Lower Production Costs with Direct Ship^SM from MacroFab

International trade agreements are fluctuating at a rapid pace. For electronics OEMs, this means that long-term predictability and pricing can be difficult, if not impossible to achieve. Negotiations with a supplier in one country can quickly turn into a wasted effort when a policy shift increases tariff rates applied to your product.

At MacroFab, we’ve built our platform and service differently than a normal contract manufacturer. Our marketplace has quality, vetted factories in multiple countries and regions that enable us to quickly route, or re-route, materials, tooling, training, and production jobs to new regions. When you place a production order with MacroFab, you gain access to an ever-growing network of factories across the world.

Government tariff policies, whether intentional or unintentional, create incentives to build in specific countries. For example, in early April 2025, current policy applies a significant tariff schedule on products with China as a country of origin, while still exempting non-automotive USMCA-compliant products from Canada and Mexico.

The result of this is that electronics OEMs can see a significant import tax reduction by purchasing materials in Canada or Mexico, assembling the product there, and then importing it to the US vs importing the raw materials into the US for assembly in the US.

These policies will continue to be created and change for the foreseeable future. By having a network across multiple regions, MacroFab enables our customers to take advantage shifting trade alliances and build in the right place at the right time, without having to create new factory relationships, go through expensive qualification processes and make large payments for unused materials.

Direct Ship^SM is MacroFab’s unique service offering that enables our customers to easily build their products across multiple regions and respond to changing trade relationships.

Our AI-driven platform will automatically purchase materials in the country specified and deliver them to the factory without routing through high-tariff regions. The factory will build your product, meeting all product specifications and timelines, and then ship direct from the factory to your chosen destination – resulting in a lower total delivered cost and a substantially lower management cost for your procurement team.

Direct Ship^SM is ideal for medium to high volume products, especially those significantly impacted by input material tariffs, for example, products where the bill of materials represents over 60% of the total product cost.

With Direct Ship^SM, you still get access to the MacroFab Platform, including:

• Instant quoting
• Real-time supply chain feedback, including tariffs on materials
• Real-time order visibility
• Shipment schedules
• Single point of view of all of your orders across your company
• Single point of contact for support and assistance