Q&A with Rand Technology

1. What new market trend are you seeing so far in 2025? 

Unpredictability across a range of considerations is impacting the demand outlook, resulting in some companies expediting supply and/or delaying capital investments. This will exacerbate what was already going to be a wave of supply driven shortages due to under-forecasting by customers, movement of production to new locations with questionable labor availability, slower cycle times, and lower quality/yield. It will also lead to some component manufacturers using it to try to raise pricing. The unpredictability contributes to asymmetrical supply and demand, which creates opportunities for our business. These include parts shortages, surplus and excess stock and rising total costs. Customers that work closely with us can mitigate some of these risks, minimize the impact and respond to ongoing changes more quickly and efficiently.

2. How are geopolitical events, the rising costs of business and the labor shortage impacting your organization?

These cuts are causing a supply shortage. CFOs are struggling to allocate funds, resulting in a lack of forecasts and additional cuts at the manufacturing level. This cycle of uncertainty leads to further unknowns and exacerbates the supply shortages.

3. What new ESG (environmental, social, and governance) initiatives or plans have you put in place?

Nothing too new. We continue to work towards being a green company and being aware of our carbon footprint and taking steps towards sustainability.

4. What other challenges are you working through and how are you overcoming them? 

The unknowns of the tariffs. Imagine ordering parts today but something changes overnight when they arrive, and you owe more!

5. Where do the opportunities lie right now and how is your company leveraging them?

There is a high level of uncertainty and risk for all businesses that will hinder decision making and investments. Trade wars, actual wars, recessions, AI development impacts on workforces, etc. There is a crisis of confidence already happening in business (especially in manufacturing) that seems likely to continue for some time. But seeing the networking and communications build-out phase of the AI datacenter build out, and geographic expansion of datacenter investments in Europe and Asia (after North America last year), the opportunities lie in helping our customers by buying up the product that is the right geographical region to avoid tariffs and help them down the line.

6. What specific challenges are you facing due to the new tariffs? 

Supply shortages. There will be a lack of product which will lead to inventory disappearing fast and cause prices to rise. Demand might stay flat, but supply will be down. Although it is hard to say, everyone is on hold because it changes daily.