Blog

Trade war impact on electronic contract manufacturing services
08Oct

Why Work with a Domestic Electronic Contract Manufacturing Services Company?

President Donald Trump’s trade war with China has had a considerable impact on the worldwide electronic contract manufacturing business. With over 1300 products in industries such as aerospace, information and communication technology, machinery, robotics, medical devices, and many other industries, the impact of the 30% increase will have a noticeable effect on any business involved with electronic manufacturing services. Because of this, maybe it is time to reconsider manufacturing electronics right here in the U.S.

Trade war impact on electronic contract manufacturing services

Superior Supply Chain Management

At the moment, most of the tariffs are only impacting complete electronic goods. The cost of most component level electronics such as capacitors, resistors, relays, switches, fuses, connectors and PCB assemblies from Chinese-based suppliers may significantly impact some domestic electronic contract manufacturing companies, especially if they do not source components from multiple countries.

Companies that do have multiple resources for sourcing components will have an advantage over those who do not. So, working with an electronic contract manufacturing company that maintains a strong supply chain and keeps a good supply of components in stock will be able to compete with Chinese electronic manufacturers.

Reduced Delivery Costs

Contracting with a domestic electronic manufacturing services company not only avoids paying extra from the tariffs, but reduces delivery costs by reducing the need for international logistical support for shipping, transportation fuel costs, shipping insurance, and other international fees and taxes. Manufacturing domestically also saves in shipping and transportation costs. You have several options for shipping products using domestic shipping companies and can find a method that delivers within your desired timeframe at the best possible price.

Shorter Lead Times

Another way using a U.S.-based electronic contract manufacturing company can save you money is by reducing the lag time between the production of the product and the sale and delivery of that product to the customer. When you don’t have to account for the time it takes to ship the order halfway around the world, it significantly reduces your delivery time to the customer, and improves customer satisfaction by delivering your goods faster.

Good for U.S. Workers

The rising cost of labor in China has been a concern for international manufacturing companies for some time now, and when you combine this with the increase in costs associated with the tariffs, it makes U.S. domestic manufacturing an affordable option. A good domestic electronic contract manufacturing services company can take advantage of the higher quality standards of U.S. companies, and increased worker productivity to help offset the increased labor costs from manufacturing domestically. Of course, manufacturing in the U.S. also means more jobs and opportunities for our friends, families and communities.

Cascade Systems Technology is a Premier Domestic Electronic Contract Manufacturing Company

Based in Hillsboro, Oregon, CST is a premier domestic electronic contract manufacturing company offering circuit board manufacturing, box build assembly, quality PCB assembly, and many other electronic manufacturing services. Give us a call at (503) 640-5733, complete our online Express Quote Form or send us an email at info@cascadesystems.net to get more information.

Are You Ready to Get Started?

We have a team of customer service experts ready to assist you today!