Industry Today: Why Eastek Setup Mexico Operations Amid a Pandemic


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Industry Today: Why Eastek Setup Mexico Operations Amid a Pandemic

More contract manufacturers seek customer proximity China cannot offer.

Mexico is an important part of Eastek’s strategy to have a more geographically diverse production footprint.

By Dave Vrioni
President and Chief Operating Officer
Eastek International

When I first started working in China more than 20 years ago, it felt like a manufacturing utopia. Everything was aligned to make production affordable, easy, fast, and scalable. Over time, however, things slowly changed and today the reality can be completely different.

For my company and many others, China manufacturing looks less competitive than it once did.  Labor, freight, rent, tariff, and compliance costs have all gone up, some significantly. Intellectual property concerns have yet to be resolved. Supply chain issues have added new uncertainties, on top of those created by mounting political tensions. While China remains a necessary and powerful player in the global supply chain, the advantages that made China the factory for the world have eroded in recent years.  Read the full article on the Industry Today website

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