Due to trade war between US and China, and the AD/CVD investigation towards imported kitchen cabinets and vanities from China, we received many enquiry about the possibility buying from a outside China source. While it is closing to the preliminary decision of DOC for AD/CVD rate, it become extremely urgent for kitchen cabinet and vanity distributors in United States to find the legitimate, secure substitute of cabinetry supply outside China.
When looking for a solution, be careful as what you are encountered maybe trap instead of opportunity.
Find out if they are actually produced outside China. When a company claim they are a Vietnam kitchen cabinet factory, find out if they do own any production facility in Vietnam. As many company still produce their kitchen cabinets in China, and then ship the containers to Vietnam. This operation may become target of US custom who is closely monitoring South East countries like Vietnam. Therefore, buying cabinets this way could be risky. Tips: Go and visit the factory in Vietnam personally before you place an order.
Status of the Cabinet Factory. It is true that there are some Chinese cabinet manufacturers that already make efforts to build new factory in Vietnam or Malaysia or other country now. With different source and ability, their progress could be faster or slower, and in most cases, much slower than expected. Tips: Estimate the time your inventory could last and prepare a plan B. As a cabinet manufacturer in Vietnam tell you they are putting into production soon, it could be months, or even longer before they can actually begin producing any kitchen cabinets, let alone if their production capacity could meet your needs.
Price issue. Due to lower working efficiency and expensive material and other factors, It is inevitable that price of a Vietnam factory or Malaysia factory will be higher than China. The key is to find a reasonable price if your Vietnam supplier can guarantee the quality and lead time.
When China stop to supply cabinets, other countries can never fill the supply ability gap that China leave. Some Chinese cabinet factory would move or build their production capacity in South East Asia, but we figure these factory will account for no more than 30-40% of all Chinese cabinet companies. There will be huge supply gap. The result is US cabinet company will need to fight for limited production capacity and some will close their business if they fail to secure their supply. You have not seen this happen, why? It is not easy for kitchen cabinet company to change their supplier and most of them are still watching before August when preliminary decision of AD & CVD come out. But it would be too late for you to make decision and act at that time. The whole industry of cabinetry are facing major and permanent change. Every one is forced to make some major decision and change in order to survive.
Take action quickly, but carefully.