CNBC AI News – July 31 – Logitech (LOGI), the Swiss-American peripheral maker, is actively diversifying its manufacturing footprint outside of China to mitigate the impact of U.S. tariffs. CEO Hanneke Faber recently stated that the company’s strategic shift is progressing as planned.
According to Faber, Logitech aims to reduce the percentage of its U.S. imports manufactured in China to under 10% by the end of this year. The company has already made significant strides, reducing the figure from 40% to approximately 10%. This proactive approach showcases Logitech’s agility in navigating complex global trade dynamics.
Logitech is strategically relocating production to countries including Malaysia, Mexico, Thailand, and Vietnam, leveraging established relationships with contract manufacturers. This multifaceted approach not only reduces reliance on a single manufacturing hub but also unlocks potential cost efficiencies.
“Our diversification of manufacturing across Asia and into Mexico has been exemplary,” Faber noted. “We have not seen any increase in material costs associated with the shift, which is a remarkable achievement.” This statement signals the success of Logitech’s strategic realignment and its operational efficiency.
To partially offset the initial impact of tariffs, Logitech previously implemented a 10% price increase on its U.S. products. However, the company currently has no plans for further price adjustments, indicating confidence in its ability to manage costs through supply chain optimization. This suggests a commitment to maintaining market competitiveness despite external economic pressures.
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