PMCI’s December 2018 article in Circuits Assembly looks at regionalization strategy:
As I write this, a trade deal with China that will eliminate the tariffs appears to be in development, but China is continuing to talk tough. The tariffs are causing significant pain to manufacturers in both the US and China, so I suspect some type of deal will happen eventually. In the meantime, the tariffs motivated many companies to look hard at the geographies involved in their outsourcing strategy. Some OEMs have moved or are in the process of moving some of their business, and a much larger number are thinking about it. I think it is important to carefully weigh the pros and cons. Read the full article here.
My latest article in Circuits Assembly looks at the conversation many contract manufacturers and Mexican shelter companies are having with their customers: what happens if a border tax is implemented? From a sales and marketing standpoint there are definitely steps to reassure customers and formulate contingency plans that should be taken now. Read more here.
In my latest column in Circuits Assembly, I look at the challenges associated with establishing an operation in Mexico. The increased cost competitiveness of Mexico’s manufacturing, migration of automotive and aerospace clusters, and a lessening of the violence that has plagued the country for much of the last decade have incentivized a new wave of US-based regional manufacturers to look at the benefits of opening operations there as a the next step in their expansion plans.
That said, Mexico remains a country full of complexity when it comes to establishing a viable operation. There isn’t one right answer for best location or business structure. This month we look at some of the tradeoffs to consider when establishing a small operation in Mexico. Read more here.
Last week I had the pleasure of moderating a panel on Nearshoring: Addressing the Sourcing Equation as part of the Real Time at IPC APEX video series. I also did several other interviews, which I’ll link in other columns.
Gary Burnett, President and CEO of Burton Industries; Curtis Campbell, VP Sales West Coast Operations, SigmaTron International; and Mike Baldwin, VP, Spectrum Assembly, Inc. share their views on Nearshoring both domestically and in other parts of the world in this video clip.
Nearshoring: Addressing the Sourcing Equation