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Companies leaning heavily on global sourcing? Theyre feeling the heat most, as sudden trade policy curveballs throw procurement plans into chaos. Tariffs on steel from Chinaup 25%and retaliatory moves from Canada and Mexico may turn supplier relationships upside down. What Is Agile Procurement?
tariffs on imports from Canada, Mexico, and China is impacting global trade networks, affecting industries ranging from automotive and electronics to agriculture and energy. auto parts are sourced from Mexico, making the tariff impact immediate and severe. Mexico and Canada have imposed 25% tariffs on U.S.
a leading global supplier of mechanical components for the manufacturing industry headquartered in Japan. The manufacturing and supply chain industries are rapidly evolving and increasingly volatile, fueled by shifts in global tariff and trade policy, geopolitical uncertainty, logistics disruptions, and technology developments.
Automotive: Can JIT manufacturing survive legal disruptions to tariff policy? Automakers must model dual-path sourcing strategies and reintroduce buffer inventory—not just for parts, but for regulatory flexibility. Companies relocating to Mexico may face rapid reversal in cost advantage if emergency tariffs are struck down.
Bowman, SupplyChainBrain In the rush to adjust sourcing strategies in line with current trends in international trade, the answer might be to think small. manufacturers have spent the last few decades consolidating production at gigantic offshore plants, especially in China. It could even entail some degree of domestic production.
Companies that previously prioritized cost-cutting and centralized sourcing quickly found themselves exposed to serious production and distribution risks. In response, many organizations have shifted toward decentralized and regionalized supply chain models, distributing production and sourcing across multiple regions.
Companies importing and exporting goods, be it finished retail products, manufacturing components or materials, now face substantial cost and price pressures that squeeze margins and force difficult pricing, sourcing, operations and distribution decisions.
In Part One of the series , Michael observed that standard sourcing solutions struggle in efforts to support direct materials sourcing because of specific challenges in the software design. He further established the case for why supply chain teams need to context integrated sourcing as well as procurement.
Global manufacturing is realigning. Reliance on distant Asian supply chains is giving way to production closer to home, in Mexico and the U.S. During the pandemic, lockdowns in key manufacturing hubs in Asia disrupted supply of essential components, from semiconductors to medical supplies. In early 2025, the U.S. border cities.
Koganti urged the procurement audience to look for whats referred to as “foresight function” in planning tools, which is capable of enhancing data analysis, scenario generation and trend identification , allowing for more informed and proactive decision-making, albeit with human oversight.
Reported April 24 Over 60% of our business is from products that are manufactured, bagged, assembled or grown in the United States and only 12% of our business is direct imports. Recall, we purchased targeted additional inventory in late fiscal '25 and early fiscal '26, ahead of tariffs. A big thanks to you all for reading my articles.
Find alternate supply sources for the material and goods that are outside the affected tariffs. tariffs on key imports and exports could impact manufacturing costs. Companies that rely on raw materials, auto parts, and industrial components from Canada, Mexico, and China may experience price fluctuations.
That stated, in certain regions such as across Europe and China , the year continues to present economic and manufacturing challenges. Global wide manufacturing activity levels as measured by the J.P. Morgan Manufacturing PMI® contracted once again at the end of Q3. In the specific case of Germany , it is both.
The regulation is designed to provide European consumers with extensive data about the provenance of the items they purchase, all the way back to the sourcing of raw materials. Beyond the promotion of ethical sourcing, it’s also about “how we can extend the life of products,” Balaam says.
As companies across North America and Europe reconfigure their supply chains to reduce dependency on overseas operations in the wake of recently announced tariffs, there is a growing need for fully transparent, granular, and holistic visibility into manufacturing and supply chain operations as a whole. ThroughPut.AI
Tariffs are reshaping sourcing strategies, forcing tech upgrades, and making inventory planning a lot more complicated. Imagine a mid-market fitness equipment company sourcing metal frames from Taiwan. based cosmetics brand sources glass jars from Europe. ports may now route through Mexico.
What was a stable sourcing strategy yesterday may be obsolete today. tariffs on China likely to remain a central focus, many companies are eyeing countries like India for manufacturing relocation. Mexico-Canada Agreement (USMCA). cutting tariffs on Chinese imports from 145% to 30% for 90 days. The result? legal frameworks.
The Deepwater Horizon Oil Spill (2010) One of the worst environmental disasters in history, the Deepwater Horizon oil spill occurred due to the explosion of an offshore drilling rig in the Gulf of Mexico. million gallons of oil and 225,000 tons of methane spilled into the Gulf of Mexico. The result was 205.8
The completed engine is then sent to a vehicle assembly plant in Mexico, traveling through the U.S. Finally, the assembled vehicle crosses the Mexico-U.S. production of alternative models, or halting vehicle manufacturing for the U.S. market in Mexico. without additional tariffs under the USMCA agreement. million U.S.
This in the second half of 2024, businesses front-ended added inventory purchases to mitigate higher costs of goods. Of noteworthy significance was the indication that Mexico overtook China as the largest trading partner for the U.S. Supply chain leaders, strategists and sourcing professionals should make note of such trending.
Supply chain and procurement leaders must now navigate an increasingly complex regulatory environment, balancing cost efficiency with risk mitigation. Its a very dynamic environment, says Jason Clark, Exigers SVP for Manufacturing and Energy, in the webinar Preparing for Tariffs: Steps to Take Now. For instance, a U.S.-based
Hunt, BNSF and GMXT Launch Intermodal Freight Delivery Service in Mexico More from this author Subscribe to our Daily Newsletter! Timely, incisive articles delivered directly to your inbox.
