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U.S. manufacturers reevaluating relationship with China says survey

Aug. 19, 2020
Business plans are being rewritten and many are planning to leave China in the wake of coronavirus

In June, after a large number of companies in China had resumed operations, East West Associates conducted a survey of more than 150 Western companies with operations in China to see if their strategies for manufacturing, contract manufacturing and sourcing there had changed.

"Our objective was to acquire first-hand, working knowledge of the comprehensive impact of the coronavirus on companies with operations in China - the challenges they are facing, the actions they have taken and how they are planning for the future," said Alex Bryant, president of East West Associates. His firm is a consultancy that helps manufacturers locate or find resources in other geographic markets.

The topline points of East West Associates' survey:

  • 95% of the companies have been confronted with an unprecedented changed economic environment, due to the disruption of both the domestic and global markets.
  • 91% indicated they were facing multiple challenges simultaneously, in particular decreases in demand and disruptions of operations.
  • 92% said they have taken action to restore stability and recover.
  • 77% indicated that they have taken multiple domestic and global actions simultaneously.

To learn more, read "How U.S. Manufacturing Companies Are Reassessing China" from Food Processing.

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