Working Through the Tumult

Some of our clients are having to contend with new tariffs on their products resulting from the U.S.-China trade war. We are working with them to make sure they remain compliant amid changing trade rules. Of course, the coronavirus has also hit China, and many factories there were shut down. Avela Corp has made sure our clients kept their proper place in the queue as Chinese manufacturers restarted their operation while their workers trickled back into work from state-ordered quarantines. Our staff continues to provide services such as quality assurance and production management. While in-country travel restrictions did impact this somewhat, we were able to provide these services to a degree far superior to those outside China coping with international travel bans.

Some of our clients have made a business-based decision to move their manufacturing out of China. Avela sources manufacturing elsewhere in the Asia-Pacific Region (APAC) and we have helped them to successfully transition to sources in Cambodia and Vietnam.

Now the closing of the U.S. and Chinese consulates has ratcheted up tensions to another level. Something that we urge both our clients in the United States and our business contacts in China to consider is that such high-level diplomatic decisions are made on a plane far above those of us in both countries who are simply trying to run our businesses and make a buck through manufacturing. Our countries’ respective Presidents have their reason for doing what they do. We, in the meantime, can simply press on as best we can.

Overall, Avela has fared quite well while pressing on in behalf of our clients—and so have our clients. Despite all the tumult, 2020 has turned out quite well for us so far. This is no accident.

Part of this success results from taking the time to find good fits for enduring business relationships. Drawing on the experience of our offices in Houston and Shanghai since 2002, we accept clients that are good fits for Avela’s way of doing business. Then we apply that same experience to finding manufacturers that are good fits for our clients’ needs. We also plan for the long haul, at least 12 months out, and when the unexpected occurs, we all respond as a team.

If you are reconsidering your manufacturing sourcing options in light of current events, or need assistance dealing with the changing China trade landscape, contact Avela and we can discuss how we might be able to work through these challenges together.