4 Things You May Not Know About Navigating the China Tariffs

Navigating the challenges posed by U.S. tariffs levied on Chinese goods can be daunting. With the right partner, companies can make the most of the current trade climate, and in some cases, use it to their competitive advantage.

With nearly 50 years of experience in international production and supply chain management, Pivot International is uniquely positioned to offer powerful solutions to problems posed by geopolitical events, climatic disruption, or currency fluctuations. As a single-source design, development, and manufacturing firm, Pivot has the resources to help.

Here are 4 things your company should consider in relation to the current U.S.-Chinese trade tensions.

1. The Philippines is a highly reliable and attractive alternative to China-based manufacturing.

Home to some of the most advanced and innovative manufacturing technology, such as mirrored SMT systems (like those in the Pivot owned Manila facilities), the Philippines is a valid alternative to China. With one of the fastest-growing economies in Asia, a quarter of the Philippines’ GDP derives from manufacturing. The country is also in the process of renovating its infrastructure with President Rodrigo Duterte’s “Build, Build, Build” plan. The Philippines also boasts a highly educated and skilled workforce.

2. Diversifying your supply chain is always the right choice.

Regardless of the trade climate, companies that strategically maneuver within the global marketplace can protect themselves against disruption to their supply chains. A diversified supply chain, moreover, can minimize the effects of natural disasters, geopolitical turmoil, and any form of potential economic disturbance.

In the words of Syracuse University economist Mary Lovely, “Businesses aren’t seeing the trade conflict calm down. They’re actually probably seeing it escalate. So this may be the time that firms actually say, hey, this is going to be around for quite a while, and maybe it’s the time for us to start making the investments that we need.” This is the time for seizing business opportunities that may have otherwise been overlooked or postponed.

3. Domestic manufacturers have their advantages.

In addition to seeking suppliers outside of China, turning to domestic manufacturers is also a practical choice. American production facilities are known for offering greater IP security, flexible payment options, and reduced shipping costs. U.S. manufacturers also tend to have high labor standards, which help contribute to the positive image that is already associated with domestic companies.

4. Bigger is not always better.

Smaller manufacturers can avoid the regulatory costs that often hit their larger counterparts and are often highly service-centric. They also tend to be agile, which should be a core competency of any manufacturing partner your company might consider.

U.S. consumer-goods companies that are currently trying to move away from China-based manufacturing facilities have options. In fact, some of the challenges resulting from China tariffs can translate to competitive advantages for American businesses. Ultimately, by staying informed and flexible, your company can successfully weather the current trade climate.

At Pivot International, we offer end-to-end supply chain solutions and viable alternatives to China-based manufacturing. If your company is currently confronting production liabilities, we can help. Contact us today.

How to Prepare for Disruption – So You’re Not Destroyed By It

While disruption is gaining speed and becoming more frequent, the phenomenon is hardly new. Think about the manufacturing advancements we’ve made throughout the last 200 years—each one disrupted the industry to some degree.

No doubt, disruption will continue to shape product development and manufacturing.

And that’s a good thing. Disruption leads to lasting advancement and remarkable improvements.

However, you want your business to be an active participant in the process, not sidelined by the next big thing—and that means being aware of what’s coming and staying ahead of the game. Follow these pointers to help your company recognize when disruption is on its way.

1. Pay attention to what’s attracting investors

Researching where venture capitalists are investing their money can give you a reliable indicator of where the next wave of disruption will come from. A promising disruptive product that, as venture investor Kjartan Rist puts it, “drives efficiency and opens new market opportunities, while challenging incumbent players” is the “ideal fit for risk-taking entrepreneurs.” Stephen McBride notes that “today’s truly disruptive companies are building their fortunes faster than ever before. That means their investors are getting rich faster than ever.”

Following the venture money can be a great way to stay abreast of what’s promising in your industry.

2. Talk to your customers

Along with advances in tech, it’s the needs of customers that really catalyze disruption. Businesses that can identify customers’ pain points and turn them into innovative solutions earn popularity and loyalty among consumers. While sales data provides useful information, face-to-face interaction with customers can yield invaluable insight regarding your company’s products. Don’t shy away from directly asking how you can improve your product. Seeking out your customers’ opinions is one of the best ways to stay ahead of disruption.

3. Take heed of trade associations

Heidi Pozzo of IndustryWeek notes that “trade associations are on the front line of disruption.” From consulting with environmental agencies, following new legislation, and tracking regulations, trade associations are involved with disruption’s many angles. Consider how important sustainability is to today’s product developers. This trend owes a great deal to trade associations. By following trade associations, you are following disruption.

4. Examine where the workforce is going

Pozzo explains:

“New companies spring up looking to develop a new product and deliver it to the market in a different way. Usually they are formed by people from outside the industry. But they need talent from people who know the industry inside and out; people who realize the customer is not satisfied. Or the costs are too high to be competitive long-term. These people see the vision of the disruptors and jump ship from their current positions to help deliver the vision.”

