iRobot Diversifies its Manufacturing Supply Chain

Analysis:
Many U.S. manufacturers are actively diversi ing their supply chain and manufacturing locations as they seek alternatives outside of China to reduce exposure to continuing trade issues. For example, the 25% levies against Chinese imports raise the cost of manufactured goods, iRobot’s vacuums among them, which results in reduced unit sales.

In the announcement describing the Malaysia move, iRobot noted that project was completed from start to finish in less than a year and ahead of schedule, a huge undertaking and accomplishment. iRobot also highlighted the assistance it had received from manufacturing solutions provider Jabil.

Jabil has been an iRobot partner since 2006, when it first began supplying parts for iRobot’s mobile robots for defense applications. The corporate partnership was key to the iRobot expansion. In addition to providing manufacturing outsourcing competency, Jabil’s large size, global reach, and massive buying power ensures a vast, diversified supplier base. - Dan Kara