Partner Interview
Published June 9, 2025
Danaher: Tariffs Impact & China Supply Chain
inpractise.com/articles/danaher-tariffs-impact-and-china-supply-chain
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Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.
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What were the results there? In addition to the 20% of direct material inputs, which I understand for the whole supply chain are from China, how much more was there?
Often, it was significant. As much as 50% came from China, even though we were buying from a US company. Over 50% of the content could be considered sourced specifically from China.
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Could you elaborate on the price differential? Specifically, how did it compare with Chinese options in some cases?
The price differential was significant, ranging from 40% to 60% in some areas. When the price differential was smaller, the total equation might suggest maintaining a more robust supply chain rather than pursuing 10% or 15% savings.
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Could you elaborate on the price differential? Specifically, how did it compare with Chinese options in some cases?
Generally, when sourcing from China or other lower-cost regions, the guideline was that if you didn't see 30% savings, it might be better to source elsewhere. However, anything offering savings greater than 30% was a prime candidate for sourcing from a lower-cost region, particularly China.
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