Smart Move, although i geniunely feel sorry for them if Tariff Man Trump raises the Tariffs to 25% later this year like he is threatening out of Mexico. Cant catch a darn break! 5% wont be much of a deal killer on items of this value provided they can manufacturer it for around the same costs as they can in China, which is doubtful.
Manufacturing in the USA could be the smartest move they could make. Bold. Obviously the costs would go up but if they could make them for cheaper than any other USA manufacturer, it could be a great oppurtunity for them. They could also possibly lobby Tariff Man to lift the ban on their USA manufactured goods. Dahua, the great Americans!
AS it shows in the article, parts are shipped into Mexico, this does not mean "Manufactured in Mexico" unless they can prove a higher percentage of manufacturing happened in Mexico than in China.
Assembly is assembly.
FTC requires that a product advertised as "Made in the USA" be entirely or virtually entirely made in the United States. Same goes for made in Mexico.
Being made in Mexico does not insure there are no security issues and in fact in assembly, anything can be added to a product. This has been happening for years and years. Can site several examples throughout last 20 years from cyber before it was called cyber to video.
You either care about made in China in regards to security products and concerns for US entities and people or you don"t care about security in the US. Then if that fits then your pocket book is more important. Yes tariffs can and do affect us all but sometimes we need to pay more to stop countries that treat us as 2nd class citizens, that don't negotiate fairly with the US. Other countries will take over the slack and then the economy settles down.
Also even if Dahua or Hikvision moved their manufacturing to the U.S., they can make sure they pay minimal taxes which gives them an advantage still over real made in USA companies. They can claim higher cost on parts, ect, higher cost of the product in China and then show less profits in U.S..... They can also play with their books on having consultant costs added to employee US costs to lower revenue to be taxed. This has been done for years too. Having worked for international companies in US with world HQ in other countries I have see all first hand and I have invested my time to fight this system.
Keep making your remarks about the President , you might be able to launch a new career as a comedian.
Honestly, I hope the presidents plan works. I hope we reach a trade deal with China. I see what he is trying to do. I hope I am wrong and I hope China finally gives in. That would be a huge win.
I occassionaly listen to conservative talk radio in which I agree with the majority of what is being said. I agree with the ideals of conservatism. I voted for and continue to support the President. But one thing that happens often on conservative talk shows and quite frankly alot of conservative/repulican followers, is that they tend to mindlessly 100% agree with everything that Trump does and 100% disagrees with everything that any democrat does. Also, anytime someone from "the right" criticizes Trump even professionally, insults ensue from Trump. I used to to think it was funny during the election process and even justifiable at times, but now its cringey. Also, it has caused a similar following of "mindless fans" that post things such as what the above 2 posters have posted. I refuse to fall into this method of thinking. I choose to use my brain.
With that being said, my obersevation of Trumps Tariff plan with China has been dilly dallying and hasnt been that much effective. Companies are still buying from China. Chinese parts are still for the most part, cheaper than most other countries even with the 25%. Sure, there have been some Chinese companies that have moved their factories outside of China to escape the Tariffs, but Im not really sure if you can consider this a win. And now consumers are starting to pay more for products but Trump is touting that China is paying for it.
Trump seems to be a good strategist though, his plan could work out in the long run. I hope it does.
Update: Historical Dahua customer IndigoVision is also moving to manufacturing of some cameras to Mexico but tells IPVM that Dahua is not (nor any NDAA banned companies) manufacturing them.
From Indigovision's financials:
The Company completed the majority of the planned restructuring of its supply chain and recently launched its US National Defense Authorization Act 2019-compliant Ultra X camera series. This week saw the first production run of IndigoVision products from the Group’s primary camera supplier’s new facility in Mexico, which is intended to secure tariff-free access to the US market. [emphasis added]
Here is what 2 of those cameras look like:
Ethan looked at them (literally) and checked the datasheet but did not find any obvious mitch to any Hikua camera.
If anyone has any information on who is making IV's cameras in Mexico, would be interested to hear.
Dahua continues to steadily ship to Flextronics over the last few months:
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Comments (17)
Sean Nelson
06/07/19 01:32pm
Smart Move, although i geniunely feel sorry for them if Tariff Man Trump raises the Tariffs to 25% later this year like he is threatening out of Mexico. Cant catch a darn break! 5% wont be much of a deal killer on items of this value provided they can manufacturer it for around the same costs as they can in China, which is doubtful.
Manufacturing in the USA could be the smartest move they could make. Bold. Obviously the costs would go up but if they could make them for cheaper than any other USA manufacturer, it could be a great oppurtunity for them. They could also possibly lobby Tariff Man to lift the ban on their USA manufactured goods. Dahua, the great Americans!
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Rich Moore
Would they rename their company El Dahuaito?
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Undisclosed #1
there’s only one way to get rid of that kind of tonnage:
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Howard Kohnstamm
I wonder if they will get hit with a 30% tariff? 25% because the original parts came from China and another 5% because they'll be coming from Mexico.
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Scott Smith
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david d
Flextronics has facilities in the USA also, FYI...
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John Honovich
Update: In the past month, in addition to the ~300,000 pounds sent to Flextronics Juarez, Dahua has sent 6 shipments for a total of 100,000 pounds to their Houston facility.
This is a new trend. Prior to the past month, shipping records show only 1 other shipment to the Houston facility, back in May 2018.
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John Honovich
Update: Historical Dahua customer IndigoVision is also moving to manufacturing of some cameras to Mexico but tells IPVM that Dahua is not (nor any NDAA banned companies) manufacturing them.
From Indigovision's financials:
Here is what 2 of those cameras look like:
Ethan looked at them (literally) and checked the datasheet but did not find any obvious mitch to any Hikua camera.
If anyone has any information on who is making IV's cameras in Mexico, would be interested to hear.
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John Honovich
Update, 3 new Dahua shipments to Juarez in July, totaling ~80,000 pounds:
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John Honovich
Dahua continues to steadily ship to Flextronics over the last few months:
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