Latest news with #MartinBalaam
Yahoo
01-08-2025
- Business
- Yahoo
Are Pakistan and Mexico Becoming Denim's Top Sourcing Destinations?
Uncertainty loomed over Kingpins New York last week, as a noticeably quieter show floor mirrored the mood of a denim industry. Typically buzzing with brands, retailers and denim heads from across the globe, this season's edition felt noticeably quieter than in previous years. While industry leaders still showed up, many openly admitted that Kingpins New York is 'not what it used to be.' More from Sourcing Journal Denim Mills Say Clients Are Taking a More Measured Approach to Seasonal Sourcing Arvind Limited Puts Denim Innovation on Display at Kingpins New York AGI Denim's New Concept Delivers Superior Chip-off Effects One of the key factors behind the dampened energy is the ongoing trade war, ignited by U.S. President Donald Trump earlier this year. With tariffs shifting unpredictably and trade relationships in flux, mills are being forced to rethink sourcing and production strategies from the ground up, often without a clear sense of when, where or how steeply new duties will hit. Adding fuel to the fire, this climate of uncertainty has left suppliers scrambling to contain rising costs, manage logistical disruptions and maintain confidence in long-term planning. Amid these mounting pressures, Martin Balaam, CEO and co-founder of Pimberly—a software company helping retail navigate the digital landscape with product information management (PIM) solutions—noted that both Pakistan and Mexico are starting to 'emerge as strong contenders' as mills seek agility and competitive costs. 'Pakistan would be seen as a credible low cost supplier, especially as it already has proven itself for many larger denim brands as a great alternative with good vertical integration and innovation, and is emerging as a country that takes sustainability seriously. For many, this would be just about re-allocating production volumes rather than setting up new suppliers and logistics, so an easy win,' Balaam told Sourcing Journal. 'Meanwhile, Mexico will be seen as a good agile supplier as its near shore and easy logistics would make it friendly for speed-to-market.' Talks at Kingpins painted a picture that closely mirrored Balaam's outlook. Karachi, Pakistan-based vertical denim manufacturer Soorty revealed plans to ramp up production, a move made possible by its diversified supply chain, even amid the ongoing global trade war. 'These are undoubtedly challenging times…brands are unsure what's coming next, and to support them, they need supply chains that can handle pressure and pivot quickly,' said Muhammad Ali, vice president of marketing and sales at Soorty. 'That said, we're the only company with cross-manufacturing in Bangladesh, in addition to our own government-approved factories there. So, If there's an issue in Bangladesh, Pakistan can step in and [vice versa].' Beyond cross-manufacturing, Ali noted that its global presence gives Soorty 'an edge' over competitors. 'We have a design studio in New York, designers in Barcelona, communications in Amsterdam, a new design office in the United Kingdom, developers in Turkey and our sales office in Pakistan,' he added. 'Having such a wide footprint gives suppliers confidence that we can deliver—even when the ship is on fire. That's why we're beyond optimistic about the future of our business.' Meanwhile, roughly 8,000 miles away in Mexico, business is also on an upswing. That's according to Stephanie Poon, Twin Dragon's director of marketing and merchandising, who noted that Mexico has become a 'preferred region' for some of the company's customers. 'We're very optimistic about business,' Poon said. 'One of our key advantages is having mills in Mexico, China and Vietnam and operations in L.A., which gives our customers multiple sourcing options. Right now, Mexico is emerging as a preferred region for many, and that flexibility sets us apart from mills limited to just one location.' Turkish denim mill Isko is less optimistic about business. According to Onur Çınar, marketing executive at the Turkish denim mill, navigating constantly shifting tariffs has been challenging, but the company remains 'cautiously optimistic,' relying on expanded sustainability initiatives to try and stay ahead of the market. 'The textile market isn't doing so well globally, which is a big concern,' Çınar said. 'But we're maintaining an optimistic outlook by focusing on more sustainable products. This means using higher percentages of recycled yarns and fabrics. It's better for the environment and helps us stay competitive in the industry. That's [not to say that] sustainability hasn't always been our top priority, we just believe our customers value that commitment, even in challenging times [like this], so we're [really leaning into it].' While Mexico and Pakistan may be gaining momentum, Balaam echoed Ali's sentiment, adding that that maintaining a diverse supply chain is ultimately key to staying competitive. 'Pakistan and Mexico may indeed become the next denim powerhouses…but success will hinge not just on where jeans are made, but how,' Balaam said. 'In reality, major brands will want a diverse supply chain, and we expect there will be a mix of nearshoring, low-cost sourcing and sustainable production hubs. And it's not all about tariffs. Over the past couple of years, logistical disruptions to shipping have also weighed heavily on buyers' minds, so that's something denim mills will also need to consider if they want to stay ahead.'
