contraction, manufacturing, factories

U.S. Manufacturing Contracts for First Time in 3 Years

The nation’s leading factory index in August contracted for the first time in three years as new orders, production and employment all fell below 50 — the threshold between growth and contraction. The Institute for Supply Management’s PMI dropped to 49.1 percent last month, its lowest reading since 2016. Business confidence has also declined as…

Direct vs. Indirect Supplier Management: A Closer Look

Back in the day, when factories served as the templates for developing business processes, the distinction between direct and indirect procurement spending was pretty straightforward: direct spend was focused on the things that went into your product – raw materials, components, subcontracted manufacturing services, and so on. Indirect spend, which some have leeringly referred to…

High Tech Weighs Risks & Rewards of Moving Beyond China

Country-of-origin adjustments can help U.S. high-tech companies minimize geographical risks and mitigate the impact of tariffs. But the strategy can be costly, complicated and risky; and a decision that’s not easily undone. Tariffs are not going to just disappear, market experts say. Even with a delay on certain Chinese-import tariffs, the likelihood of a cease…

trade, tariff, mitigation, strategies

7 Strategies for Mitigating the Impact of Tariffs, Part 2

Editor’s note: This is the second of two articles focusing on strategies that mitigate the impact of tariffs on imported goods. Tax and business advisory firm KPMG identified seven successful tactics in its webinar TradeWatch: Section 301 Tariffs; What we’ve Learned in Year One. This article covers recommendations four through seven. The U.S.-China trade war…

Looking Ahead: What Servitization Will Look Like In the Second Half

The midpoint of the year not only brings new challenges and opportunities, but also provides the chance to reflect and plan for the months ahead. The fast-approaching servitization-centered economy, where companies will no longer sell just products, instead owning the responsibility for the business outcome those products deliver, will encourage a shift to subscription-based businesses…

7 Strategies for Mitigating the Impact of Tariffs

Editor’s note: This is one of two articles focusing on strategies that mitigate the impact of tariffs on imported goods. Tax and business advisory firm KPMG identified seven successful tactics in its webinar TradeWatch: Section 301 Tariffs; What we’ve Learned in Year One. This article covers recommendations one through three. Tariffs, according to leading tax…

Report: U.S. Trade Policies Have Not Triggered Reshoring

The tariffs that President Donald Trump has slapped on Chinese imports haven’t sparked the widespread return of manufacturers to the U.S. that Trump envisioned, according to A.T. Kearney’s latest Reshoring Index. The United States has made significant changes to its trade policy with the specific intent of bringing manufacturing home. However, imports from 14 traditional…

ADI, Arrow, channel realignment

Nations Woo Manufacturers in Wake of China Tariffs

Editor’s note: As China’s labor costs increase and tariffs disrupt the supply chain, other nations are lobbying for manufacturers’ attention. Recently, a Vietnam-based manufacturer announced it could help U.S. electronics companies avoid tariffs on Chinese imports.  EPSNews reached out to a number of sources for input on this topic, and heard from Maxine Gordon, Regional…