Fortec uses Egypt to avoid tariffs

Fortec in Germany is providing European companies with a strategic solution to navigate potential tariffs when exporting to the US. The company specializes in developing and packaging industrial displays for embedded systems and power supplies. By combining local manufacturing in the United States with the pre-assembly of electronic components in Egypt, Fortec offers a cost-effective pathway for the electronics industry to access the US market. Ulrich Ermel, Chief Operating Officer of Fortec Elektronik AG and Managing Director of FORTEC Integrated, emphasizes that their global manufacturing strategy shields customers from unexpected customs charges and ensures competitive pricing in the long run.

While chips and boards are currently exempt from retaliatory tariffs when entering the US, the impending changes in tariff regulations are causing uncertainty in the industry. To mitigate the impact of tariffs, distributors like DigiKey are utilizing tariff-free zones for importing and exporting boards. In response to their expanding operations, Distec has rebranded to Fortec Integrated, reflecting their integrated approach to manufacturing and distribution.

The coordinated production chain at Fortec is designed to avoid excessive surcharges by subjecting products with added value to regular customs duties, currently set at 10%. This approach results in more stable and predictable import costs, providing businesses with enhanced planning certainty even amidst a volatile trade environment. By streamlining the production process and optimizing supply chain logistics, Fortec ensures that European industrial customers benefit from shorter delivery times, stringent quality standards, and a transparent cost structure.

Furthermore, the strategic placement of production sites around the world with local warehousing facilities enables Fortec to navigate trade sanctions and sudden customs adjustments effectively. This proactive approach to material procurement not only safeguards against disruptions but also enhances operational efficiency. With a focus on resilience and adaptability, Fortec is well-positioned to support European companies in overcoming trade barriers and expanding their presence in the global market.

Incorporating cutting-edge technologies like Raspberry Pi integration for industrial displays with Android 13, Fortec continues to innovate and meet the evolving needs of the electronics industry. By staying ahead of market trends and regulatory changes, Fortec remains a reliable partner for European businesses seeking to establish a foothold in the US market while minimizing the impact of tariffs and trade uncertainties.