The trade war with China rages on, with no sign of letup. Much of what is now manufactured in China now faces a 25% tariff, and more product lines will be hit on September 1st. This week showed a tactical escalation, the U.S. will raise duties on $250 billion in Chinese goods to 30% and increase tariffs on another $300 billion in products to 15% from 10%.
The Changing Patterns of the World’s Supply Chains
The two countries have not been able to reach consensus on a trade deal, and because of the resulting U.S. tariffs on Chinese goods, nations the world over have begun to shift their manufacturing supply chains out of China. This realignment is described in a New York Times article entitled One Trump Victory: Companies Rethink China. The process is called decoupling, and it “is is a major goal of those who believe the world has grown far too dependent on China as a manufacturing giant.”
Manufacturing supply chains worldwide are changing – permanently. None of this will have any ill effect on GRE Alpha customers, because our company has had the foresight to establish manufacturing in multiple facilities including Vietnam.
Vietnam: A Strategic Solution to the U.S./China Trade War
The exodus has already begun, and is described in the starkly titled New York Times article Your Next iPhone Might Be Made in Vietnam. Thank the Trade War. While others may be struggling to find ready-to-use factories and warehouses GRE Alpha already has that covered.
When the Consumer Technology Association (CES) spoke to Richard Fong, GRE Alpha’s Manufacturing executive director, it was noted that, “Vietnam is a very natural and advantageous location for us to increase our manufacturing capabilities.” Because of our affiliation with GRE Manufacturing, our LED drivers bound for the U.S. are shipped directly from Vietnam, avoiding the excessive tariffs. Within those factory walls GRE Alpha is producing some of the world's most advanced and reliable LED lighting components, including the SLD-DIM-XG4, our four channel Bluetooth dimming module.
GRE Alpha is no newcomer to Vietnam. We established our first Vietnam factory in 2013. Our factory located in the Vietnam Singapore Industrial Park (VSIP) about 40 minutes away from Ho Chi Minh City. It offers more than 300,000 square feet of ISO 9002, ISO 13485 and ISO 14000-certified manufacturing space.
And we’re not alone! Our factory is situated alongside 700+ manufacturing companies from around the world, with established transportation, logistics and supply-chain infrastructure.
Source: GRE Manufacturing
Manufacturing electronics in Vietnam has advantages aside from the avoidance of the China tariffs. The median age in Vietnam is only about 30, giving manufacturers the advantage of a youthful, vibrant and flexible workforce. The well-educated population has the same solid East-Asian work ethic, and wages are competitive.
The response of our U.S. customers to our Vietnam facility has been overwhelmingly positive. Buying LED drivers made in Vietnam is a sure-fire way to beat the U.S., - Chinese trade war.
Customers will continue to benefit from the full line of our LED driver and power supply lines without paying the 25% China tariff. We strongly advise our customers to place their orders as early as possible so that they can get their products by the end of the year avoid disappointment.
About GRE Alpha
GRE Alpha Electronics, Ltd. specializes in the design and manufacturing of solid-state lighting power supplies and lighting control accessories, the lifeblood of indoor and outdoor LED lighting systems. With over two decades of power conversion expertise and a commitment towards innovation, GRE Alpha engages with industry pioneers to deliver highly efficient, installation-ready, and agency-approved LED power conversion products for a wide variety of industry applications.
For more information about the products featured here or any other GRE Alpha products or services, please visit the contact page. Our support team is always happy to help.
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