Resideo Technologies Inc. (REZI) , the Honeywell International Inc. (HON - Get Report) spin-off that recently began trading on the New York Stock Exchange, has a competitive advantage over its peers that make it well-positioned for growth even amid global trade tensions.
The company's product pipeline focuses on the "connected home," which means various devices can be controlled through the internet. The company currently has about 3,000 products for the home, including leak detection as well as boiler and hot water control units.
Resideo, which consists of Honeywell's Homes product portfolio and ADI global distribution business, has 18 manufacturing locations, mainly in Mexico, the U.S., and Europe, which means the company has facilities "close to where our customers are," said Chief Executive Officer Mike Nefkens.
"We like our footprint, so we think we have a competitive advantage there," Nefkens told TheStreet. "Most of our competitors manufacture in China."
The Trump administration is reportedly preparing additional tariffs against all remaining Chinese imports if trade talks falter between Presidents Donald Trump and Xi Jinping, according to Bloomberg.
"I can't speculate on tariffs," said Nefkens. "What's going to happen is going to happen."