What was once a cost-saving strategy is now increasingly fraught with financial, operational, and geopolitical risk.
With new global tariffs, supply chain instability, and the need for more responsive product development cycles, nearshoring has emerged as a strategic advantage. For companies looking to protect their margins, safeguard intellectual property, and ensure product quality, working with a trusted U.S. or North American EMS provider like NEOTech is more important than ever.
Over the past several years, the global trade environment has undergone dramatic changes. With the imposition of new tariffs on electronics components and subassemblies imported from China and other parts of Asia, OEMs have experienced sudden cost hikes, some reaching double digits. These tariffs disrupt established cost models and create forecasting difficulties for OEMs trying to maintain pricing stability and profitability.
Furthermore, the nature of these tariffs is volatile—subject to change due to shifting political agendas, trade negotiations, and international disputes. This unpredictability introduces a new layer of risk into offshore production strategies, where companies might face cost increases with little to no notice.
Adding to the complexity, OEMs are increasingly realizing that total landed cost (TLC) extends far beyond per-unit pricing. Tariffs, rising logistics expenses, and the financial burden of carrying larger inventories all contribute to higher overall costs. Nearshoring offers an effective way to stabilize TLC, protect margins, and improve overall operational agility.
Offshore Risks Are Threatening Your Supply Chain — Rising tariffs and global instability are driving high-tech OEMs to rethink manufacturing strategies. NEOTech delivers U.S. and Mexico-based EMS solutions to secure your operations and protect your growth.
As OEMs assess their long-term manufacturing strategies, nearshoring—bringing production closer to the point of consumption—is proving to be a more agile and resilient solution. Nearshoring to the U.S. or Mexico allows companies to:
In today’s environment, proactive resilience has replaced reactive recovery. Forward-thinking OEMs are not just reacting to disruptions—they are strategically future-proofing their operations by relocating production closer to their customer bases and engineering hubs.
Even as OEMs bring final assembly operations closer to home, many of the electronic components used in their products are still sourced from Asia—especially semiconductors, passives, and interconnects. While the U.S. is actively investing in reshoring semiconductor production, the supply chain for other critical components remains globally distributed.
This means that working with a North American EMS provider who understands the complexity of global sourcing is essential. NEOTech has the experience, relationships, and systems in place to manage international supply chains while offering local manufacturing excellence. Our team helps OEMs mitigate sourcing risks, manage lead times, and maintain component availability through dual sourcing strategies and strategic inventory planning.
At NEOTech, we recognize that exceptional manufacturing outcomes are fueled by continuous investment in the latest technology and state-of-the-art equipment. Our commitment to adopting advanced manufacturing tools and automated systems ensures not only the highest levels of product quality, but also manufacturing efficiency, consistency, and scalability for our customers. We believe that staying at the forefront of manufacturing innovation is critical to delivering the performance and reliability our customers demand.
Quality production and supply chain experience are fundamental, but high-tech OEMs require a more comprehensive partnership. NEOTech provides a full spectrum of services designed to support the unique needs of companies in Aerospace & Defense, Medical Devices, and High-Tech Industrial markets. Critical capabilities include:
Engineering & Design for Manufacturability (DFM)
Our engineering teams collaborate with OEMs early in the product development cycle to optimize designs for cost-effective and high-yield production. From layout reviews and prototype builds to test strategy development, our engineering experts ensure that products are built for performance and scalability.
Regulatory Compliance & Certifications
NEOTech’s facilities are certified to industry-specific standards including AS9100 (A&D), ISO 13485 (Medical), and ITAR compliance. We maintain strict traceability, document control, and audit readiness to meet the rigorous demands of regulated industries.
Advanced Test and Quality Assurance
We offer a robust suite of testing services—AOI, X-ray, Flying Probe, Functional Test, and more—to ensure the reliability of every product. Quality isn’t just a checkpoint—it’s a core value embedded into our operations.
Scalable Manufacturing with Flexibility
Whether you’re producing in small batches for specialized applications or scaling to higher volumes, NEOTech offers manufacturing lines that are configured for flexibility, speed, and efficiency.
Program Management & Communication
Our dedicated program managers act as an extension of your team—overseeing every aspect of production, managing changes, and ensuring your product meets every specification and timeline.
Post-Manufacturing Support
From direct order fulfillment and logistics to repair and refurbishment services, NEOTech provides end-to-end support. These services extend the life of your products and reduce total cost of ownership.
NEOTech works side-by-side with our customers from concept to customer, offering integrated product development support that brings ideas to life efficiently and effectively. Our engineering and manufacturing teams collaborate closely with OEM partners to ensure that every phase of the product journey is optimized for quality, manufacturability, and speed-to-market.
Tariff pressures and global supply chain instability are driving OEMs to rethink how they approach electronics manufacturing. To help you make informed decisions, we’ve developed a practical, easy-to-follow Guide to Electronic Manufacturing Services. This resource breaks down what to look for in an EMS partner—especially when shifting production to U.S. or North American providers.
Navigating global tariffs, supply chain complexities, and evolving customer expectations requires a partner who can do more than build a product. At NEOTech, we combine world-class manufacturing with deep engineering expertise, regulatory compliance, and a customer-first mindset.
We’ve helped OEMs overcome the limitations of offshore manufacturing by offering a reliable, transparent, and agile alternative here in North America. Whether your challenges stem from component shortages, rising tariffs, or the need to bring products to market faster—NEOTech is ready to be your strategic partner.
Let’s build smarter. Together.
