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It’s Only Common Sense: It’s Time to Globalize!

The world is getting flatter every year, month, week, day, and hour as we get closer to one another and seek ways to do business. This, from some of the world’s leading economists: no matter what politicians try to do, at best, they can only re-channel global commerce; and commerce, just like water, will eventually find the path of least resistance. That’s why I have come to the shocking (to some people) conclusion that there has never been a better time to go global when it comes to just about everything and anything, especially your electronics business.

The finger-in-the-dike tariffs for Chinese products has only served to increase the interest in alternative PCB-producing countries—namely Vietnam, India, Thailand, and of course, the granddaddy of them all, Taiwan. If you check out the top-50 contract manufacturers in the world, for example, you will quickly discover that Taiwan—not China—is the world leader in contract manufacturing with Foxconn leading the way at $126 billion in sales; that’s billions as in $56 billion more at one Taiwanese company than the entire global bare board marketplace. And Foxconn is just the first of the top-five EMS companies in the world with a combined total of $261 billion in sales—one-quarter of a trillion dollars, all of them Taiwanese. You have to go all the way down to number 10 on the list—BYD Electronic—to find your first Chinese EMS provider at a mere $6 billion.

Now, we all know that China has more dominance in bare boards than other countries. But if you dig a little deeper, you’ll find that many of those Chinese companies are actually Taiwanese-owned. Interesting stuff.

So, what does this mean to us in electronics? We should be out there right now, foraging our way into other countries and developing partnerships with companies in those countries as quickly and efficiently as possible.

Vietnam is in a great place, both geographically and economically, right now. There are a number of up-and-coming companies—bare board and also assembly—that are primed and ready to welcome your business. The technology is good, the prices are competitive, and the value is high. Right now, Americans are landing in Ho Chi Minh City (Saigon ) with orders in hand! I urge you to book your flight today, as Vietnam is about to become a very feasible option to China. Singapore, Thailand, and India are all in the mix as well. And don’t forget Mexico where planes loaded with Chinese products are arriving for eventual tariff-free entry into the U.S. It’s a great alternative for you to consider.

Taiwan has been our steady electronics supplier for decades. People are already reaching out to this island of technology and establishing—or in some cases, re-establishing—relationships with high-tech Taiwanese companies. Taiwanese companies are easy to deal with, very technical, U.S.-friendly, and can provide you with any and all technologies you require.

A smart man once said that a true entrepreneur is one who plays the cards they have been dealt to their fullest advantage, and that is exactly where we are today. These alternative supply chain channels are going to expand and thrive in this new world order, and in the end, will be a good thing for the entire world. Never forget that the U.S. was founded on competition, and the purer the competition is, the better the market works.

Now, it is up to you. Those of you who are really into global sourcing to satisfy both your needs and your customers’ needs must take full advantage of this situation. You need to get bold and creative and seek out new channels that this dam has caused. Personally, I am very excited about what all of this is going to lead to. I am already working with companies in Taiwan, Vietnam, and India, and I look forward to further expanding my horizons in the near future. Will you join me?

It’s only common sense.

Dan Beaulieu is president of D.B. Management Group.