Asia-Pacific (APAC) Options

Avela Corporation is happy to say that despite sometimes-tense US-Chinese trade negotiations and a maturing economy, China manufacturers are still open for business. That said, the Asia-Pacific region continues to become an increasing competitive option for manufacturing sourcing. Avela considers the region, not just China, when assisting our clients with the right fit for their product manufacturing.

Japan, Malaysia, Singapore, South Korea and Taiwan are economic powerhouses along with China, while countries like Cambodia, Indonesia, Thailand and Vietnam are proving to be increasingly dynamic players. These countries are improving their infrastructure to support new manufacturing facilities and manufacturing capabilities.

Just as some areas of China specialize in certain types of manufacturing, some countries specialize as well. There are a number of reasons for this, such as the skill level of the available workforce and transportation capacities. The challenge is to find the best fit for the best deal, taking quality, logistics, tariffs and other factors into consideration.

It’s the same thing we have been doing in China through our offices in Houston and Shanghai since 2002… only now the geographic area is expanding.

As time progresses we expect to see the same evolution of Capitalism experienced in countries like China, Japan and South Korea to be experienced by their industrially emerging neighbors. With a maturing manufacturing base and increasing middle class created through industrialization, the “rising tide that lifts all boats” will come to their shores. In fact, a UN Study predicts 80 percent of the world’s middle class will live along the Pacific Rim by the year 2030.

Some of the region’s infrastructure improvements are part of China’s multibillion dollar Belt and Road Initiative(BRI), an ambitious program to create a network of commerce over half the globe with China at its core. Sometimes the BRI is called the “New Silk Road” and it holds promise for enriching the region. Some fear it could become a web of debt, however, as some countries need to borrow to finance their contribution to the BRI, and some of those are having difficulty making their payments. There are fears that some participating countries will be forced to relinquish some of their independence in order to compete. With the added uncertainties surrounding the trade negotiations, the business situation is fluid and dynamic.

But isn’t that always the case in business?

It is a matter of risk and reward, and the object is to manage risk. That is where a sourcing company like Avela gives you the competitive edge. We are your feet on the ground in the Asia-Pacific, weighing all the factors to find the manufacturer for your needs and goals.

Of course, there isn’t any crystal ball to tell anyone what the future holds with any certainty. That being the case, the wise course of action is to have a “Plan B”, “C” and maybe a “D” if a changing landscape makes your “Plan A” no longer viable. Avela can provide you with backups. Solving sourcing problems is what we do.

Contact Avela to discuss your manufacturing sourcing needs. We can find the right fit and manage your project all the way through to delivery at your warehouse.