When employees start moving over to startups, that’s when you know it’s time to pay attention.

Detecting disruption should be an integrated component of your business. As Pozzo asserts, “it’s not the disruption that will kill your business. It is not paying attention and reacting that does.”

At Pivot, we bring nearly 50 years of experience in offering product design and complete prototyping services to entrepreneurial start-ups and established corporations alike to help them bring profitable products to domestic and international markets. If you’re ready to take the steps to prototype a product or are simply looking to optimize your manufacturing operations, we can help. Contact us today and see what we can do for you.

How to Best Navigate the China Tariffs as a Product Developer

As the U.S.-China trade war continues, many in the product development world are wondering how to best proceed. Should product developers start looking elsewhere for manufacturing? Should they plan for higher supply costs? How might this affect their product’s overall chances of success?

While there are still many unknowns as to how the tariffs will ultimately affect global product development, there are certain steps companies can take to minimize any negative effects.

Start with the big picture

Before committing to any drastic changes, companies should examine data regarding their business’s use of imports. This information is free to access from the Automated Commercial Environment system (ACE). By analyzing the import data, your company can better understand how the tariffs will specifically affect you.

Next, we recommend companies look into the Harmonized Tariff Schedule (HTS). The HTS categorizes all U.S. imports through a code system. Every product and import has a code that confirms the merchandise’s country of origin. This is important because items that are shipped from China do not necessarily originate from there.

Find supply chains and manufacturers outside the country

Finding diverse suppliers and manufacturers outside of China is a good idea regardless of the trade climate. Companies that can strategically maneuver within the global marketplace can minimize the effects of natural disasters, geopolitical turmoil, and economic upheaval to their supply chains.

Syracuse University economist Mary Lovely told NPR, “Businesses aren’t seeing the trade conflict calm down. They’re actually probably seeing it escalate. So this may be the time that firms actually say, hey, this is going to be around for quite a while, and maybe it’s the time for us to start making the investments that we need.”

Last month, the CEO of Brooks Running announced they are responding to the tariffs by moving production out of China and into Vietnam. India too has a “large, untapped population that would like to be more deeply embedded into global value chains—they will be able to come online and gradually get the capacity to replicate what China had done.”

Turn to smaller domestic manufacturers

Domestic manufacturers also have their advantages. Greater IP security, flexible payment options, and reduced shipping costs are just a few. U.S. manufacturers also tend to have high labor standards, which help contribute to the positive image that is already associated with domestic companies.

There are also many benefits to working with a manufacturer that’s on the smaller side. Smaller manufacturers can avoid the regulatory costs that often hit large manufacturers. The current trade climate is rendering agility vitally important, and small manufacturers are much better prepared to make the necessary, quick changes.

U.S. consumer-goods companies that are currently trying to move away from China-based manufacturing facilities have options. After all, some of the challenges resulting from China tariffs can translate to competitive advantages for American businesses.

At Pivot International, we’re helping U.S. companies successfully navigate the current trade climate. As a single-source designing, engineering, and manufacturing company with facilities in Taiwan, Manila, the UK, and the United States, we bring nearly 50 years of experience with Asian manufacturing and expertise to optimize production for your business. If your company is currently confronting production liabilities and is seeking a viable alternative to your current supplier, contact us today.

Top 3 Industrial Touchscreens

Touchscreens are everywhere. Commercial touchscreens are key components of mobile devices, tablets, ATMs, POS systems, and more, and industrial touchscreens are becoming as ubiquitious as their commercial counterparts.Though touchscreens are often referred to as a single kind of product, there are two distinctly different types: resistive and capacitive.

Resistive and Capacitive Touchscreens

There are two main types of touchscreens: resistive and capacitive.

Resistive touchscreens are activated by direct pressure (from a stylus, hand, etc.) Because they are affordable, durable, and reliable, resistive touchscreens are the most common form of touchscreens in an industrial setting.

Known for their high-quality imaging and instant response time, capacitive touchscreens are the most common form of touchscreens for consumer devices. Rather than relying on physical pressure as the resistive touchscreen does, capacitive touchscreens are activated by the human body’s electrical conductivity.

Both resistive and capacitive touchscreens are continually evolving as companies compete to produce the latest and greatest product versions for commercial and industrial markets alike. For the industrial market, the following 3 touchscreen monitors represent the leaders of the pack.

