Navigating the challenges posed by U.S. tariffs levied on Chinese goods can be daunting. With the right partner, companies can make the most of the current trade climate, and in some cases, use it to their competitive advantage.

With nearly 50 years of experience in international production and supply chain management, Pivot International is uniquely positioned to offer powerful solutions to problems posed by geopolitical events, climatic disruption, or currency fluctuations. As a single-source design, development, and manufacturing firm, Pivot has the resources to help.

Here are 4 things your company should consider in relation to the current U.S.-Chinese trade tensions.

1. The Philippines is a highly reliable and attractive alternative to China-based manufacturing.

Home to some of the most advanced and innovative manufacturing technology, such as mirrored SMT systems (like those in the Pivot owned Manila facilities), the Philippines is a valid alternative to China. With one of the fastest-growing economies in Asia, a quarter of the Philippines’ GDP derives from manufacturing. The country is also in the process of renovating its infrastructure with President Rodrigo Duterte’s “Build, Build, Build” plan. The Philippines also boasts a highly educated and skilled workforce.

2. Diversifying your supply chain is always the right choice.

Regardless of the trade climate, companies that strategically maneuver within the global marketplace can protect themselves against disruption to their supply chains. A diversified supply chain, moreover, can minimize the effects of natural disasters, geopolitical turmoil, and any form of potential economic disturbance.

In the words of Syracuse University economist Mary Lovely, “Businesses aren’t seeing the trade conflict calm down. They’re actually probably seeing it escalate. So this may be the time that firms actually say, hey, this is going to be around for quite a while, and maybe it’s the time for us to start making the investments that we need.” This is the time for seizing business opportunities that may have otherwise been overlooked or postponed.

3. Domestic manufacturers have their advantages.

In addition to seeking suppliers outside of China, turning to domestic manufacturers is also a practical choice. American production facilities are known for offering greater IP security, flexible payment options, and reduced shipping costs. U.S. manufacturers also tend to have high labor standards, which help contribute to the positive image that is already associated with domestic companies.

4. Bigger is not always better.

Smaller manufacturers can avoid the regulatory costs that often hit their larger counterparts and are often highly service-centric. They also tend to be agile, which should be a core competency of any manufacturing partner your company might consider.

U.S. consumer-goods companies that are currently trying to move away from China-based manufacturing facilities have options. In fact, some of the challenges resulting from China tariffs can translate to competitive advantages for American businesses. Ultimately, by staying informed and flexible, your company can successfully weather the current trade climate.

At Pivot International, we offer end-to-end supply chain solutions and viable alternatives to China-based manufacturing. If your company is currently confronting production liabilities, we can help. Contact us today.