PIVOT INTERNATIONAL BLOG

Evaluating Manufacturing Alternatives to China in Southeast Asia

Posted: September 1, 2025 In less than 50 years, China has transitioned from a primarily agricultural economy to becoming the global leader in manufacturing, a title it proudly claimed from the US in 2013. Low labor costs and a large workforce led many companies to offshore in China. However, with rising costs and the ever-growing geopolitical tensions, companies are now reassessing their manufacturing needs and looking to other countries as viable options. Labor and operational costs, which was the initial draw for many companies moving to China, are on the rise. Add in the increased regulatory pressures and environmental restrictions and it’s easy to see why companies are looking at alternatives. More recently the US-China trade war and corresponding fluctuating tariffs make it difficult for companies to accurately anticipate the final cost of manufacturing products in China that will be sold in the US. Trade wars also lead to massive supply chain disruptions, such as the delays caused by the elimination of the de minimis rule in early 2025.