6 Alternatives to Importing from China

If you work in sourcing or product development, you’ve probably been asked about your China alternatives at some point. The truth is that the market for importing from China has changed a lot in recent years. That’s because, while it’s still an excellent option for many products, it’s no longer the only one. In fact, there are now so many viable alternatives to importing from China that it can be difficult to keep track of them all. There are lots of great reasons to go with Chinese suppliers in particular situations. But there are also many great reasons to choose a different country (or even another continent) instead. If you’re exploring new options beyond just importing from China, here are 6 Alternatives to Importing from China to consider:

India: An Excellent Place to Import from

India has been rising on the world stage for decades but has only recently started to get the attention it deserves. As a great place to import from, it offers benefits that China doesn’t, including a better educated workforce, a wider range of industries and a significantly lower cost of living. India’s manufacturing sector is about as large as China’s, but it’s far more diverse. You can find everything from textile factories for apparel to industrial robotics facilities for advanced tech products. The country’s greater focus on technology and growing middle class are driving demand for everything from smartphones to electric vehicles. This promises to continue to drive growth in the manufacturing sector.

Mexico: A Solid Alternative to China

When people think of manufacturing in North America, they often assume that the only option is to go to the US. While it’s true that the US offers some significant advantages over other countries, Mexico has its own advantages, as well. For example, its proximity to the US is important for many clients. This can make it easier to work with US-based logistics providers and to maintain quality control over your supply chain. Compared to China, Mexico also offers a lower minimum order quantity. If you’re working with smaller quantities or want to test the market with a pilot run before committing to larger orders, this can be a significant benefit. Generally speaking, Mexico’s business environment has been steadily improving. This has made the country an increasingly attractive option for companies in a variety of industries.

Indonesia: A Rising Manufacturing Hub

You may not have heard as much about Indonesia as you have other APAC countries, but it’s quickly becoming a major manufacturing hub. It is one of the fastest growing options out of our 6 alternatives to importing from China. This is in part due to the country’s relatively low cost of living, which makes it a good alternative to China when you need to source locally. Indonesia’s location also makes it an attractive option for companies that want to source from both China and Southeast Asia. You can easily ship from Jakarta to most Asian markets without paying high rates. This connectivity is part of the reason that Indonesia is projected to become the world’s fourth-largest economy by 2030. The country has been investing heavily in its infrastructure and has seen a rapid increase in productivity over the past decade.

The Philippines: Rising APAC Star

If you’re looking for alternatives to China, you’re probably already aware of some of the top contenders, like Vietnam, India and Indonesia. But perhaps less well known is the Philippines, which is quickly becoming a major manufacturing and outsourcing hub in its own right. The Philippines’ large English-speaking population gives it an edge over other APAC countries. This makes it an excellent choice when you need to source English-language products. Demand in the Philippines is rising in a variety of industries, including healthcare, digital manufacturing and business process outsourcing. This makes it a great place to import from if you’re working in any of these fields. The Philippines is still relatively new as a manufacturing hub. This means that the country has a lot of room to grow and that manufacturers there are more nimble than larger industries in other countries.

Africa: A Dark Horse Shaping the Future

China is a powerhouse for manufacturing and may be the first country that comes to mind when you’re sourcing products. But Africa is also quickly emerging as a significant player in the global manufacturing sector. The continent is home to many low-cost countries that are excellent places to import from. For example, Ethiopia is home to a growing garment industry while Kenya is a major hub in the travel goods sector. Ethiopia is particularly interesting because it’s actively trying to become “the Silicon Valley of Africa”. The government is offering incentives to attract foreign investment and has committed to growing its domestic tech sector. There are a few different reasons that Africa is such a compelling place to import from. For starters, it’s become a much more attractive investment destination. The continent’s rapid growth and declining poverty levels have driven many governments to improve their business climates and remove barriers to foreign investment.

US and Canada: Still Great Alternatives to China

The United States and Canada have advantages beyond proximity, like a common language and shared cultural. This makes them excellent alternatives to importing from China when you need to source English-language products. The US economy is still on the upswing after recovering from the 2008 financial crisis. This has led to an uptick in demand for manufactured goods, including some that are commonly sourced from China. Canada’s economy is also healthy, and it boasts a strong business environment. This makes it an ideal place to import from when you need a low-risk source of high-quality goods with relatively short lead times. While the US and Canada are excellent places to import from, you’ll want to consider some key differences before deciding on a location. The most important thing to keep in mind is the cost of labour. Compared to China, it’s significantly higher.

Bottom line

China is a great place to import from, but it’s no longer the only option. These 6 alternatives to importing from China have each carved out their own niche, and are ready to serve as reliable sourcing partners for your next product. Before you decide on a new sourcing location, though, you’ll want to do some research to make sure that it’s a good fit for your products. Contact us for all your import needs.