After laying off dozens of workers from its Ottawa operations last year, design services firm Syntronic says it’s back in growth mode. Taimoor Nawab, the Kanata-based head of Syntronic Canada’s R&D division, said the company plans to hire more than 60 software developers this year, with 95 per cent of the new jobs expected to […]
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After laying off dozens of workers from its Ottawa operations last year, design services firm Syntronic says it’s back in growth mode.
Taimoor Nawab, the Kanata-based head of Syntronic Canada’s R&D division, said the company plans to hire more than 60 software developers this year, with 95 per cent of the new jobs expected to be in the National Capital Region.
Nawab said about 80 per cent of the new hires will focus on designing software and other products such as cutting-edge sensors for original equipment manufacturers that cater to the automotive industry.
As next-generation technology aimed at assisting drivers with parking and other tasks gets more sophisticated, OEMs require more outside expertise, Nawab explained.
That’s where Syntronic comes in. Headquartered in Sweden, the firm designs and manufactures software and other technology for customers in the automotive, telecommunications, medical technology, industrial and robotics sectors.
While telecom customers still generate more than half of the company’s revenue, Syntronic’s sales to clients in the auto industry are accelerating.
Automotive OEMs currently account for about 20 per cent of the firm’s overall revenues, and Nawab expects car-related software to make up an even bigger part of its income in the future.
“Some of it is very niche,” he said of the technology that powers driver-assisted parking, lane-departure warnings and other features of modern vehicles.
“It’s not always easy for (equipment manufacturers) to scale up as quickly as they need. They look for partners like us that can bring the expertise today.”
Syntronic established its first Canadian R&D hub in Kanata a decade ago. As cars and other devices have become more connected to the Internet of Things, demand for its services has grown.
The firm now has five offices in the Ottawa area, including three in Kanata and two in Stittsville, where its manufacturing facility is located.
Still, Syntronic has not been immune to the effects of the economic downturn that has led to tens of thousands of layoffs throughout the tech industry in the past couple of years.
Local headcount falls to 470
After acquiring three Ottawa-area companies in 2022 and early 2023 to expand its manufacturing capabilities and other services, Syntronic began trimming its local headcount. The company now employs about 470 people in the National Capital Region, down from more than 550 in January 2023.
Nawab said Syntronic decided to downsize in areas that “weren’t typically core” to its business, such as developing apps for smartphones and other mobile devices.
The company’s mobile app development team now has about 20 employees. Meanwhile, the number of engineers and other workers devoted to automotive products stands at about 85 and will continue to grow, Nawab said.
Syntronic Canada is predicting revenues for the fiscal year ending April 30 will be up close to 10 per cent compared with a year ago, roughly in line with the company’s previous projections.
With the Bank of Canada expected to start cutting interest rates later this year, Nawab is hoping Syntronic’s customers will shift into higher gear and drive more revenue growth in 2024.
“I think everyone is optimistic that’s going to happen at some point this year, and we kind of have that same view,” he said.
Nawab said strategic moves such as the 2022 acquisition of Stittsville-based manufacturer Lloyd Douglas Solutions are aimed at transforming Syntronic into a “one-stop shop” for customers looking for everything from new product ideas to prototyping, design and repair services.
Diversifying its offerings has allowed the company to tap into new revenue streams, he explained.
“We’re basically now able to provide product life cycle support from start to finish, which helps us move up that value chain.”