Very often, these scenario analyses are still done in silos by sales, procurement, and finance, often involving home-grown spreadsheet solutions. A notable trend is the shift towards sourcing from suppliers located in closer proximity to reduce reliance on imports and mitigate the risks associated with trade disputes.
Bert Nappier - Executive Vice President and Chief Financial Officer About 70% of Genuine Parts Company’s purchases globally are either in the U.S. Brent Kirby – President Given the uncertainties surrounding current trade deliberations, we would not anticipate significant country of origin changes in our sourcing in the near term.
The damage impacted more than 50 electronics, automotive, and aerospace manufacturers, plus general machinery and materials processors, and medical device and health care companies. In 2025, it will be impossible to avoid conflict and its impact on sourcing, manufacturing, and logistics. companies operating in China.
President-elect Trump has offered that he will be instituting 10% tariffs on China, 25% on Mexico and Canada, and perhaps other tariffs, including on Korean products. He has stated that his intent is to increase the number of manufacturing jobs in the United States. manufacturing activity. manufacturing activity.
The tariffs’ impact on trade would have a wide-ranging effect on consumer goods, even for locally manufactured products that rely on parts from around the world. A substantial portion of items manufactured in the US—from appliances and industrial goods to pharmaceuticals, cars, and electronics—include imported parts.
Tariffs hit hard on the bottom line by hiking up costs across supply chains, thereby affecting sourcing, manufacturing, and distribution decisions. Raw Material Stage: Impact: Tariffs on raw materials, like metals, minerals, or agricultural products, directly increase input costs to the manufacturers. Example: A U.S.
Register here Supply Chain News for the Week: Trump Vows on New Trade War Sends Supply Chain Importers Scrambling Amid President-elect Trump’s proposed tariffs, retailers and manufacturers are working with logistics partners to “frontload” shipments, aiming to mitigate potential cost increases and supply chain disruptions.
The report will be available free for paid Substack subscribers but I’ll provide a summary and a link to the report in case you’re interested in either purchasing it separately or paying for an anuual subscribtion to my Substack articles. The topic/report will finally be on the logistics M&A through the end of May.
The Trump administration is considering 25% tariffs on imports from Canada and Mexico and 10% on goods from China to address trade imbalances and protect domestic industries. These tariffs will raise costs, disrupt supply chains, and force companies to rethink sourcing and logistics strategies.
Pressure for companies to change their supply chains is also coming from domestic political sources. Consumers will continue to want low prices (especially in a recession), and firms won’t be able to charge more just because they manufacture in higher-cost home markets. At the height of the pandemic, Willy C.
At the end of 2024, global manufacturing activity levels remained at a state of contraction amid international trade volume declines. Global Wide Manufacturing Global-wide manufacturing levels as reported by the composite index produced by J.P. Source: S&P Global and J.P. Chinas rate of expansion increased.
At the end of Q1-2025 , global manufacturing activity levels remained at a state of muted expansion amid reported weak production volume growth. Morgan Global Manufacturing PMI posted a value of 50.3 The HSBC India Manufacturing PMI posted a March value of 58.1 in March, down from the 50.6 reported for February.
The Trump administrations recent tariffs on automotive imports from Mexico and Canada have injected significant uncertainty into North American supply chains. Trump Tariffs & USMCA Considerations The imposition of a 25% tariff on automotive imports from Mexico and Canada has created substantial challenges for OEMs and suppliers.
The announcement follows an early March announcement of 25 percent import tariffs being imposed on imported goods from Canada and Mexico , which was subsequently delayed by 30 days in a later announcement in lieu of global financial market reactions. either in Mexico or Canada. The implication seems is that U.S.
According to various published reports, these tariffs will be widely applied to all US imports of steel and aluminum, including from Canada and Mexico , reportedly the top two foreign suppliers of the metals to the U.S. Mexico reportedly accounts for $6.5 and foreign based manufacturers and for customers and consumers.
Mexico-Canada Freight Down in All Modes for April U.S.-Mexico-Canada Mexico-Canada Freight Down in All Modes for April Photo: iStock/grandriver June 27, 2025 SupplyChainBrain Total transborder freight in North America was $126.3 and Mexico totaled $69.7 billion in April, decreasing 8.5% Freight between the U.S. billion, down 13.6%
A three-week window, a high-stakes reset Between July 7 and August 1, companies are re-evaluating sourcing, lead times, SKUs, and supplier exposure. Feb 1, 2025 Executive orders set 25% tariffs on Canada and Mexico. This isn’t a policy debate, it’s a three-week countdown to material impact. president issued a broad tariff directive.
Foxconn Revises 2025 Outlook Contract manufacturing services provider Foxconn ( Hon Hai Precision Industry Corp.) over the next four years through manufacturing partnerships. over the next four years through manufacturing partnerships. downgraded its full-year outlook last week, citing recent appreciation of the Taiwan dollar.
Trump intensifies trade war with threat of 30% tariffs on EU, Mexico President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the major U.S. trading partners failed to reach a comprehensive trade deal.
Hunt, BNSF and GMXT Launch Intermodal Freight Delivery Service in Mexico Freight Forwarding/Customs Brokerage The Top 8 EDI Myths - Debunked! Gives Permission for Drones to Patrol Railways U.K. Issues Food Alert on Jolly Ranchers Candy More from this author Subscribe to our Daily Newsletter! Featured Product Popular Stories J.B.
manufacturing to counter existing high import tariffs. One relates to automotive production sourcing and one to semiconductor manufacturing. based manufacturing facilities over the next two years in a production restructuring and realignment plan. advanced manufacturing investment credits that are available.
Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. Renegotiating USMCA may boost North American trade The United States-Mexico-Canada Agreement will mark its fifth anniversary on July 1. Mexico was the top U.S. Canada or Mexico, or all three.
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