As the world continues to navigate new tariffs and the uncertainty that comes with them, manufacturers may need to reevaluate their current labeling environment, especially if they decide to shift production to other countries. This is a major change for businesses, as relocating production or sourcing from domestic raw materials suppliers also requires reexamining their labeling processes.
The world is seeing the new tariffs raising prices, reducing the availability of goods and services for U.S. businesses and consumers, and placing an economic burden on imported products. The goal is to encourage consumers to buy more American-made goods, which eventually should increase domestic investment.
How tariffs impact sourcing and labeling requirements
As companies face higher costs due to tariffs, many are considering moving production to other countries. In the Strategist, real-life stories highlight businesses shifting production from China to countries like Cambodia or Vietnam. Some companies are even moving production to South American countries or Europe, then importing raw materials from China or Mexico, and finally shipping finished goods to the U.S. from South America to avoid tariffs.
What companies must do to reshore or relocate production
When making the switch from one country to another, there are specific labeling questions you should ask yourself beyond updating the country of origin:
- Are there any updates to language translations?
- Are there any changes to regulatory symbols?
- Are there any updates that need to be made to the manufacturing location, distributor information, or material sourcing listed on the label?
- Are there different barcode formats?
If any of the answers are “yes,” then making sure you meet those requirements is important. The best way to stay on top of requirements and to know which ones you must meet is to ask local regulatory consultants, trade organizations, and government export/import teams.
By building connections with these experts, you can help reduce the risk of:
- Fines
- Product recalls
- Damage to brand reputation
- Delays in production
Companies should have labeling software to update or change their labels to meet compliance quickly.
How labeling can help you meet changing requirements
Automation
Automated label printing replaces the manual task of creating and printing a label with a faster and more efficient automated process. Print automation minimizes touch points within the labeling process by reducing errors with human interaction.
With automation, label printing can be triggered by using the data from your existing business system, ERP, or WMS. This integration ensures that labels are generated in real-time, reflecting the most current information and compliance standards. It can automatically populate your labels and print to an unlimited number of printers.
From the real-life stories above, if businesses switch their production from China to Cambodia, their business system can automatically update the country of origin without manually changing each label, which also helps reduce manual errors.
As tariffs continue to change, automating your label printing can give you the confidence that the labels that you print will be accurate and compliant.
Centralized label management
Moving production to a new country can be complex, but your labeling processes shouldn’t be. Consider relying on a centralized label management system. A centralized label management solution handles label design, approval, printing, and reporting, which can help your business with complex labeling requirements. You can deploy, maintain, and scale globally with a centralized labeling system. It can also help reduce errors and increase security and accuracy.
Centralized label management also provides a browser-based printing interface that allows facilities to securely print labels from the web without installing label design software locally. This gives businesses the ability to print labels on-demand from anywhere in the world with secure user logins managed centrally. As sourcing locations change, browser-based label printing makes it easier for businesses to give new suppliers access to the necessary labels.
With version control and audit trail, if regulations change, so can your labels. With centralized label management, you can have a record of changes made to an entity. Because the label audit trail includes records of any changes made to the label design, it also supports a label version history. Using label version history, you can review the changes made over time and even revert to a previous version if necessary.
As manufacturers continue to navigate tariff-related uncertainty the impact on labeling should be top of mind to help avoid or recover from supply chain disruptions. As companies reshore or move production to other countries, they must be aware of new labeling rules and regulations to make sure their product labels stay compliant, and be able to adapt their labels quickly.
When it comes to finding a labeling provider, look for one that can help you navigate through changing tariffs, reshoring or sourcing changes, and regulations. It’s also important to find a labeling provider that is there for you when you need it, whether with responsive customer support, flexible licensing options, or professional services to help you create compliant and flexible label templates.