Siyata Mobile Inc. (NASDAQ: SYTA), a global vendor of Push-to-Talk over Cellular (PTToC) devices and cellular signal booster systems, has announced plans to relocate manufacturing of its SD7 rugged handsets and upcoming 5G handsets to the United States. The company expects to begin U.S. manufacturing operations in the first quarter of 2025, a move that could potentially open up additional sales opportunities, particularly in the U.S. market.
This strategic shift comes at a time when 'Made in America' products are gaining significant traction. Recent White House policies, including the Bipartisan Infrastructure Law and The CHIPS and Science Act, have encouraged domestic manufacturing. These initiatives have reportedly led to nearly $900 billion in private sector commitments to American manufacturing and the creation of about 800,000 manufacturing jobs.
The decision to manufacture in the U.S. could prove particularly beneficial for Siyata, given that government agencies and first responders are among its key customers. CEO Marc Seelenfreund emphasized that users of their devices, especially governmental agencies and first responders, value American-manufactured products. The move is also expected to shorten delivery lead times and improve logistics infrastructure.
Siyata's manufacturing shift coincides with growing market acceptance of its products. The company recently secured a deal with T-Mobile US Inc. to make its SD7 Ultra series 5G mission-critical push-to-talk cellular radio handsets available on T-Mobile's 5G network. Additionally, Siyata received a $2.5 million order for its PTT handsets and Real Time View devices from an international emergency medical services organization.
The company's third-quarter results reflect this positive momentum, with revenue reaching $5.9 million, a 218% increase year-over-year. The U.S. market represented 81% of Siyata's revenue during the quarter, underscoring the potential impact of its move to U.S.-based manufacturing.
As companies increasingly consider reshoring manufacturing operations, Siyata's decision could be indicative of a broader trend in the tech industry. The move may not only appeal to consumers and businesses prioritizing American-made products but could also help mitigate supply chain risks and potential tariff issues associated with overseas manufacturing.
