DiscoverIE plans to boost its manufacturing presence in the US as the Surrey-based electronics maker readjusts operations in the wake of Donald Trump’s trade war.
The FTSE 250 firm, which designs and manufactures customised electronic components for industrial applications, told investors on Tuesday it expects to ‘move more production to the US in the coming months’.
After a bond market-driven climbdown last week US President Donald Trump established ‘baseline’ tariffs of 10 per cent on all imports with the exception of those from China, which will face levies of 145 per cent.
Protein powder maker Applied Nutrition is also weighing a boost to US manufacturing, while Gooch & Housego and AIM-listed medical device maker Belluscura have said these are looking for alternative sources for raw materials.
DiscoverIE imports ‘very little’ from China, the group said, and its seven manufacturing sites in the US currently fulfil ‘over half’ of local demand.
The US is a crucial market for the company, providing around a quarter of sales, and DiscoverIE says it has the ‘capacity to manufacture all local product sales’ in the country.
DiscoverIE’s Foss business is a fibre optic products manufacturer, while the larger group makes a wide range of electronic components for use in industry
With 38 manufacturing sites across 20 countries, the group is also looking at ‘capturing new commercial opportunities from tariff affected competitors’.
DiscoverIE added: ‘The group has built an international manufacturing capability over many years that is flexible, resilient, efficient and able to support customers through volatile trading conditions.’
It came as the firm revealed it expects to report underlying earnings for the 12 months to 31 March slightly ahead of expectations, with another year of ‘record’ profitability.
Second half underlying operating margin is expected to be ‘comfortably’ ahead of the first half’s showing of 13.8 per cent, reflecting ‘efficiency improvements and higher quality revenue streams’.
DiscoverIE said: ‘Our products are uniquely engineered, predominately sole sourced, with high added value and are essential for customers’ designs, typically being a small proportion of overall cost.
‘We will pass on incremental costs arising from higher tariffs, whilst doing all we can to mitigate the effects of tariffs by optimising production location.’
DiscoverIE shares were up 1.5 per cent by midmorning, taking 2025 losses to just under 22 per cent.
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