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Avoid New Tariffs: A Smarter Way to Leverage Mexico
This edition includes a guide to leveraging Mexico for production to avoid new tariffs, insights into declining freight rates and their impact, and an inspiring look at how Shinola is revitalizing Detroit through craftsmanship and innovation.
Sourcify
January 21, 2025
Avoid New Tariffs: A Smarter Way to Leverage Mexico
Facing increased tariffs on finished textile and apparel imports in Mexico? The recent changes to the IMMEX program make it more expensive to import goods from a third country and export them to the U.S. But there’s a workaround: move your manufacturing to Mexico. By producing your goods locally, you can bypass these tariffs, reduce shipping times, and stay competitive.
Why Shift Your Manufacturing to Mexico?
Tariff-Free Benefits: Produce locally and avoid the new 15-35% tariffs.
Proximity to the U.S.: Enjoy faster shipping and reduced lead times.
Skilled Workforce: Access a growing manufacturing sector with specialized expertise.
Cost Savings: Take advantage of Mexico’s competitive labor costs and trade agreements.
Sourcify can help you transition your manufacturing operations to Mexico, ensuring compliance and unlocking cost efficiencies.
International Container Shipping Rates
Global freight rates continue to decline, with the Drewry WCI composite index dropping 3% to $3,855 per 40ft container, significantly below pandemic peaks but still above pre-pandemic levels, as rates from major routes like Shanghai to Los Angeles and New York decrease, while some routes like Rotterdam to New York see slight increases.
Like What You See?
Ecommerce on Tap
In our latest podcast episode, hosts Aaron Alpeter and Nathan Resnick dive deep into the fascinating story of Shinola, a truly iconic American brand that has expertly woven together history, craftsmanship, and social impact.
What's Inside This Episode:
🔍 An Intriguing Turning Point: Learn how Tom Kartsotis, the founder of Fossil Group, revived the defunct shoe polish brand Shinola in 2011, transforming it into a symbol of American manufacturing and craftsmanship, all based out of Detroit.
🚀 From Shoe Polish to Luxury Goods: Discover how Shinola, originally an American shoe polish brand founded in 1877, ventured into making high-quality watches, leather goods, bicycles, and even operates a hotel!
🏭 Built in Detroit: Understand the motivation behind building a large-scale manufacturing operation in Detroit, a city grappling with economic distress. This episode sheds light on Shinola's commitment to creating job opportunities and training a skilled workforce in the heart of American industry.
📦 The Complexities of Watch Manufacturing: Ever wonder how intricate it is to manufacture a watch? Nathan shares insights from his extensive experience visiting watch factories in China, highlighting the challenges and complexities Shinola faced when setting up manufacturing in the U.S.
📊 Financial Growth and Challenges: Get a peek into Shinola's financial trajectory. Despite the ups and downs, Shinola has seen remarkable revenue growth, though profitability remains a challenging factor.
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