Amid the protracted and unpredictable trade war between the US and China, a Hong Kong -based garment maker is looking to spread out its supply chain risks rather than simply move its production base out of China.
Lever Style will continue to hedge its bets and is looking at a lot more countries to spread its geopolitical risks and also cost inflation. It is constantly evaluating and seeing what’s the best combination that gives it cost effectiveness as well as agility.
Lever Style used to manufacture all its products in China a decade ago but has since moved much of its production out of the country due to rising costs. Now, the company produces in countries such as Vietnam, Cambodia and Indonesia. Lever Style is also trying to change the way it’s managed as a factory, such as by working with production partners around the region instead of going it alone. The company’s clients include fashion labels such as Coach and Paul Smith. However, garment manufacturing is labor intensive — one factor that could limit the business’ flexibility. The more labor intensive things are, the harder it is to just spread things around too much.
The US and China have imposed new tariffs on each other’s goods, intensifying a long-drawn trade dispute between the world’s two largest economies.
