times and operate within a stronger logistics infrastructure. We are very excited to be making this move and believe it is an important milestone for Siyata.”
Strong Showing In Q3
The shift in Siyata's manufacturing strategy is happening at the same time the company's products are gaining more acceptance in the marketplace. Take its recent deal with T-Mobile US Inc. TMUS for starters. Next year Siyata’s SD7 Ultra series 5G mission-critical push-to-talk (MCPTT) cellular radio handsets will be available on T-Mobile's 5G network, currently the nation's largest. Siyata’s SD7 devices will be available through T-Mobile's Direct Connect platform. Users will also have access to applications Siyata says are designed to improve response times and ensure that emergency services can effectively address critical situations.
Then there's the $2.5 million order it received for its PTT handsets and Real Time View devices from an existing customer, an international emergency medical services organization. Siyata plans to deliver the order in the first quarter of 2025. Seelenfreund said the expansion of its deal with this first responder organization is a testament to the positive impact its devices are having on customers and the relationships Siyata is cultivating. For the third quarter, Siyata reported revenue of $5.9 million, up over 200% year-over-year and 55% year-to-date as of the end of Q3. Demand was particularly strong in the U.S. market, which represented 81% of revenue during the quarter. “Siyata is in the best position it’s been in since our company’s inception, as our capital expenditures have directly improved all performance metrics, and we look forward to delivering continued successful results," said Seelenfreund.
Featured photo by Luke Michael on Unsplash.
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