As supply chain has gained in prominence in the media with the increase in tariffs and the many challenges associated with coronavirus, reshoring has become of keen interest. Surveys are showing it is more than just a passing interest with executives. Instead, it is in motion! Listen to my video on this hot topic.
What’s Happening Video Series
Supply Chain: Reshoring
In addition, the USMCA went into effect as of 7/1. Here are a few of the key components:
1) Automobiles must have 75% of their components manufactured in the U.S., Mexico or Canada to qualify for zero tariffs.
2) 40-45% of automobile parts must be made by workers who earn at least $16/hr by 2023, and Mexico agreed to pass new laws that give greater protection to workers.
3) U.S. farmers gain more access to the Canadian dairy market.
4) Intellectual property and digital trade provisions.
5) Sunset clause after 16 years with a review every 6 years.
What Should We Consider and/or What Impacts Could Arise?
As we are all very distracted with everything going on around us, reshoring and USMCA will change the global supply chain scene. They will impact almost everyone in some way or another. Have you figured out what will change and what you should do differently, if anything? If it doesn’t impact you directly, will it impact a customer, supplier or transportation partner? How will that impact you? Lastly, are there risks and/or opportunities for you to consider?
Have you thought of doing an assessment of your global supply chain footprint? What risks exist? More importantly, what opportunities exist with changing conditions? We address these topics as well as many others in my eBook, Future-Proofing Manufacturing & Supply Chain Post COVID-19. Gain ideas and strategies to successfully emerge from coronavirus and thrive in 2021.
Please share your stories, challenges, ideas and successes. Contact us and please join in our free webinar series and listen to our archives.