The US and China are the largest and the second-largest trading nations in the world, respectively. They are also each other’s most important trading partner. However, despite China and the US being each other’s largest trading partner, there is still significant friction and potential conflict in their economic relations.
Deteriorating US-China Relations
When Donald Trump won the 2016 US presidential election, the two nations had already been entangled in a trade war. There is no doubt that American perceptions of China changed dramatically in the last decade, but now things have truly intensified.
China has announced plans for an 8% increase in the average tariff that US exporters will face when accessing the Chinese market, and has also cut its tariffs towards non-US exporters considerably.
US President Trump recently said in a tweet that US companies have been ordered to leave China, bring their companies home and make their products in the USA.
Why China’s new tariffs are bad news for US companies in China
- US companies are already cutting costs, putting off investments and paying extra to build up inventory to cushion the impact of China tariffs.
- Some companies are postponing decisions, such as building factories.
- Companies are rerouting supply chains and relocating production to mitigate exposure to the trade war. These are moves that can take years to pull off.
Why Arka Chooses The US as A Manufacturing Base
Arka proudly manufactures its products in the United States. We have chosen the US as our manufacturing base for a good number of reasons.
When looking for a manufacturer that will provide you with quality, savings, and a quick turnaround, it’s essential to consider the location of your facility. While many companies are moving overseas in search of cheaper production and labor costs, it often pays to keep your company based in the US.
Advantages of Operating in The US
- Choosing US based manufacturing means creating jobs and supporting the local and national economy which further stimulates the economy at all levels.
- When you choose to keep your manufacturing in the US, you’ll save significantly on inbound and outbound delivery and shipping costs.
- Manufacturing in the US not only saves you money on logistics costs, but it also saves you valuable time in the production process.
- Cutting down on transit and delivery costs not only saves money but energy, making the US manufacturing a much eco-friendlier option.
- By being geographically closer to your production facility, you’ll be able to execute tighter control over the manufacturing process, allowing you to ensure that all products fit set standards and specifications. If a problem should arise, you’ll be able to catch it and correct it more quickly saving valuable time and money in the long run.
- US manufacturing also allows you to enforce greater safety practices in your facilities to help protect your workers.
- Customer service is an integral part of any company’s success, and it’s often majorly influenced by the geographic location of your customer service representatives. By locating your customer service in the US, customers feel a personal connection between themselves and the people handling their service issues.
- By keeping your manufacturing firm in the US, your taxes will support the community that you and your employees live in terms of infrastructure, social programs, and more.
Together, these benefits present a solid case to keep manufacturing companies in the US. While overseas manufacturing might seem like a cheaper option for many companies, in the long term, the benefits of keeping your manufacturing facility domestic far outweigh the short-term benefits of moving your facility abroad.
Final Thoughts
Here at Arka, we provide affordable, world-class packaging solutions. You can choose from a range of Kraft boxes that are eco-friendly, durable and inexpensive. Or, if it is white boxes you want, then these are available in multi-color, clear print and with a high-quality finish.
Arka can help you meet cost targets as we can undertake orders of as little as 10 custom boxes. You can even custom design your own custom shipper boxes or custom mailer boxes today at prices that are simply too good to miss. Get in touch today to find out more!
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