Go, go, go for GoPro as it announces a shift of production out of China

GoPro Hero

The ongoing trade war between the US and China, which has seen a temporary truce – now in jeopardy with the arrest of a Huawei executive in Canada – has claimed another China-based manufacturing company as foreign firms reassess their position in China.

Today’s geopolitical environment requires agility, and we’re proactively addressing tariff concerns by moving most of our US-bound camera production out of China. We believe this diversified approach to production can benefit our business regardless of tariff implications.” – Brian McGee, chief financial officer, GoPro.

The tit-for-tat slapping of tariffs on each other’s trade has already prompted some companies to shift their manufacturing out of China, with the latest being high-end, sports video camera manufacturer GoPro saying it will move production of most US-bound cameras out of China by summer 2019.

Cameras bound for other countries will continue to be produced in China, GoPro adds. The announcement doesn’t come as a complete surprise, as its chief executive officer Nick Woodman told CNN in August that it would be “prudent” for the company to consider moving manufacturing out of China to lower costs and cope with potential tariffs.

GoPro hasn’t specified where the US-bound cameras will be produced, but analysts suggest there is a high likelihood they will go to a neighbouring Southeast Asian country like Vietnam or Thailand, which have drawn significant numbers of like-minded companies over the last year or two.

In a statement, GoPro chief financial officer Brian McGee says: “Today’s geopolitical environment requires agility, and we’re proactively addressing tariff concerns by moving most of our US-bound camera production out of China. We believe this diversified approach to production can benefit our business regardless of tariff implications.”

He adds that because GoPro owns its production equipment, with its manufacturing partner providing the facilities, the company, “expect[s] to make this move at a relatively low cost.”

For more on the shift of manufacturing out of China, see AsiaCargoBuzz.com commentary.

Summary
Go, go, go for GoPro as it announces a shift of production out of China
Article Name
Go, go, go for GoPro as it announces a shift of production out of China
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The ongoing trade war between the US and China, which has seen a temporary truce – now in jeopardy from the arrest of a Huawei executive in Canada – has claimed another China-based manufacturing company as foreign firms reassess their position in China.
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AsiaCargoBuzz.com
AsiaCargoBuzz.com
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