Establishing Manufacturing & Sourcing in Poland.: The Why & The How

Webinar:

Establishing Manufacturing & Sourcing in Poland:
The Why & The How

Establishing Manufacturing & Sourcing in Poland

About The Webinar

East West Associates Roundtable with Senior Executives


Who Should Watch?

Executives of US companies:

      • Expanding Supply Chain & Manufacturing to better service European customer base
      • Facing manufacturing, contract manufacturing or sourcing challenges in China

US companies are establishing or relocating to Poland for a number of reasons, not the least is diversification from China. Poland has become a preferred destination as China labor costs and geopolitical concerns increase, and as US/China tariffs remain.

Poland is the fifth largest manufacturing country within the EU and contributes 22.4% of the country’s GDP. Germany is the largest importer of Polish products, followed by the rest of Western Europe.

The leading Polish industrial sectors are automotive, aviation, pharmaceuticals, household appliances, metal products, electrical equipment, electronics, chemical products, and rubber & plastic. As a result, Poland has a large supply chain base of raw materials and component products servicing these manufacturing operations.

East West Associates’ speakers addressed these questions, including:

    • Why are companies diversifying from China and leveraging Poland’s Supply Chain & Manufacturing capabilities?
    • How are US companies developing sourcing, contract manufacturing & manufacturing capabilities in Poland?
    • What industry sectors are finding sourcing & manufacturing success in Poland?
    • How to identify & qualify Polish suppliers?
    • How to conduct Site Selection in Poland to establish Polish manufacturing site?
    • What financial & operational incentives does the Polish government provide to US companies to establish operations on leased or owned facilities?
    • How should our investment strategy be designed to best meet the Polish Investment goals?
    • Can you summarize the Polish/US trade relations and tariff policies?
    • What is the availability & quality of local labor (production & engineering talent)?

Our speakers presented two recent case studies:

    • EWA & a PA-based manufacturing client identifying and qualifying Polish suppliers
    • EWA & a MN-based manufacturing client relocating their European operations from Spain to Poland
Establishing Manufacturing & Sourcing in Poland

Speakers

Mike Jacobs | Chief Operating Officer, Weber, Inc.
  • Responsible for end to end product life cycle, including product management, research & development and end-to-end supply chain and operations functions (Strategic Sourcing, Demand & Supply Planning (ES&OP), Global Manufacturing, Logistics & Distribution and Quality)
  • Former Vice President, Logistics & Material for Rockwell Automation (NYSE: ROK)
  • Director, Global Sourcing – Fabricated Components for Schneider Electric 
Dariusz Pielach | Director, Central Eastern Europe
  • EWA Director of Poland/Central Eastern Europe
  • Resides in Warsaw, Poland
  • Former Project Manager/Director and Interim Manager for Western multinationals 
  • Primary focus in strategic and operational procurement, sourcing, and project management 
Mark Plum | Director, East West Associates
  • Former President of Briggs & Stratton Asia (NYSE: BGG)
  • VP Sales & Marketing, American Standard Thailand & American Standard China
    Establishing Manufacturing & Sourcing in Poland

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    Establishing Manufacturing & Sourcing in Vietnam

    Webinar:

    Establishing Manufacturing & Sourcing in Vietnam

    Establishing Manufacturing & Sourcing in Vietnam

    About The Webinar


    Who Should Watch?

    Executives of US companies who are facing manufacturing, contract manufacturing or sourcing challenges in China or other countries

    Executives of US companies expanding Southeast Asian operational and supply chain capabilities to better service customers


    US companies are establishing or relocating to Vietnam for a number of reasons, not the least is diversification from China. Vietnam has become a preferred destination as China labor costs and geopolitical concerns increase, and as US/China tariffs remain.

    Vietnam has a significant manufacturing base, which was traditionally focused on textiles, apparel, and furniture.

    Vietnam has increased their manufacturing capabilities and are now major producers of consumer electronics, telecom equipment, machinery and auto parts. Samsung produces a third of their total output in Vietnam and is the country’s largest exporter.

    East West Associates’ speakers addressed these questions, including:

      • Why – and How – are US companies developing manufacturing, contract manufacturing & sourcing capabilities in Vietnam?
      • What industry sectors are finding sourcing & manufacturing success in Vietnam?
      • What are the advantages of Vietnam as compared to the other ASEAN Countries?
      • What financial & operational incentives does the Vietnamese government provide to US companies to establish operations on leased or owned facilities?
      • How should our investment strategy be designed to best meet the Vietnamese Investment goals?
      • How does Vietnam compare to China & Thailand? Lease rates? Building costs? What are the relative advantages of Vietnamese Business Park options?
      • Can you summarize the Vietnamese/US trade relations and tariff policies?