Best Overall: Acer T232HL Abmjjz

The Acer monitor is thin and can be easily operated with a single hand. The size is highly functional, as is the weight, offering both depths of vision and portability. The Acer is a high definition display, with a 1920 x 1080 resolution. The distance between each pixel is 0.2595 millimeters, resulting in clear, sharp visuals. All of the Acer’s setting buttons are located on the side for easy, one-handed access. Touchscreens with less thoughtfully placed controls lend themselves to being inadvertently triggered, resulting in disruptions to service and workflow. The response time for this touchscreen is a mere five milliseconds: an impressive feat. Its highly accessible ports make the Acer incredible easy to connect.

Best Cost: Planar Helium PCT2235

Costing around $310, The Planar Helium PCT2485 touchscreen monitor can be tapped in 20 places simultaneously and receive a response for each touch. This touchscreen also can recline to 15 degrees or lie flat for table use. The Planar Helium has a tilt range of roughly 55 degrees. This model is heavier than the Acer. The Planar also includes a webcam, which distinguishes it from other models. The response time is 14 milliseconds. In terms of connectivity, the Planar Helium has a DisplayPort and an HMDI connection. The Planar has been praised for its customer support resources, which includes a live chat option.

Best Matte: Dell P2418HT

The Dell P2418HT resembles a traditional monitor: it has an upright stand. The matte touchscreen effectively reduces glare and has an impressive default color accuracy. Like the Acer, the Dell is HD with a resolution of 1920 x 1080. The Dell’s response time is definitely on the fast side at six milliseconds. The Dell P2418HT comes with an HDMI and DisplayPort. The three USB 3.0 ports can download files at high speed.

At Pivot, we’re the driving force behind some of the most innovative industrial touchscreen technology that’s been brought to market. If you’re looking to bring an industrial product or medical device to market or simply to enhance your manufacturing operations, we can help. At Pivot, we have a track record of over forty years of expert experience in partnering with businesses to help them successfully launch new products, and with manufacturers to achieve state-of-the-art operations. Contact us today and see what we can do for you.

Quality Assurance and Quality Control: Why Both Matter

Quality assurance and quality control are distinct processes within manufacturing management. QA working in tandem with QC contributes to an organization’s excellence and also results in better products. By understanding the differences between QA and QC, as well as their partnership, you will be well equipped in choosing the right manufacturer for your product.

What is Quality Assurance?

Quality assurance revolves around the process of manufacturing. QA is proactive: it deals with all activity associated with building a product. The role of quality assurance is to ensure that the production protocol is going according to plan. Quality assurance is a safeguard against production error and thus occurs before any quality control takes place. QA can be overseen by a company manager, client, or third-party representative. Project audits and methodology/standards development are forms of quality assurance.

What is Quality Control?

While quality assurance emphasizes the manufacturing process, quality control focuses on the product. Quality assurance is proactive, while quality control is reactive, identifying errors and figuring out how to best remedy them before the product goes to market. Quality control can involve inspection, testing, reviewing, and analysis. Ultimately, the quality control specifics are determined by the product’s unique features and functions. For instance, quality control for an automobile differs from quality control for a cosmetic product. QC is usually performed by a quality control inspector or a designated team.

Quality Assurance and Quality Control: In Collaboration

Having quality assurance in place helps companies maintain high standards of manufacturing. Quality control ensures that the final product reflects these high standards and satisfies the customer’s needs. Incorporating both quality assurance and quality control into production helps companies save time, money, and resources. Evaluating the caliber of an operation as well as the resulting products is a constantly informative undertaking. By thoroughly monitoring how a product is made and the ensuing result, companies can better understand where they should be allocating their attention and resources to. Manufacturers with a solid track record of delivering both quality assurance and quality control have faster turnaround times, durable production procedure, and loyal customers. Quality assurance and quality control are paramount to an organization’s long-term success.

Your long-established expert

At Pivot International, we take quality assurance and quality control seriously. As a long-standing expert in both QA and QC processes, we have a proven 40-year track record of helping companies design, develop, manufacture, and launch their unique products in domestic and international markets. We’re here to help you obtain and sustain excellent manufacturing and valuable products. Contact us today to get started. We look forward to hearing from you.

Internal vs. External Project Management: The Case for Cost-Savings

Companies have a lot riding on their most important projects and choosing the right people to manage them is a decision that deserves careful consideration. While there are often compelling reasons to opt for internal project management, many businesses lack the in-house resources for successful execution. Even for well-resourced businesses with experienced project management teams, the liabilities of internal execution can outweigh the benefits of working with an external team of experts who have built their reputation on managing projects to profitable completion.

By choosing the right people outside their organization to manage their most important projects, a business can have the best of both worlds. External project management benefits business in the following ways:

Greater objectivity means better decision making.

Though internal project managers may have ample experience with the nature and scope of the goals the project is intended to meet, they are frequently too close to the project or blindly embedded in unquestioned assumptions to make objective decisions about how to best manage it.

