Worksport Secures Long-Term Supply Agreement and Expects $16M in Annual Sales

Worksport Ltd, a company that manufactures tonneau covers for light truck models, has announced a significant milestone in its business operations. The company has secured a long-term supply agreement with an undisclosed automotive aftermarket reseller in the U.S.

Under this agreement, Worksport is expected to earn an estimated $16 million in annual sales for its advanced hard-folding and soft-folding covers. These specialized covers also come with solar charging capabilities for electric trucks, catering to the growing demand for eco-friendly options in the automotive industry.

It is important to note that the estimate of $16 million in sales is based on the customer’s forecast on an annualized basis. However, this figure does not include the customer’s expectations of year-over-year growth in sales, indicating the potential for even more significant revenue in the future.

This achievement follows Worksport’s recent initiation of manufacturing operations at its facility in Western New York. The company received a substantial order worth $1.6 million for its hard-folding covers and an additional $720,000 order for the soft-folding versions from the same customer, further highlighting the demand for Worksport’s products.

To meet the increased demand in the market, Worksport has outlined its strategic vision for the future. The company intends to incorporate robotics and automation into its operations, expanding its assembly lines from one to four. This expansion will enhance Worksport’s manufacturing capacities and enable it to keep up with the growing market needs efficiently.

With this latest development, Worksport is poised to strengthen its position in the industry and continue delivering innovative and high-quality tonneau covers for light trucks. The commitment to implementing advanced technologies in its manufacturing processes reflects the company’s dedication to staying ahead in a competitive market.

In conclusion, Worksport’s long-term supply agreement and anticipated $16 million in annual sales signify a major breakthrough for the company. By capitalizing on the demand for their specialized covers, Worksport is well-positioned to achieve significant growth and success in the automotive aftermarket industry.

Definitions:
– Tonneau covers: Protective covers for the open cargo bed of a truck.
– Aftermarket: The market for parts, equipment, and accessories for vehicles that are not supplied by the original manufacturer.

Sources:
– Benzinga.com