SAN ANTONIO, TX – Season Group is seeing a significant surge in enquiries as a result of the changes in US Tariffs with China, the firm says.

“When the initial tariff changes were announced in July, we saw very little change in customer behavior,” said Carl Hung, president and CEO of Season Group. “The feedback we were getting was that customers expected this to be a short-term situation. However, now that some US companies have seen large-scale invoices for their imports from China from the first round of tariffs, the increase in their scope means there appears to be an urgency to find alternative sources to avoid these significant cost increases. Given that Season is one of very few EMS companies of its size that has an EMS footprint in Malaysia, Mexico, USA, UK as well as China, we are being seen as a ‘safe haven’ for many small and medium-size companies that are currently sourcing with companies that have only one site in China. We are getting feedback that the number of options is also important, as there is a fear of ‘where next’ given previous concern over US duties related to Mexico (for The Wall) and current NAFTA negotiations with Canada.”

“We have never had a sales funnel of the size that it is now,” said Charles Tonna, VP business operations and strategy said. “It stands at the equivalent of our annual revenue – with a number of large opportunities due to be added very soon. What I find particularly interesting is even European companies that source in China are looking at their EMS strategy, concerned the single-site China EMS companies, with whom they are currently working, could be adversely affected if their US revenues collapse. In addition, the fact that we also have a China operation appears attractive to customers, as it can help organize the initial transfer, as well as provide an option if the tariffs are ever reversed.”

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