Lenovo refactors its laptop supply chain in response to COVID-19 — Panjiva
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Lenovo refactors its laptop supply chain in response to COVID-19

China 2393 Coronavirus 256 Info Tech - Tech Hardware 550 U.S. 4229

Computer manufacturer Lenovo will increase output at its factories outside China – including those in Mexico, India, Brazil and the U.S. – in response to reduced production in China linked to the COVID-19 coronavirus, South China Morning Post reports. The firm’s manufacturing facility in Hubei province has remained closed.

Lenovo won’t be the only laptop manufacturer needing to rearrange its supply chain in response to COVID-19 related disruptions. Panjiva’s data shows that 92.1% of U.S. imports of laptop computers were sourced from China in 2019, with Vietnam representing 5.0% and Taiwan 1.8% of machines by number. 

Aside from Lenovo, Panjiva’s U.S. seaborne import data shows other major laptop shippers from China include HP Inc. with predominantly all the 1,900 TEUs associated with the firm having been sourced from China in 2019, centered on Chongqing province. 

Dell may have started to diversify with China representing 97.0% of the 980 TEUs linked to the firm in 2019, centered on Jiangsu. Asustek is somewhat more diversified with China – specifically Guangdong – representing 81.4% of the 441 TEUs associated with the firm while Singapore provided the remainder. 

CHINA CONTINUES TO DOMINATE U.S. LAPTOP IMPORTS

Chart segments U.S. imports of laptop computers by origin. Source: Panjiva

The move should prove out the flexibility of Lenovo’s supply chain for both laptop computers and computer monitors, which has been steadily adjusted during the period of the imposition of tariffs, as outlined in Panjiva’s research of Aug. 15.

Panjiva’s data for U.S. seaborne imports and Mexican exports by all transportation modes shows China represented 65.4% of Lenovo-related imports to the U.S. in 2019, down from 80.1% in 2016. The firm has also started to ramp up shipments from Mexico – which accounted for 28.9% of the total – as well as Taiwan.

LENOVO’S MEXICAN SUPPLIES SCALING UP, CHINA POWERING DOWN

Chart segments U.S. imports associated with Lenovo by origin including U.S. seaborne imports and Mexican exports by all transportation modes on a monthly and three-month average basis. Source: Panjiva

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