This lack of objectivity results in blind spots and brings unnecessary levels of complexity to projects that those external to the organization are far more likely to identify and to strategically simplify. External project managers also tend to make better decisions since their focus is solely on the project at hand rather than on a multiplicity of (often competing) commitments that characterize in-house execution.

Political “neutrality” means greater agility.

External project managers are not subject to or entangled in a company’s internal politics and organizational dynamics. Because external project managers exist and operate completely independently of these variables, they don’t have to navigate the policy changes or interpersonal issues that tend to plague and prolong internal project execution.

Being politically “neutral” means that external project managers aren’t torn between competing loyalties: they’re not there to climb the organizational ladder or pull rank on any person or department but simply to get the job done as efficiently and effectively as possible. It also means that external project managers tend to be far more agile than those in-house since their organizational independence makes it easier for them to rapidly adapt to changing circumstances and needs.

Dedicated expertise often means a lower cost structure.

Although it might seem that internal project management would be a cost-saving solution, this is often not the case for the reasons already discussed. Internal project managers are often hindered by a lack of objectivity and by organizational politics that complicate and extend projects well beyond their expected deadlines and budgets. There are also longer-term costs associated with hiring and maintaining full-time, in-house project managers.

Depending on their pricing structure, level of service, business model and other factors, external project management is often a more cost-effective solution to successful project execution. Doing the legwork prior to a project’s inception to determine what makes the most sense for your company is well worth your time and can translate to significant cost savings.

When considering external project management, keep in mind that you’ll need to choose a vendor with a track record of absolute commitment and proven performance. Outsourcing your project means that those managing it aren’t internal stakeholders and for this reason, they aren’t impacted by the outcome of the project in the same way as those within the organization. Take the time to research potential outsourced experts to ensure they have a reputation for reliability, integrity, and the highest levels of customer satisfaction and loyalty.

Pivot International is a single-source product design, development, and manufacturing firm that has been earning businesses’ trust for over 46 years by helping them bring their most important projects to successful completion. If you’ve got an idea, product or project that could use specialized support, oversight or production, we’d love to collaborate with your business to make your vision a reality. Reach out to us today for a free, no-obligation consultation with one of our experts. We look forward to hearing from you.

Struggling with Electronic Component Shortages?

Electronic components, particularly capacitors and resistors, are becoming increasingly hard to come by, and demand only continues to rise in response to shrinking distribution channels.

In recent years, component manufacturers have been investing heavily in the fabrication of next-generation electronics rather than in devices that have been around for decades. But it is these legacy, low-cost devices that are now in highest demand and lowest supply, and suppliers are noting a spike in double ordering as customers scramble for parts in an effort to meet production schedules.

Customers can continue to expect extended lead times.

Investment firms Morgan Stanley and Stifel found that ongoing electronic component shortages won’t let up anytime soon.

“Lead times remain elevated across a number of components, including capacitors, resistors, memory and certain discretes, according to our analysis of distribution data,” Stifel reported recently. “We continue to see signs of double ordering as customers scramble for parts. The multi-layer ceramic capacitor (MLCC) shortage is the most severe, with many parts seeing order-rescheduling requests from customers waiting on MLCCs or other parts,”

Stifel’s poll also found that 49 percent of capacitors, 35 percent of resistors, and 9 percent of discretes fell into the “highly constrained” category. Forty-one percent of discrete suppliers are quoting lead-times of 15 to 18 weeks and 14 percent are quoting 26-week lead times or longer.

Industry insiders predict that as capacity begins to take hold in early 2019 that over-demand will decrease, though not enough to ease tension in distribution channels. Furthermore, no one is sure about when industry-wide capacity will actually resume due to testing and qualification times. Many factors will affect the extent of the shortage and how quickly additional capacity will be online, including growth demands and cost considerations.

Tariffs will also contribute to the challenges of achieving additional capacity. The Electronic Components Industry Association reports, “In today’s digital world, nearly every industry utilizes electronic components and the supply chain for such components is globally interconnected and complex. As a result, the imposition of tariffs on electronic components will have global consequences for businesses and consumers alike, adding friction and costs to the supply chain that can hinder economic growth for all involved.”

Buyer beware

Delayed production schedules are not the only concerns customers need to worry about. Though component shortages are liabilities for customers, they offer advantages to counterfeiters who seize the opportunity to inundate the market with fake, damaged, or re-labeled parts. Though independent and hybrid distributors have stepped up their anti-counterfeiting efforts, they often lack the capacity to reliably trace parts back to their origins, making it hard to guarantee quality.

Solutions are available

At Pivot, we’re the single-source leader for helping you find the quality-verified parts and replacements that can keep your company’s production on schedule. Not only can we help you overcome the current components shortage with our global supply chain and in-house engineering resources, but we can also help you grow your business with product design, development, and manufacturing solutions. Contact Pivot today and we’ll successfully see you through the shortage!