Where are U.S. tariffs on China sending manufacturing?

2019-09-04

We have written a series of articles recently related to the increase in supplier migration out of China as a result of the U.S. tariff situation. Pro QC is currently assisting clients to identify new markets and diversity their supply base away from China. The answer to where to go largely depends on the items being produced. In general, we're seeing a move from China to Vietnam and other SE Asian countries. Due to the increase in movement in Vietnam, there are unique challenges with labor and capacity. We've also discussed Mexico as a U.S. solution, citing the following reasons: * Mexico follows similar Intellectual Protection laws as the U.S. and Canada * Logistics advantages * More compatible time zones for U.S. and Canada * Lower travel costs * Skilled workforce * Reasonable labor costs * Mexico's exports on average contain about 35% or more U.S. parts, whereas Chinese exports contain far less, at about 4%. (WSJ 6/2/19) Considerations for Manufacturing in Mexico https://proqc.com/blog/considerations-for-manufacturing-in-mexico/ We're even seeing clients evaluating the Caribbean as an effort to ensure all options in today's global marketplace are considered. Learn more about how tariffs are affecting supply chains: https://proqc.com/blog/what-does-the-current-us-china-trade-war-standoff-actually-mean-for-your-supply-chain-solutions/ If you're looking to identify new suppliers, contact us.

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