Insight – Takeaways from Apparel Sourcing USA

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Insights: What I Learned In Supply Chain This Week Series
Takeaways from Apparel Sourcing USA
Tags: Global Supply Chain, First Mile, China, Tarrifs, International Trade, Import
Dallas-based startup empowers businesses to optimize international trade.
This week I attended Apparel Sourcing USA / Texworld in New York. I talked to suppliers from all over the world, and there were a couple of takeaways.

The Chinese suppliers were universally encouraged by the 7.5% reduction in tariffs scheduled for February, and are hopeful they can regain business lost during the tariff increases.

The sentiment generally is that even with slightly higher wage and tariff costs, they can remain competitive based on their productivity and quality. This would seem to be borne out by the attached study showing China as the second most productive nation in Asia (behind Singapore) and significantly higher than for example Thailand or Vietnam.

Of course, China also maintains a huge edge in terms of infrastructure, which makes the overall process more productive (time to market, supplier access, predictability).

Nearly all the suppliers were also touting their 'eco' credentials. The Zeitgeist of sustainability and social compliance are clearly starting to take hold, and are likely to move from marketing to fact, which is a positive.
ABOUT THE SERIES

Each week, Mercado CEO Rob Garrison pens his latest learnings from the supply chain industry as part of a series run for his LinkedIn followers. Each article aims to share a little insight into what's going on that week and to help foster discussion amongst industry professionals across levels, geographies, and companies.

You can connect with Rob on Linkedin by following this link.
GT Nexus founder and supply chain industry veteran, John Urban, has joined the Mercado board of directors.
This week I attended Apparel Sourcing USA / Texworld in New York. I talked to suppliers from all over the world, and there were a couple of takeaways.

The Chinese suppliers were universally encouraged by the 7.5% reduction in tariffs scheduled for February, and are hopeful they can regain business lost during the tariff increases.

The sentiment generally is that even with slightly higher wage and tariff costs, they can remain competitive based on their productivity and quality. This would seem to be borne out by the attached study showing China as the second most productive nation in Asia (behind Singapore) and significantly higher than for example Thailand or Vietnam.

Of course, China also maintains a huge edge in terms of infrastructure, which makes the overall process more productive (time to market, supplier access, predictability).

Nearly all the suppliers were also touting their 'eco' credentials. The Zeitgeist of sustainability and social compliance are clearly starting to take hold, and are likely to move from marketing to fact, which is a positive.
ABOUT THE SERIES

Each week, Mercado CEO Rob Garrison pens his latest learnings from the supply chain industry as part of a series run for his LinkedIn followers. Each article aims to share a little insight into what's going on that week and to help foster discussion amongst industry professionals across levels, geographies, and companies.

You can connect with Rob on Linkedin by following this link.
                       

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Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency