The trade war with China has brought about many changes in America and abroad.
President Trump made it a key issue in his administration to make sure that China no longer got to impose large tariffs on the US, without us doing the same back to them. He was tired of letting China walk all over the US and decided to do something about it.
While a deal is in place, and in the works currently, American companies have already begun to take action.
Check it out…
Patrick Van den Bossche, a partner at Kearney (a global manufacturing consulting firm) released a report this week that details exactly what sort of action is taking place with American business in China.
Three decades ago, U.S. producers began manufacturing and sourcing in China for one reason: costs. The trade war brought a second dimension more fully into the equation―risk―as tariffs and the threat of disrupted China imports prompted companies to weigh surety of supply more fully alongside costs. COVID-19 brings a third dimension more fully into the mix, and arguably to the fore: resilience―the ability to foresee and adapt to unforeseen systemic shocks.
He hit the nail exactly on the head.
Thanks to Trump’s trade war, companies can no longer take easy advantage of cheap Chinese labor. Those tariffs have already made some companies bring their work back home to the US. And now we have the global pandemic affecting the markets. It caused us to realize one very important thing…
What happens when we can’t reach our manufacturing supply lines located across the globe?
America lost our once great resilience by shipping jobs off to China and now its coming back to cause us issues when we need that strength and stability the most.
Luckily, Americans are doing something about it.
Kearney released its seventh annual Reshoring Index on Tuesday, which revealed something big happening.
[The report showed] what it called a “dramatic reversal” of a five-year trend as domestic U.S. manufacturing in 2019 commanded a significantly greater share versus 14 Asian exporters tracked in the study. Manufacturing imports from China were the hardest hit.
This is amazing to hear. It means Trump was right and his plan is working.
Even before the virus hit, American companies were finally beginning to wake up and realize we need to make America great again. I love those words “a dramatic reversal.” We have been losing to Asian manufacturing for years and we are finally fighting back.
The icing on the cake? Out of all of them, China has been the hardest hit.
Just imagine how many companies will move out of China given our current situation.
Its time America, and its time we made it known loud and clear.
SHARE this post and proudly declare – Its time we bring American manufacturing BACK HOME