News

Manufacturing on the move: Seizing opportunity amid change

16 June 2025

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There is no ignoring the elevated uncertainty in the global business environment. With almost every business analyzing their supply chain and manufacturing footprint, we here at Hogan Lovells, are monitoring these developments closely on a global basis.

We work extensively with clients in several sectors on these issues and identify ways we can help businesses meet their strategic goals in this time of elevated uncertainty.

What’s happening

Geopolitical tensions are escalating
Rise in policy interventions globally
Significant business uncertainty around tariffs
Companies are evaluating supply lines
Manufacturing relocating to reduce risk

Why

U.S. and China leaning into perceived strengths
China produces 27% of global industrial production, expected to be 45% by 2030
U.S. energy abundance, tech leadership and country where most profits made
Both U.S. and China have risks: U.S. needs Chinese products for supply chains and China needs
U.S. market for its manufactured goods
The potential explosion of AI capacity fuels fears that future success must be won now

Why it matters

Fundamental realignment of cost and risk of supply chains
Businesses need to act among increasingly uncertain policy and business context
Expensive complex trade-offs with multi-year impact

How we can help

Global awareness of policy context
Advise on all aspects of moving manufacturing operations: finance, tax, securing required permits, and developing optimal contracts
Analyze tariff and non-tariff impact
Develop appropriate compliance strategies, including environmental, labor, cybersecurity
Optimize use of government incentives

What we do

Geopolitical Assessment

Evaluate global developments to help companies evaluate risk to their business and get ahead of it while seeking opportunities for advantage

Corporate Structure and Financing

Advise on corporate structure to align with regulations and maximize operational efficiency
Advise on vertical integration, JVs and off-take arrangements
Provide strategic tax planning to optimize financial benefits

Regulatory Compliance and Permitting

Provide guidance on global compliance strategies, including permitting requirements
Ensure compliance with environmental and other regulations
Represent clients in negotiations and disputes with regulatory bodies

Supply Chain Management

Evaluate supply chains to develop durable global strategy
Advise on drafting and negotiating contracts with suppliers to mitigate risks and ensure reliability

Authored by Emerson Holmes and Lance Bultena.