I love it when today’s politics and current events end up in popular television. I recently finished the second season of Netflix’s House of Cards and my ears always perked up when I heard them mention China. We emphasize Reshoring and helping clients consider bringing manufacturing back to the U.S., I found it interesting that they acknowledged the economic power that China now has.
We have often stated, and will state again, that we are not suggesting that you move all of manufacturing out of China! China is now one of the largest markets in the world and the manufacturing you do in China should support that market. What we suggest is that you bring some (10-15%) of your manufacturing back to the U.S. to support our market. But not just any 10-15%. You have to be smart about bringing back products that will sell well in the US, production that can be automated and operations that can be cost-competitive.
We also suggest that you start expanding your target markets. Does your product meet a need in more than one market? How about a tweak in the design or formula, will that meet a need in an emerging market?
In January, Bloomberg released 2014’s top Frontier and Emerging markets. China, as expected, is still at the top of the list but some of the other countries were surprising.
Central and South America are becoming strong players and the market there is increasing at a double-digit pace. Several Eastern Europe and African countries also made the list. If you are not creating products that serve the needs and wants of these individual global markets someone else will. Being first to market isn’t a dead catch phrase, they are still words to work by.
Even with these new markets and products, it’s important to remember your roots and the people that established your brand. Manufacturing products for the U.S. (and Americas) in the U.S. will not only enable you to meet the needs of your customers , it will also enable you to make changes faster, bring new products to market faster and restore the trust that your customers have in you. Got questions? Contact us and we will help you determine how much and what manufacturing to bring back to the U.S.!