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…

Use TCO as a Sales Tool Against Offshore Competitors

Sixty percent of companies make offshore-sourcing decisions based on rudimentary metrics, such as wage rate, ex-works price or landed cost, often resulting in a 15 to 30 percent understatement of actual offshoring costs. Inclusion of all relevant factors—overhead, balance sheet, risks, corporate strategy and other external and internal business considerations—provides a better determination of the…

manufacturing, tariffs, factory,

U.S. Factory Activity Slows; Tariff Worries Accelerate

Even though U.S. manufacturing activity remains robust — the nation’s leading production index, the PMI, registered 58.1 percent in July — the industry’s concern over tariffs has reached a new high, according to the Institute for Supply Management. The demand picture for U.S.-made goods remains positive, said Tim Fiore, chair for the ISM’s manufacturing business…

electronics, components, tariffs

Tariff & Supply Anxiety Increase Even as Manufacturing Grows

U.S. manufacturing activity accelerated in June—but so did anxieties around electronic component shortages and tariffs. The Institution for Supply Management’s leading production index, the PMI, increased by 1.5 percent in June to 60.2. However, electronic component constraints are being felt across multiple manufacturing sectors. “Electronic component supply issues continue to disrupt production,” a transportation industry…

Study: Pace of Reshoring Decelerates

The trend known as reshoring remains controversial, depending on how success is measured. Many companies have been persuaded by incentives to not move offshore, and several large electronics manufacturers, including Apple Inc., have opened factories within the U.S. But when compared with the number of companies moving to other regions, reshoring comes up short. In 2015,…

Is the Industry Ready for Off-, Right- and Near-Shoring?

The high-tech industry has spent the better part of two decades working the kinks out of a supply chain that expanded rapidly into China. In addition to the bureaucracy the move entailed – many companies had to partner with a Chinese company in order to literally get a foot on the ground—the logistics of designing…

Reshoring: A Reality Check

For those who are not fans of TV’s Saturday Night Live, Debbie Downer is a character that finds the dark cloud in every silver lining. A.T. Kearney may just be the Debbie Downer of the U.S. manufacturing industry. An A.T. Kearney report released late last year concluded that the trend toward reshoring manufacturing in the…

Distribution: Masters of Problem-Solving

As electronics component sales and service organizations, distributors assist customers in a variety of ways. Master Electronics of Santa Monica, CA, prefers to call its role “problem-solving.” “We will do anything at this company that makes business sense for ourselves and the customer,” says Riad Nizam, vice president of sales for Master Electronics. “If you…