What About Made InThe USA? but did not condemn Russia’s attack on Ukraine. China’s foreign minister, Wang Yi, said that the two countries would maintain strategic strength despite the Ukraine crisis and that the country’s relationship with Russia, with which it shares a border, is “rock solid.” Many industry leaders believe the war will only further complicate the current supply-chain issues. “There’s so much uncertainty,” Rong says. “We need to keep a close eye on what’s happening around the globe. That will help us determine if we should continue to purchase overseas or if it may be better to nearshore.” Walsh adds that Russia’s invasion of Ukraine is so unprecedented that it’s difficult to understand what the mid- and long-term effects will be. “Companies always have to be asking how could that and how will that impact us. Do scenario planning on a week-to-week andmonth-to-month basis,” he says. “Business has been going well in the promotional products industry and for my company for several months. But we’re groomed to not take it for granted. Always stay mindful of storms on the horizon.” Staying Flexible And Diversifying China may be the world’s manufacturing superpower, but the country could be losing its allure. Most advanced economies such as the United States, the United Kingdom and Australia view China unfavorably, according to a Pew Research Center survey. U.S. government representation was absent from the stands at the Winter Olympics in Beijing. Confidence levels in Chinese President Xi Jinping have plummeted to the lowest point in his tenure. China has an increasingly troublesome image problem, and many promotional products companies are wary of continuing to rely too heavily on the country. Instead, they are proactively planning and exploring other options. “China is the world’s factory, but it may not be the best bet going forward,” Skyou’s Mulligan says. “Companies that are relying on products primarily coming from China should diversify their supply chain. Many larger, consumer-facing brands are being specific about making sure their products are not coming from China.” At Showdown, Walsh says he will continue to work closely with his suppliers in Asia. He encourages companies to nurture their business partners and continue to build upon those relationships. “But in the meantime, make sure you put a Plan B, Plan C and Plan D into place,” he says. “You just don’t know what’s on the horizon.” Sellers is a Dallas-Fort Worth based writer and former associate editor at PPAI. Spencer Loveless, CEO of additive manufacturing companies Dustless Technologies and Merit3D, is an advocate for keeping production stateside. Q: Cost is obviously what drives businesses to offshore manufacturers, including China. What’s the counterargument to that for products made in America? A: Speed to get your product. Also, many times you get net 30 terms, so as a manufacturer you get four to five more months on your money. Q: How do consumers react when they know a product is made in the U.S. rather than overseas? Do we know that they place more value in it, or assume it’s a higher quality? A: People frown on products made in China vs. the USA, but in today’s market it is more important to get the best product. Reviews on Amazon are what drive most people to buy a product. Q: What has been the result of your commitment to manufacturing in the U.S. rather than China? A: The result of our commitment is, since we are not trying to beat China at their game, we think we can win. If we did the same things they are doing, like injection molding, then it would be much harder for us. Since we are doing mass additive manufacturing, which brings our suppliers many benefits over injection molding, they are willing to move and change their process for manufacturing. China | FEATURE | MAY 2022 | 67
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