Yahoo
12-03-2025
- Automotive
- Yahoo
How US trade tariffs could ripple higher costs through the US auto industry
Martin Balaam, CEO and Founder of Pimberly, a digital commerce specialist, outlines the impacts that US trade tariffs – especially those imposed on automotive vehicle and component parts imported from neighbouring Mexico and Canada - could have on the US auto sector. JA: Although they have been postponed for USMCA-compliant auto trade until early April, what would the short-term impact of 25% US import tariffs on shipments from Canada and Mexico be—in terms of trade flows and also new vehicle prices facing US consumers? MB: If they apply, these 25% tariffs on imports from Canada and Mexico can be expected to drastically disrupt trade flows. Given the deeply integrated nature of North American automotive supply chains, these tariffs could significantly increase the cost of vehicles due to the high volume of parts sourced from these countries. Consequently, US consumers will likely see noticeable surges in new vehicle prices. Beyond new vehicle costs, the impact will ripple through the broader automotive market. The cost of vehicle repairs will rise as the price of imported parts climbs. In turn, we'll see much higher vehicle insurance premiums, given that repair costs are a major factor in determining rates. Auto parts distributors – even if they work on stockpiling before April – would face pressure on cash, as they must fund an extra 25% in costs for parts. This financial strain will cascade down the supply chain, forcing automotive companies to stretch business-to-business trade credit to cover the sudden spike in costs. Some auto repair centres operating at or near their credit limits may even be pushed into cash-on-order arrangements, which could disrupt service availability and further exacerbate repair costs for consumers. JA: What about the longer-term impacts? (e.g., producing more in the U.S.—how quickly can OEMs or part suppliers change manufacturing plans, manage inventory, etc.) MB: Over the longer term, while there might be a push to have the majority of production happen within the US, the shift won't be swift or straightforward. Establishing new manufacturing facilities or reconfiguring existing ones requires significant time and investment. Additionally, higher labour costs in the US would offset some of the benefits of local production - which manufacturers need to take into account as they plan ahead. Therefore, any substantial realignment of manufacturing strategies would likely unfold over several years. JA: What can companies do to mitigate the effects of this kind of supply chain disruption? MB: To navigate these challenges, companies should enhance supply chain visibility and flexibility. Investing in digital tools, such as PIM (Product Information Management) or OMS (Order Management System), that provide real-time data can aid in anticipating and responding to disruptions. Diversifying supplier bases and exploring alternative (and domestic) sourcing strategies can also help mitigate risks associated with such tariffs. JA: Do you think the Trump administration's strategy is the right way to make the US auto industry more competitive internationally, or is there a danger of a trade war negatively impacting US firms, too? MB: In my view, while the intention of bolstering domestic manufacturing is understandable, imposing steep tariffs as the President has proposed, carries the risk of unintended consequences. There's a genuine concern that such measures could escalate into broader trade conflicts, potentially harming US businesses and, in turn, everyday consumers. A more collaborative approach, focusing on innovation, might yield better outcomes for the US auto industry on the global stage. "How US trade tariffs could ripple higher costs through the US auto industry" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
