Your challenge:

You have had a strong Teir-1 contract manufacturer in China for years,

• But the 20%+ tariffs are now eating your margines for lunch.
• On-shoring sounds interesting, but the retaliatory tariffs from your international markets will damage a strong section of your business.
• What’s more, the higher domestic costs still leave you with a higher cost, lower margin, and longer lead times…even factoring in the tariffs.
• You know you should be qualifying new suppliers in locations like Vietnam, but the sheer effort, time, costs and risks in a new market with unknown language and cultural challenges involved gives you pause.
• And what if tariffs are imposed on your new CM? How can you possibly manage multiple locations and stay ahead of the game?

Your competitors are raising their prices to offset the tariff. There is opportunity here…So how do you get out ahead of this and stay there?

How do you turn tariffs into your competitive advantage?

• REDUxEngineering (https://reduxengineering.com/ )has a global network of pre-vetted contract manufacturers, across plastic, metal, and electrical, in multiple tariff-free zones saving you months of expensive qualification efforts.
• We also have quality audit staff on the ground at these locations to ensure the product going into the container meets your requirements, saving you headcount.
• REDUxEngineering supports your staff in any contract manufacturer transfer allowing you to respond quickly and cost effectively to market changes, providing you safe, nimble access to multiple markets without the associated costly overhead.
• The REDUxEngineering team also provides design for manufacturing inputs that add another layer of savings to your regional shift by optimizing your design for shipping, inspection and assembly.

But, “I haven’t budgeted for any consulting or third party expenses”.

REDUxTARIFFS^TM (https://reduxengineering.com/reduxtariffs/) delivers 2x to 4x return on investment! It not only pays for itself, but it also delivers an ROI that would make your broker blush! These are not just idle claims:

REDUxEngineering operates on a contingency-based model. We are paid 20% of what we save you. If you don’t save, we are not paid.

What’s more, you never pay REDUxEngineering. There is never any extra expense to budget for. You validate what we have saved you and then authorize 20% of that savings to be added to the contract manufacturers price. REDUxEngineering is paid by the contract manufacturer, and only after you have banked the verified savings. You always save 4X what REDUxEngineering is paid.

Now you can rapidly and safely diversify your manufacturing to Vietnam with little cost, time or risk. REDUx is there to support you as an extension of your supply chain strategy. You can also rest assured that if needed, you can now quickly and safely diversify to another market, such as Indonesia.

So, while your competitors are either stuck in China, sucking up the tariffs, or bogged down in on-shoring, suffering international tariff retaliation, or stalled trying to source, qualify and transfer their manufacturing to one other location on their own…you have turned tariffs into your competitive advantage with REDUxEngineering and our REDUxTARIFFS^TM service with no financial burden and an enhanced competitive position that you can efficiently sustain, come what may.

Hop on our Calendar for a complimentary 20-minute assessment: https://app.apollo.io/#/meet/david_orton_b36

You have nothing to lose and everything to gain.

Case Study:

A California-based electronics manufacturer has had their printed circuit board sub-assemblies manufactured at a large EMS in Dongguan, China for the last ten years. Their annual purchase volume is $5M USD. Because of the size and specialised focus of the EMS, the quality and delivery of the product is excellent and the costs, up until recently, allowed them to save $3M annually over what they had been paying domestically, prior to the shift. With the new tariffs, their cost base on these volume subassemblies jumped $1M overnight.

After engaging with REDUxEngineering, the client reviewed their PCBA design with REDUx and received a design for manufacture report on their subassembly which had not had fresh eyes on it in some time. A DFM 10% cost reduction was identified, and the inputs were incorporated into the design package by the client. REDUx’s pre-vetted teir-1 EMS in tariff-free Vietnam quoted on the PCBA and, due to the newer technologies employed and labour rates at 50% of China, an additional 10% cost reduction was realized. REDUx facilitated a site visit by the client to ensure that the EMS met with their approval. Normal first articles were delivered, tested and approved and the client’s Finance team validated that their post tariff $6M annual spend was now reduced to a landed cost of $4M. The REDUx fee of 20% of savings, or $400K was added to the EMS COGS and the client now paid $4.4M annually instead of $6M. The net $1.6M annual savings, vs their competitors, allows them to turn tariff turmoil into enhanced margin and a better competitive position. Should the winds of change blow again, REDUx is ready to help them pivot with ease and security.

Their competitors…not so much.

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