Posted on 06/08/2020 9:34:11 PM PDT by SeekAndFind
WASHINGTON—The CCP virus pandemic has put global supply risks into the limelight, and recent data compiled by a Hong Kong-based supply chain inspection company shows that U.S. firms have already started moving their sourcing away from China.
A manufacturing exodus was already underway due to the uncertainties created by the U.S.–China trade war in 2019. The CCP (Chinese Communist Party) virus, also known as the novel coronavirus, has accelerated that trend and encouraged more companies to reduce their excessive dependence on China as a single supplier.
Much of the manufacturing is moving to Southeast Asia and South Asia, according to a report by Qima, a Hong Kong-based quality control and supply chain inspection company. The Qima report is based on data collected from tens of thousands of supply chain inspections conducted globally for consumer goods brands and retailers. Companies use these inspection reports to make decisions about whether to migrate to a new supplier.
In the first two months of the year, demand for inspections and audits from North American buyers increased by 45 percent year-on-year in Southeast Asia, with Vietnam, Burma (also known as Myanmar), and the Philippines reaping the benefits, the report stated.
Meanwhile, the demand for supply chain inspections surged 52 percent in South Asia, with Bangladesh becoming a more popular destination, especially for textile and apparel brands.
In addition, a poll by Qima conducted with more than 200 companies in late February showed that 87 percent of respondents believed the pandemic would trigger significant changes in their supply chain management going forward.
To mitigate supply shortage risks arising from factory shutdowns in China, more than half of respondents also noted that they had already begun switching to suppliers in regions unaffected by the virus.
(Excerpt) Read more at theepochtimes.com ...
There should still be tariffs on any business outside the USA, sending products here...if only to balance the cost of regs, like clean air and water, etc.
In my best Mr Burns voice from the Simpsons*
“Excellent...”
I don’t disagree, but there are many things that can’t be made in the US because of those and other regs. Some balance must be struck... That said, right now it is more important to get production brought home or at the very least ABC’d - Anywhere But China. That country’s export economy needs to be broken.
Excellent, but really?
Really?
There’re leaving major U.S. cities because of riots that were triggered by imaginary racism.
Where will they go?
Scare the Chinese communist bastards
Fire up the good people of China and the two hundred MILLION CHRISTIANS!
Overthrow them !!
Should 100% quit all CommunistChina, but also skip Communist VietNam.
Our capitalist allies Taiwan and Japan are more than better options.
And SoKorea, Philppines, others ...
Tariffs on the first half of Chinese imports mostly focus on commodities, low skill/wage products (like textiles) and industrial goods.
If the second half of goods gets levied with similar (25%) tariffs, it will be the more high end products, like electronics. That production would likely shift in a different way from the first half, with different countries benefiting relatively more or less. India, for example, has a chance to score big, if they can muster a business-friendly tax and regulatory environment.
If the second half of the tariffs drops, it would especially hit the Pearl River Delta “Mega City” area near Hong Kong (ShenZhen, GuangZhou).
I doubt Donald will ease any tariffs.
Trump has, and continues to eliminate thousands of regulations.
The Chinese people have no weapons. The CCP has all the hardware.
The Philippines should be HIGH on any company’s relocation list. Over the past 10 years, infrastructure has made MAJOR improvements:
Roads -super highways,
Internet -fiber optics many new places,
High-rise condos even in the provinces outside of Manila
Good malls in ‘every’ city with 500,000 or so people,
Upscale restaurants and all-you-can eat buffets
The main thing lacking is a good rail system to help de-clutter the roads in and out of Manila from trucking
VERT WELL educated English-speaking workforce full of industrious people for every job.
No, I DON”T work for the Chamber of Commerce...Just a retiree of 20 years residence who marvels at the changes for good
Vietnam.
It’s like China, without everything you don’t like about China.
:)
But Trump can’t do anything about the lunatics in state capitals.
Upstate NY desperately needs manufacturing jobs.
But I don’t think we’ll ever get a big company to site in NY again, especially after the last few months. There’s not enough bribe money.
Plenty of small towns in America need jobs, they are bunched close enough to supply workers.
I live in one, biggest employer is KROGER’S. People have to go into Memphis for jobs and medical. 1 GP, 1 Pediatrician.
2 drug stores, Kroger’s, Walgreens. No factories.
Nails/fast food.
“Where will they go?”
If they have any sense, Red States.
L
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