New Power 61e855367a6f2


Feb. 15, 2022
Q&A with NewPower

Carleton Dufoe, CEO
1. What is NewPower doing to differentiate itself in 2022?

As global supply chain issues persist, NewPower is investing heavily in technology and infrastructure to ensure we continue to provide the most efficient services to our customers. Our proprietary sourcing software, Empower™, is designed to speed up processes without compromising quality so that we can act quickly and efficiently 24x7 globally. We continue to face the volatility of the market head-on, offering alternative strategies to resolve the latest supply chain issues and providing financial guarantees that allow our customers to plan and forecast years into the future. Our $200M committed credit facility provides the financial flexibility to deliver turn-key supply chain solutions customized to our clients' needs.

Jeffrey Hong
2. What is the most significant business opportunity for NewPower in 2022?

The market is changing, and businesses are in dire need of innovative supply chain alternatives from their distribution partners. With an exponential increase in online communication and collaboration, demands for semiconductors that enable connectivity and cloud usage have soared and will continue to do so in 2022 and beyond. As new variances of COVID-19 are uncovered, the market will continue to see new supply chain issues, and therefore we can expect continued reliance on semiconductors, online collaboration, and artificial intelligence well into the future. Banks, retailers, and healthcare providers who haven’t yet migrated to online operations will need to do so quickly. As businesses continue to look for ways to improve business operations, new tools and technology will need to be developed and improved. NewPower expects to remain an active participant in this space well into 2022 and in the years that follow.

Trang Nguyen
3. How bullish/bearish are you for NewPower's business in 2022, and why?

As 2021 delivered yet another record-breaking year for NewPower (marking our seventh consecutive year of double-digit growth), our business outlook remains highly bullish for 2022. Despite the increasingly difficult challenges and uncertainties caused by COVID-19, NewPower is continuing to grow in value to our customers because they have come to trust and rely on NewPower’s ability to offer innovative solutions to supply chain and inventory issues. Through the combination of our financial security and proprietary technology, Empower™, we have positioned ourselves to help businesses be more proactive in times of crisis. We have the financial flexibility to create longer-term solutions such as creating buffer stock, offering alternative components, and delivering customized customer-specific programs to help with shortages that might otherwise keep them from moving forward. Our ability to provide cost-effective solutions to supply chain disruptions in the near-term and long-term positions us well for continued growth for 2022 and beyond.

Matt Fonstein
4. What market segment was most impacted by COVID-19 in 2021?

While automakers certainly dominated world news in 2021 as the market segment most impacted by COVID-19 this year, they are not alone. Industrial equipment manufacturers and data centers are also dealing with severe supply constraints and heavy premiums. Other segments negatively impacted, including Power Automation, Telecommunications, and Networking industries, have been quietly battling the same supply constraints and competing for the same allocations. In fact, in many ways, they have arguably been more significantly impacted by slowdowns, as they generally have fewer resources and more limited budgets.

Aaron Dufoe
5. Is NewPower considering retaining any business practices that were implemented during the COVID-19 pandemic?

The COVID-19 pandemic has demanded that organizations be more efficient as physical access to everything, and everyone remains constrained. NewPower's early-stage investments in technology – specifically our proprietary sourcing platform, Empower™ – have enabled our team to deliver results with unprecedented speed and efficiency. We deliberately invested heavily in technology early on so we could find parts with ease and act fast, even in a remote world. We'll continue to do so to ensure our systems have the flexibility to operate in real-time, 24/7/365 on a global scale. As businesses are relying more heavily on technology to present information to people, this will continue to be a key part of our business moving forward.

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