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Posted On: 01/25/2024 3:08:44 PM
Post# of 13035
Still trying to understand the benefit of establishing a manufacturing facility in the United States.
Cost - anyone done a cost comparison of importing product from China and paying the 25% tariff compared to what it would cost to set up a facility in America? The tariff would still apply to all raw material imported from China - capacitors, resistors, relays, lithium ore, etc. The labor cost in America is substantially more than China. The exchange rate of the RMB to the US Dollar is negative. I assume their would be the servicing of finance for a facility, greater government governance, etc.
Supply chain - don't see where leadtimes would be reduced due to the importing of lithium and other raw material.
Not striving to be argumentative, striving to understand the assumptions made in believing a US manufacturing facility would be a market advantage? I do think the importing of finished product from China and setting up a distribution center could be of benefit, assuming there is margin for this additional channel.
Thoughts?
My opinions.
Cost - anyone done a cost comparison of importing product from China and paying the 25% tariff compared to what it would cost to set up a facility in America? The tariff would still apply to all raw material imported from China - capacitors, resistors, relays, lithium ore, etc. The labor cost in America is substantially more than China. The exchange rate of the RMB to the US Dollar is negative. I assume their would be the servicing of finance for a facility, greater government governance, etc.
Supply chain - don't see where leadtimes would be reduced due to the importing of lithium and other raw material.
Not striving to be argumentative, striving to understand the assumptions made in believing a US manufacturing facility would be a market advantage? I do think the importing of finished product from China and setting up a distribution center could be of benefit, assuming there is margin for this additional channel.
Thoughts?
My opinions.
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