Articles by Month: August 2019
However one feels about the politics of it, the ongoing trade war between the U.S. and China has invariably imposed significant burdens on stateside supply chains. Cleveland third-party logistics firms do our best to help insulate our clients from the economic impact – which for now shows little sign of abating – or at least find ways to help offset the costs.
The trade war began nearly one year ago with President Donald Trump imposing tariffs on $250 billion Chinese exports. Administration officials cited China’s alleged theft of U.S. intellectual property (mostly in the tech sector), as the primary catalyst, but also noted a desire to incentivize American companies to bring manufacturing jobs back to the U.S.
The Chinese government retaliated by increasing taxes on American exports and decreasing taxes on most every other country.
This escalation has dragged on for months, with a 15 percent tariff on another $112 billion worth of Chinese goods going into effect early next month, bringing two-thirds of goods imported by the U.S. from China under additional taxation. Another 15 percent tariff on $160 billion in goods is slated to go into effect in December. If that happens, almost all Chinese imports will be under tariff.
Sharply divided are conclusions about whether this will be effective in bringing back U.S. manufacturing jobs or curbing intellectual property theft. What we do know for certain is that companies in Ohio can’t bank on this simply blowing over. The stakes are too high. They must prepare.
Dialing in business growth solutions in Northeast Ohio rarely involves a single factor, but the strength of a company’s Cleveland supply chain strategies can’t be overlooked.
Simply put, the supply chain is the flow of goods and services both within and among companies, domestically and internationally. It usually begins with raw materials and manufacturing, then onto production, processing and packaging and then transport and distribution – though your firm may only deal directly with one or two aspects. What is often not so simple – especially when that chain crosses state and international borders – is the logistics.
Ensuring goods get from Point A to Point B intact and on time is the foundation of our entire business model. Logistics management is a $1 trillion dollar industry in the U.S. – and it’s still growing, thanks to e-commerce and advancing technology.
Ohio University analysis shows that in just in the last decade, supply chain management employment has spiked by more than 50 percent – and that’s because business leaders increasingly recognize the upper hand it affords. The Cleveland and Columbus regions are especially active hubs, thanks to their central physical location, population and industry density and access to various transportation modes.