China for long has been the manufacturing hub for major industries and the scene was no different for the production of truck components. However, the scenario has undergone a drastic change in the last three years as was observed by the suppliers of Truck components in a recent meeting organized in Texas.
Production of truck components in China was cost efficient business practice but this is not the case anymore as the cost of production has become very high in last three years.
Executives from various suppliers of truck components while expressing their views during the meeting in Texas stated that some of the suppliers had already started executing their plans to move back production to North America.
Phillips Connect Founder and CEO, and CEO of Phillips Industries, Rob Phillips along with the President and CEO of Velvac Jeffery Porter, and President of Americas for SAF- Holland Kent Jones were the key speakers at the meeting. They pointed towards the prevailing circumstances of commercial vehicle component business.
The executives further delved on the issue adding that supply chain was badly disrupted by COVID-19 pandemic which included inordinate delays and excessive tariff on products by China.
On the other hand, Mexico in addition to U.S. is being seen as the choice for the production of truck components. Various suitable factors being costs, availability of labour, proximity to customers and closer to the supply base.
