Tariffs, Supply Chains, and Manufacturing Strategy: Our Most Frequently Asked Questions; Q1 2025 Edition
We’ve been getting a lot of the same questions lately from hardware companies trying to navigate today’s shifting global manufacturing landscape. So we thought we’d put some of the most common ones in one place, along with how we’re thinking about them.
Q: Should we move manufacturing out of China because of tariffs?
A: Not necessarily. Tariffs are a real cost, but so are delays, poor quality, and limited factory access. China still has unmatched speed, infrastructure, and reliability in many cases. We often advise clients to run a full landed cost analysis before making a move — and for many, staying in China (or using it alongside another region) still makes sense.
Q: Is Southeast Asia the best alternative?
A: It can be — but it's not a silver bullet. Countries like Vietnam and the Philippines are overloaded. Larger brands are locking up capacity, which creates delays and raises costs. For smaller companies, this often means long lead times or being deprioritized. We recommend having a backup plan and engaging early if you're looking to manufacture in these regions.
Q: What is a "China +1" strategy and should we be doing it?
A: A China +1 strategy means diversifying your supply chain so you’re not dependent on one country. It doesn't mean leaving China completely. Many of our clients maintain relationships with Chinese factories but supplement with options in Southeast Asia, Mexico, or the U.S. It’s a smart way to manage risk without sacrificing efficiency.
Q: What’s the benefit of a hybrid manufacturing model?
A: Hybrid models allow you to mix strengths from different regions. For example, you can manufacture PCBs and molds in China — where tooling and board production are highly cost-effective — and then handle SMT and final assembly in Southeast Asia. Alternatively, you might choose to complete manufacturing in Asia and handle final assembly and packaging in the U.S. This gives you more flexibility on compliance, packaging customization, and delivery timelines, while leveraging cost advantages overseas.
Q: How do we make sure we’re ready for production?
A: A strong readiness checklist includes:
A final BOM with part numbers and references
Gerber and mechanical files
A functional prototype
Defined testing and QC procedures
Target order quantities and forecasts
Packaging, labeling, and compliance requirements (FCC, CE, etc.)
Most delays happen when key documentation is missing. We help clients get this in order before requesting quotes.
Q: What do we need to get accurate quotes?
A: At minimum:
Engineering-ready files (Gerber, CAD, BOM, test plans)
Known production quantity
Design freeze (no more last-minute changes)
Clear expectations around timelines and deliverables
Packaging and regulatory considerations (e.g., labeling, barcodes, warnings)
The more precise your inputs, the faster and more accurate your quotes will be.
Q: What’s the biggest mistake smaller companies make in manufacturing?
A: Three big ones:
Waiting too long to engage with suppliers or manufacturing partners
Trying to manage everything in-house without the experience or time
Chasing the lowest quote without understanding hidden risks (e.g. poor quality, missed deadlines)
Early planning and strong partnerships can avoid these pitfalls.
Q: We’re a startup. Should we try to find a factory ourselves or work with a partner?
A: If you have deep experience and time to manage sourcing, supplier negotiations, DFM, and logistics, it’s possible. But for most startups, working with a trusted partner (like Knectiv) saves time, reduces risk, and avoids costly mistakes. We act as an extension of your team and help get it right the first time.
Q: How is Knectiv different from other manufacturers or brokers?
A: We’re a product development and manufacturing partner. That means we:
Offer support across design, sourcing, and production
Manage quotes and factory relationships directly
Help with cost-down analysis, risk tradeoffs, and scaling
Operate globally: China, SE Asia, Mexico, and the U.S.
Act as your strategic partner, not just a middleman
Q: What does a typical engagement look like?
A: It depends on your stage. For many clients:
We review or finalize engineering files
Run a quoting process across regions
Present a clear set of options with cost/timeline tradeoffs
Align on factory choice and production plan
Support QC, logistics, and ongoing updates
We're hands-on from early design feedback through to your final shipment.
Q: What industries do you specialize in?
A: We work with:
Consumer electronics and crowdfunding hardware brands
Industrial and commercial electronics (IoT, sensors, tools)
Light medical devices (Class I/II)
Education and STEM hardware platforms
Our sweet spot is turning a validated prototype into a mass-producible, high-quality product.
Q: How do we start working with you?
A: Just reach out. We usually begin with a short discovery call to understand where you're at — concept, prototype, production shift — and we go from there.