2019 has been a challenging year for the economic relationship between China and the US. The Trade War between the two countries has been one of the biggest headlines in the media over the past year. As of now there is no short term sign that things are going to improve so companies so companies are urgently exploring alternatives to China.
The Trade War has created a lot of challenges for US brands and companies in this situation, especially in the area of consumer and commercial products. These products have traditionally been produced in countries like China that have a lower labor cost than the US and other developed countries. Goods imported from China now have a 25% to 35% import tariff which is forcing US firms to increase their prices or face being unprofitable!
We have a number of solutions to help companies avoid the 25% to 35% import tariff. We evaluate their current manufacturing supply chain and explore fast and cost effective strategies. For companies that have existing manufacturing set up in China we provide a Semi Knocked Down supply chain solution that involves delivering the partially assembled products from China to Thailand, reviewing the sourcing of off-the-shelf components and arranging the packaging manufacture, packing, quality control and export of goods from Thailand. For companies that are looking for an alternative to China, to set up the manufacture of new products in Asia, we advise on the ideal location and build the new manufacturing supply chain from this.
The team at Detekt have extensive Asian manufacturing experience that allows them to provide highly customized Supply Chain Solutions. With team members on the ground in China and Thailand they are able to deliver single-country or dual-country solutions to best suit your needs.
Let us know if you need any other information about our Trade War Solutions and how we work with our clients.