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Is there a recommended process for choosing new countries to manufacture in? What should I prioritize when evaluating new sourcing regions?

Updated over a month ago

Yes. When considering alternatives to your current manufacturing base, it’s important to take a strategic approach. The goal is to identify countries that align with your business goals while reducing exposure to high tariffs or supply chain risk.

Here are key factors to prioritize:

  • Tariffs and trade agreements:
    Look for countries with favorable trade status or agreements with the U.S. (e.g., USMCA for Mexico, GSP eligibility).

  • Shipping logistics:
    Proximity to major ports and reliable freight options can make a major difference in transit times and costs.

  • Labor costs and infrastructure:
    Assess labor competitiveness and the maturity of the local manufacturing sector—some countries may specialize in apparel, others in hard goods.

  • Sustainability and ethical standards:
    Choose countries and suppliers with clear labor policies, environmental compliance, and transparency in operations.

  • Government incentives:
    Some governments offer tax relief or subsidies to attract foreign manufacturing. Ask potential suppliers if they benefit from any local incentives.

Once you've narrowed down a few promising regions:

  • Use sourcing tools like Pietra AI to discover verified factories

  • Pilot small production runs before scaling

  • Consult your customs broker about any country-specific regulations or risks


Note: Answers reflect the current status as of April 18th, 2025.

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