“China will soon account for less than 50 per cent of US imports from low-cost countries in Asia as Western firms shift supply chains out of mainland China”, according to Holger Zschäpitz author of ‘Schulden ohne Sühne?’ a book on states’ addiction to debt. The graph below depicts US imports from China, Thailand, Malaysia, India, Vietnam, Taiwan.
Four OEM supply chain relocation scenarios
The trend of electronics OEM decision makers seeking non-China locations for outsourcing their electronics manufacturing is not likely to let up soon. US electronics OEM equipment business models desiring to create new or alternate, anti-China extended EMS manufacturing supply chains include:
- US-based OEMs with production in one region, yet product consumption takes place in another region
- US-based OEMs with local production that sell locally
- Foreign OEM companies with local production that also sell locally
- US-based companies with production in the US and consumption predominantly takes place in the US
Readers considering India can also listen to this podcast with comments from Venture Outsource management consultant Mark Zetter. Additional content about manufacturing in India can be found on our website, here.
When vetting and selecting EMS manufacturers, equipment manufacturers are increasingly focus on comparing EMS quote pricing of services for optimal total landed cost and pricing when negotiating with EMS partners. Read about successful outcomes working with Venture Outsource, here.
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