Moving EMS manufacturing to Mexico and other EMS CEO concerns amid tariffs and rising costs

By Staff

The CEO of a west coast USA EMS provider serving non-traditional markets reached out recently, “I am looking for an option to move some business to Mexico due to costs for our customers. Do you have some recommendations?”

Another EMS CEO with operations in California and China also reached out to Venture Outsource, seeking additional/alternative locations for EMS factories because of tariffs impacting their operations in China.

Where do opportunities exist for EMS providers to expand your service offerings? Which EMS providers and geographies are complementary to yours? Venture Outsource has answers to these questions and more and has helped large and small EMS providers worldwide.

Expand and improve

With changes to tariffs and duties impacting manufacturers and rising materials and labor costs, we remind EMS providers to always look internally for costs savings and ways to drive workflow accuracy, timeliness, and productivity execution across your organization for costly indirect EMS labor (sales and marketing staff, manufacturing and program managers, test engineers, buyers, planners…) your second largest cost for every EMS provider (S,G&A), right after MCOGs.

And for EMS providers ready to explore building or acquiring new factories, joint ventures and mergers, we suggest you read this article about EMS JV/M&A and fill in the form (same page).

For additional EMS industry market research and briefings learn more here

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