    Our speakers briefly presented two recent case studies:

      • How a Minnesota-based manufacturing client established a Vietnamese contract manufacturing arrangement to diversify from China and service the US market
      • Key experiences of a Michigan-based automotive manufacturing plant for an operational and supply chain audit
    Establishing Manufacturing & Sourcing in Vietnam

    Speakers

    Mark Plum | Director, East West Associates
    • Former President of Briggs & Stratton Asia (NYSE: BGG)
    • VP Sales & Marketing, American Standard Thailand & American Standard China
      Establishing Manufacturing & Sourcing in Vietnam

      Presentation

      Jacob Miller | Director, East West Associates (Vietnam)
      • Former Operations Engineer for Caterpillar
      • Focus in Supply Chain development, procrurement process improvements and facility establishment
      • Currently based in Ho Chi Minh
      Establishing Manufacturing & Sourcing in Vietnam

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      Shifting Manufacturing and Supply Chain Operations to Mexico

      Shifting Manufacturing and Supply Chain Operations to Mexico

      Companies have been sourcing and manufacturing in China for many years and enjoyed low labor rates, reasonable logistical costs, and a large supply chain base. However, the economic business model has changed as companies are looking to “localize” their supply chain and manufacturing closer to their customer base.

      companies servicing US and North American customers are actively working to establish supply chain and manufacturing in Mexico to diversify beyond China.

      The trend to diversify beyond China has been caused by a lot of issues, including significant logistical increases, expanding transit lead times, US/China tariffs, increasing Chinese production costs, Covid travel restrictions, etc.

      As a result, for companies servicing US and North American customers, they are actively working to establish supply chain and manufacturing in Mexico to diversify beyond China.

      For companies that serve Southeast Asian and even Chinese customers, we have seen a similar diversification trend from China to Vietnam and Thailand. Additionally, companies servicing European customers are diversifying to Central Eastern Europe for supply chain and manufacturing, rather than China. We do not expect these trends to slow significantly, even if shipping rates and lead times eventually moderate.

      However, Mexico is not always a replacement for China. It does not have the same abundance of suppliers from multiple different industry sectors. Additionally, Mexican suppliers are currently being overwhelmed by the substantial number of requests from US companies looking to diversify beyond China.

      In many cases, these suppliers are not responding to the large number of quote requests or are providing expensive quotes to determine if the company is willing to accept.

      While Mexico does have good suppliers in specific industries, some components and products from China remain less expensive. Therefore, in our analyses, manufacturers are jointly reviewing the Bills of Materials (BOM) to determine which countries offer the best diversification alternatives, e.g., sourcing some products from Mexico and then, supplementing diversification efforts in Central Eastern Europe and Southeast Asia.

      While Mexico has good suppliers in specific industries, some components and products from China remain less expensive.

      US Automotive Manufacturer Example

      As an example, a U.S. automotive manufacturer asked East West Associates to review their Bills of Materials (BOM). East West evaluated both Mexico-based and Thailand-based automotive suppliers for products shipped to the U.S.

      Thailand was a good and less expensive supply chain source for particular automotive parts not currently produced cost-effectively in Mexico.

      The company would have a long lead time sourcing from Thailand, as they do sourcing from China. However, they will not be paying applicable US/China Tariffs and are less susceptible to the geopolitical challenges between the US & China.

      In this case, the Mexico and Thailand sourcing strategy worked well for the Automotive Manufacturer who need to cost-effectively diversify their supply chain network beyond China.

      EAST WEST ASSOCIATES

      About our Operations in Mexico

      East West Associates seasoned executives are based in China, Southeast Asia, Central Eastern Europe, Mexico and the U.S. We are uniquely qualified to provide pragmatic support to companies that need to diversify their supply chain and manufacturing.

      The East West Associates Mexico team has been operating in Mexico for many years and as a result, they provide on-the-ground support In Mexico. They have the existing business relationships to arrange meetings with Mexican companies, obtain qualified requests for quotes, support the product sampling phase, and develop new Mexican suppliers for U.S. manufacturers and distributors.

      BOI-EV-Charging-Stations

      East West Associates supply chain and manufacturing projects in Mexico include:

        • Supplier identification and qualification of Mexican suppliers, and generation of RFQs to selected suppliers. Industries include automotive parts, automotive aftermarket products, aluminum extrusion, specialty stainless steel, lead-free brass plumbing fixtures, machines castings, injection molded plastics, steel stampings and medical products.
        • Supplier audits of Mexican vendors
        • Background Checks of Mexican suppliers
        • Cost & Feasibility Analyses of establishing operations in Mexico vs. the U.S.

      We are very active in this diversification trend, and have conducted numerous webinars on developing successful Mexican suppliers and manufacturers.

      For assistance with determining if Mexico is right for your company or if you have additional questions, please call or contact us at 704.807.9531 or abryant@eastwestassoc.com.

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      Establishing Manufacturing & Sourcing in Thailand

      Webinar:

      Establishing Manufacturing & Sourcing in Thailand

      Establishing Manufacturing & Sourcing in Thailand

      About The Webinar

      East West Associates Roundtable with Senior Executives


      Who Should Watch?

      Executives of US companies who are facing manufacturing, contract manufacturing or sourcing challenges in China or other countries.

      Why Should You Watch?
      For ideas and guidance to help navigate new business manufacturing and supply chain in Thailand.


