Issue link: https://iconnect007.uberflip.com/i/1534385
12 PCB007 MAGAZINE I APRIL 2025 particular is tied to the federal government's purchasing process, which is really challenging today for our global competitiveness. It is some- thing worth addressing. Many of our customers are major prime con- tractors to the defense department, so depend- ing on how hard that drive for efficiency is, these contractors may look differently at the choice of whether to outsource or build within their own captive facilities. To the extent that the pendulum swings toward outsourcing, and given our product capabilities, it could be an opportunity for TTM. at's an area that we're watching closely. Two other potential opportunities for TTM are also worth mentioning. First, the Golden Dome project in the United States, which is planned to focus on missile defense systems, plays right into TTM's strength of radar tech- nology. Second, increased defense spending outside the U.S. will likely have to significantly rely on U.S. prime contractors. You also have tariffs, which is much more of a mitigation effort. During the first Trump administration, we learned not to panic and to prepare for different scenarios. When you look at imports directly into the U.S from China, TTM is down to about $50 million in reve- nue over the past year. Mitigating that $50 mil- lion from our customer's standpoint is rela- tively straightforward: Our customer owns the printed circuit board when they bring it into the United States. That's an important distinction. Exactly. eir ability to move their shipments to a contract manufacturer outside the U.S. depends on the part or the program. We also have a superb manufacturing loca- tion in Toronto, Canada, with about $50 mil- lion of imports directly into the U.S. In this sit- uation, our customers may have fewer options, though we can try to satisfy their needs out of our U.S. locations. e final area of concern is raw materi- als. During the first Trump administration, we shied much of our material supply out of China. Now, on our defense side, we have a lit- tle bit of exposure out of Canada that would be difficult to mitigate. at's a cost that we even- tually would have to incorporate into our mis- sion systems and pass on to our customers. Are your customers working actively with you as partners, meaning that this is not your problem, but everyone's problem? I think that's correct and well said. With our customers, we're addressing it as a mutual challenge that we need to take on, and as I said, they're used to it. For good or bad, in the first administration, we had to run many scenarios, and our customers had to engage in that. We learned together. It's not a daily challenge that we like to see, and it does have a con- straining impact on capital expendi- tures from our customers. But we'll be adaptable, and address the chal- lenge. We've done it before. TTM's footprint is global. We have a signifi- cant U.S. presence, as well as in Can- ada, China, and now Malaysia. So, we already have that supply chain resil- iency strategy addressed. ere really is no other PCB manufacturer in the world that has this combination of