But while relocating production will likely take longer to materialise, Hong Kong’s SMEs are facing another pressing issue – shipping.
Lau said no shipments from China to America were made in April and early May – in the thick of the tariff war – but when the truce came into effect, everyone began “asking for space to ship to the US”.
“I don’t think (shipping companies) have sufficient ships to serve this critical moment,” he added.
“And also, the price of the shipment will be high too. The demand and supply is not even.”
He added that there is more certainty in working on US projects, as American firms usually sign a contract and detail the project timeline in advance. This allows him to organise his manufacturing production systematically.
“Some projects in Hong Kong and also in China, they’re not confirmed until the last minute,” he noted.
“So we are happy with the US style and also, of course, their payment is much greater than Hong Kong and the Chinese markets.”
Lau added that his company is also constantly trying to come up with new designs by holding monthly research and development meetings.
“We try to improve and try to save costs … if you stand still, you will be eliminated by your competitors,” he said.
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