Ongoing trade wars, tariffs, and tense negotiations have created unprecedented levels of economic unrest and uncertainty.
With no clear plan or messaging, it has been hard to offer advice on tariffs, given that the rates and targets seem to change daily.
It has become increasingly apparent that the time has come to reconsider the way that business is conducted on a global level.
We may have grown accustomed to a world of possibilities, but the threat of conflict, natural disaster, and economic imposition has jeopardised our interconnected world and made offshoring less viable than it once was.
As an alternative to offshoring, nearshoring, the process wherein a business moves operations to a nearer country, might seem to be a better option for paving the way towards a stable economic future.
Given that we are talking about restricting businesses on a global level, some significant financial considerations must be undertaken before any decisions are made.
Do I need a tariff impact model?
You might have felt the need to become an economist in the past month, with a growing need to understand the global economy.
As the two biggest economies fight for dominance, nearly every country in the world is set to be impacted in some way, with some feeling the strain more than others.
A tariff impact model can help you map and navigate the evolving situation, thus guiding your decisions on determining when, where, and how to import or export goods to and from a new country.
There are resources available to draw from, as most financial data needed for this model is publicly available, but consulting with a financial professional can help you build a resource capable of offering some guidance in this economic storm.
Shifting any part of your business can be daunting, especially when it involves global markets, so understanding the full extent of every decision is necessary for ensuring your business continues to thrive regardless of the economic instability.
Should I nearshore now?
While we may not be as connected to the EU as before Brexit, looking to European countries might be a better prospect than dealing with the USA.
Talk of trade deals abounds, but even these may not provide any solid long-term stability given how frequently policies and plans have changed up to now.
It might feel like you are out of your depth, but most businesses in the world likely feel the same way.
This might make them more open to engaging with new prospects, so the time is right for making different considerations.
Establishing closer economic ties with countries and companies that are also enduring the challenges might help establish a new age of global trading.
Is the economy stabilising?
The economy is undergoing some challenges at the moment, but it might not all be bad news.
Recent inflation trends show some degree of promise within the UK, which might be a small indicator of economic health.
You are not alone in working through the economic uncertainty, and our expert team are on hand to help you through.
Keep your business dynamic by opening yourself up to the possibilities that nearshoring can provide.
Speak to our team today for advice on keeping your business financially agile.