Steve Madden is shifting handbag production to Cambodia; Vietnam is sucking up some production for Hoover-maker Techtronic Industries; Google’s hardware maker Flex is searching for new production centres from Mexico to Malaysia.
The escalating Sino-US trade war is pushing China-based manufacturers and their US clients to rethink the complex and extensive supply chains that bind the world’s two biggest economies closely together.
“While China will remain an important part of our global manufacturing platform for the next decade, we have accelerated the ramp-up in other low-cost countries and the US,” said Joseph Galli, chief executive of Techtronic, which makes the majority of its power tools in China and generates three-quarters of its revenue from the US for products including Hoovers. “The focus on Vietnam in the short term is offsetting the future tariff impact we might see in the US.”