CHINA PLUS ONE
While China and Chinese manufacturing will remain crucial in the global economy and supply chain, it is essential to build global sourcing strategies going forward. Henceforth, Mascon has developed a “China Plus One” strategic initiative.
The goals of “China Plus One” are multiple:
- Reduce reliance on a single nation or source for production
- Diminish risk of interruptions due to natural or political events
- Distribute load
- Create new partnerships
- Engage new workforces
- Remain dual-sourced as the global economy and demand evolves
As other manufacturing centers mature, this strategy becomes more feasible and more attractive. Thus, strengthening supply and distribution chains, risk diversification for upstream and downstream vendors, expanding workforce talent, increasing reliability, and improving political stability all create geographically diverse opportunities.
Furthermore, Mascon has identified six countries that are strong candidates for a “China Plus One” outreach. We have already begun partnerships and production in several, and are exploring possibilities in all of them including India, Thailand, Indonesia, Malaysia, Mexico, and Vietnam.
While each sourcing opportunity is unique, we always make our assessments based on the strength of the partnership and terms of the agreement, as well as four elements that involve political, cultural, economic, and logistical analysis. In simplified categories, they are:
Strengths, Weaknesses, Opportunities, and Threats
Our commitment and work in China and Taiwan remain strong and ongoing. What follows is an overview of where additional focus and growth might occur as the global economy advances.