ILMA Compoundings - May 2019 - 24
certifications being required on imported products. "A barrel will come in via FedEx from
Germany, and FedEx, all of a sudden, is saying,
'You have to file this certification with the government,'" he said. "There were some questions on
paperwork to be filed."
Old World Industries (OWI) had seen a decrease
in its sales to China, and product that was being sold
in China was being taxed heavily, so the company
made some changes to its operations, said Steve de
Waard, vice president of lubricants and additives for
OWI, based in Northbrook, Illinois.
Although a "Made in the USA" label is important
with Chinese consumers, OWI has opted to work with a
local contact that is producing the product in China, de
Waard said, to minimize the risk of a long-term disruption.
The company plans to eventually return to being a madein-the-USA brand once the trade war ends. "We have lost
volume made in the U.S., but we have maintained a way to
keep Peak brand in the market," he said.
Eggenschwiler said he has heard from several manufacturers that are turning to co-blenders outside of the U.S. "It is a
U.S. formulation, but it isn't made in the U.S. Some had the
ability to take that opportunity and could secure the manufacturing capacity, but that isn't for everybody," he said,
adding that moving manufacturing can create additional risk
if the company can't invest the time to manage the process
and monitor quality.
Similarly, some manufacturers have shifted production
from China to other countries to ease concerns for those
importing to the U.S. "For that reason, there have been
some that are successful at buying from a different country
24
MAY 2019
| COMPOUNDINGS | ILMA.ORG
of origin than China because they have been told the production they're buying has been shifted to a different location
outside of China and what they're buying is actually made in
Malaysia, Philippines or Indonesia," Eggenschwiler said.
However, Eggenschwiler said it is possible that China
is simply shipping product to another location to make
it appear that the product was manufactured there. "That
you wouldn't know until the State Department did an
inspection," he said, adding that the de facto onus is on the
importer to investigate the product, and national security
laws say manufacturers need to know who they are doing
business with for their customers as well as suppliers.
Pursuing alternative sourcing can give ILMA members
additional options when supply gets tight or disruptions
occur. "There are a lot of companies that find multiple suppliers of a particular product. They're not necessarily going
to buy in large quantities long-term, but they want to have
them as an option," Eggenschwiler said.
http://www.ILMA.ORG
ILMA Compoundings - May 2019
Table of Contents for the Digital Edition of ILMA Compoundings - May 2019
LETTER FROM THE CEO
INSIDE ILMA
WHAT’S COMING UP
INDUSTRY RUNDOWN
TRADE ISSUES, TARIFFS CREATE CONCERNS FOR MANUFACTURERS
EMBRACING THE RAINBOW
THE FATE OF THE FAMILY TREE
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
ILMA Compoundings - May 2019 - Cover1
ILMA Compoundings - May 2019 - Cover2
ILMA Compoundings - May 2019 - 1
ILMA Compoundings - May 2019 - 2
ILMA Compoundings - May 2019 - LETTER FROM THE CEO
ILMA Compoundings - May 2019 - INSIDE ILMA
ILMA Compoundings - May 2019 - 5
ILMA Compoundings - May 2019 - 6
ILMA Compoundings - May 2019 - 7
ILMA Compoundings - May 2019 - 8
ILMA Compoundings - May 2019 - 9
ILMA Compoundings - May 2019 - WHAT’S COMING UP
ILMA Compoundings - May 2019 - 11
ILMA Compoundings - May 2019 - INDUSTRY RUNDOWN
ILMA Compoundings - May 2019 - 13
ILMA Compoundings - May 2019 - 14
ILMA Compoundings - May 2019 - 15
ILMA Compoundings - May 2019 - 16
ILMA Compoundings - May 2019 - 17
ILMA Compoundings - May 2019 - 18
ILMA Compoundings - May 2019 - 19
ILMA Compoundings - May 2019 - 20
ILMA Compoundings - May 2019 - 21
ILMA Compoundings - May 2019 - TRADE ISSUES, TARIFFS CREATE CONCERNS FOR MANUFACTURERS
ILMA Compoundings - May 2019 - 23
ILMA Compoundings - May 2019 - 24
ILMA Compoundings - May 2019 - 25
ILMA Compoundings - May 2019 - 26
ILMA Compoundings - May 2019 - 27
ILMA Compoundings - May 2019 - EMBRACING THE RAINBOW
ILMA Compoundings - May 2019 - 29
ILMA Compoundings - May 2019 - 30
ILMA Compoundings - May 2019 - 31
ILMA Compoundings - May 2019 - 32
ILMA Compoundings - May 2019 - 33
ILMA Compoundings - May 2019 - THE FATE OF THE FAMILY TREE
ILMA Compoundings - May 2019 - 35
ILMA Compoundings - May 2019 - 36
ILMA Compoundings - May 2019 - 37
ILMA Compoundings - May 2019 - BUSINESS HUB
ILMA Compoundings - May 2019 - 39
ILMA Compoundings - May 2019 - COUNSEL COMPOUND
ILMA Compoundings - May 2019 - 41
ILMA Compoundings - May 2019 - 42
ILMA Compoundings - May 2019 - 43
ILMA Compoundings - May 2019 - WASHINGTON LANDSCAPE
ILMA Compoundings - May 2019 - 45
ILMA Compoundings - May 2019 - IN NETWORK
ILMA Compoundings - May 2019 - 47
ILMA Compoundings - May 2019 - 48
ILMA Compoundings - May 2019 - 49
ILMA Compoundings - May 2019 - 50
ILMA Compoundings - May 2019 - 51
ILMA Compoundings - May 2019 - 52
ILMA Compoundings - May 2019 - Cover3
ILMA Compoundings - May 2019 - Cover4
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