Season Group Already Seeing Effect of US Tariff Changes

Reading time ( words)

Season Group is already seeing a significant surge in enquiries as a result of the changes in US Tariffs with China.

“When the initial tariff changes were announced in July, we saw very little change in customer behavior. The feedback that we were getting was that customers expected this to be a short-term situation. However, now that some US companies have seen large-scale invoices for their imports from China from the first round of tariffs, the increase in their scope means that there appears to be an urgency to find alternative sources to avoid these significant cost increases. Given that Season is one of very few EMS companies of its size that has an EMS footprint in Malaysia, Mexico, USA, UK as well as China, we are being seen as a 'safe haven' for many small and medium-sized companies that are currently sourcing with companies that have only one site in China. We are getting feedback that the number of options is also important as there is a fear of 'where next' given previous concern over US duties related to Mexico (for The Wall) and current NAFTA negotiations with Canada,” said Carl Hung, president and CEO of Season Group.

“We have never had a Sales Funnel of the size that it is now. It stands at the equivalent of our annual revenue – with a number of large opportunities due to be added very soon. What I find particularly interesting is that even European companies that source in China are looking at their EMS strategy – concerned that the single-site China EMS companies, with whom they are currently working, could be adversely affected if their US revenues collapse. In addition, the fact that we also have a China operation appears attractive to customers as it can help organize the initial transfer as well as providing an option if the tariffs are ever reversed,” added Charles Tonna, VP Business Operations and Strategy.

05/08/2023 | Andy Shaughnessy, Design007 Magazine

American Standard Circuits provides more services than strictly bare board fabrication. During a recent visit to the ASC facility in West Chicago, Illinois, Nolan Johnson spoke with Bob Duke, president of ASC’s Global Sourcing division, about the dynamics of helping a customer source custom commodity subassemblies.

04/12/2023 | Barry Matties, I-Connect007

At Tuesday’s SMTA Boise Expo, Barry Matties visited with SMTA Boise Chapter President Tony Whitt, who talked about the genesis of this regional show, and what he’s learned about selling in today’s digital world. Two big companies in the Boise area support the region’s electronics manufacturing industry, and these companies are having the same struggle as so many others—where are the people who actually want to work?

03/21/2023 | Mark Wolfe, IPC

The role of electronic manufacturing services (EMS) companies is very often misunderstood. Some perspectives, however, are helpful to frame the question of what is on their minds, especially in the current global environment. EMS companies build products but they are not really “product” companies. While they may provide design services, the designs are still owned by their customers. As a result, they do not have the right to select or change components. In most cases, the EMS company will still be responsible for purchasing these components which are typically 70–90% of their cost to produce the end products. They also do not determine what volumes should be built.