      US companies are establishing or relocating to Thailand for a number of reasons, not the least is diversification from China. Thailand has become a preferred destination as China labor costs and geopolitical concerns increase, and as US/China tariffs remain.

      Thailand has a significant manufacturing base and available skilled labor. For example, in 2021 Thailand became the largest motor vehicle-producing country in Asia Pacific, producing 1.9M vehicles.

       

      East West Associates’ speakers will answer questions, including:

      1. Why – and How – are US companies developing manufacturing, contract manufacturing & sourcing capabilities in Thailand?
      2. What industry sectors are finding manufacturing & sourcing success in Thailand?
      3. What financial & operational incentives does the Thai government provide to US companies to establish operations on leased or owned facilities?
      4. How should our investment strategy be designed to best meet the Thailand Board of Investment goals?
      5. How does Thailand labor compare to China & Vietnam? Lease rates? Building costs? What are the relative advantages of Thai Business Park options?
      6. Can you summarize the Thai/US trade relations and tariff policies?

      Our speakers briefly present two recent case studies:

        • How an Ohio-based industrial company successfully established a Thai contract manufacturer relationship
        • Key experiences of a Michigan-based electronics manufacturer when relocating its China-based manufacturing to Thailand
      Establishing Manufacturing & Sourcing in Thailand

      Speakers

      Mark Plum | Director, East West Associates
      • Former President of Briggs & Stratton Asia (NYSE: BGG)
      • VP Sales & Marketing, American Standard Thailand & American Standard China
      Steve Blyth | Nederman Corporation (Thailand)
      • Former Managing Director of Southeast Asia, Nederman Corporation (Thailand)
      • Former Sales & Commercial Director, Volvo Cars (Thailand) Ltd.

      • Currently based in Bangkok, Thailand

      Establishing Manufacturing & Sourcing in Thailand

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      2023 Headwinds to Manufacturing In-China/For-China

      Webinar:

      2023 Headwinds to Manufacturing In-China/For-China

      Headwinds to Manufacturing In-China/For-China

      About The Webinar

      East West Associates Roundtable with Senior Executives


      Who Should Watch?
      Executives whose US-owned companies are committed to manufacturing in China and selling into in-China markets.

      Why Should They Watch?
      For ideas and guidance to help navigate new business restrictions and other headwinds to your In-China/For China manufacturing operations.


      The Past: How Things Were, in China/for China

      For decades, manufacturing in China for the China market was a happy time. US multinational companies (MNC) took their tried-and-true designs there to address a huge untapped China demand. There were relatively few local competitors. The cost of labor in China was a fraction of anywhere else. The Chinese government provided a friendly regulatory environment and offered attractive incentives.

      Then tailwinds became headwinds.

      Today: Where We Are Now, in China/for China

      Chinese competitors have emerged. US market share in China has eroded. Labor costs have ballooned. Nationalism is on the rise in both US and China. Political tensions and tariffs. New Business Park limitations. Buy-China attitudes, unpredictable laws and new environmental regs make it tougher and tougher for US-owned companies in China.

      But there you are, in China, for the China market. What do you do now?

      Our seasoned executives have real-life manufacturing experience in China and addressed four scenarios during the webinar.
      Are you experiencing one, some, or all of these scenarios?

      1. Manufacturing operations in China Business Parks are facing growing pressures, including limitations on expanding manufacturing capabilities, and increased environmental restrictions.
      2. The Chinese government is imposing an array of“no-fly list” restrictions on imports of sensitive products or components or raw materials you need to manufacture in China.
      3. Implications of “Made in China 2025” indicate you might need to stay below the radar to survive there.
      4. You might be concerned that your operations in China could be under-performing.

      Our speakers also answered audience questions, such as:

        • Are there industrial parks or developing regions within China where we might find lower manufacturing costs and/or growing market potential?
        • What opportunities are emerging in the western regions of China? Is it easier to do business there?
        • China has recently spoken about welcoming foreign investment again. What can we realistically expect?
        • Should we re-evaluate our ownership model and move to a minority position (< 50%) to address Chinese concerns? How do we deal with cash flow, profit repatriation, corruption, IP/TS concerns?
        • Should we consider a move to a SE Asia regional headquarters? Like in Singapore or Hong Kong or even South Korea?
        • How do we deal with declining operational performance? How can we monitor & motivate & compensate ex-pats and local staff, given new circumstances in China for US citizens and US-owned operations?
        • Can you share a real-life example of how a certain In-China, For-China company is re-shaping its operations to reflect a changing China?
      Headwinds to Manufacturing In-China/For-China

      Speakers

      Mark Plum | Director, East West Associates
      • Former President of Briggs & Stratton Asia (NYSE: BGG)
      • VP Sales & Marketing, American Standard Thailand & American Standard China
      Dan McLeod | Director, East West Associates
      • Former Director Asia Pacific Operations- Ashland Specialty Ingredients
      • General Manager-Eaton Corporation (SE Asia)
      • Director of Asia Pacific Manufacturing and Supply Chain-Hercules
      Headwinds to Manufacturing In-China/For-China

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      Headwinds to Manufacturing In-China/For-China

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