Key Reasons Pandora Won’t Reshore Production

(“Reshoring” = bringing manufacturing back to the U.S.)

  1. Skilled Workers Are in Thailand
    • Pandora employs 15,000 craftspeople in Thailand with generations of jewelry-making expertise.
    • CEO Alexander Lacik: “It’s not like moving a machine. You need people trained for years in delicate craftsmanship.”
  2. Time and Cost Are Huge Barriers
    • Building a new factory (even in Vietnam) takes 3+ years to start.
    • U.S. labor costs are too high to make profits work.
  3. Tariffs vs. Relocation: Pick Your Poison
    • A new Vietnam factory would face 46% U.S. tariffs anyway.
    • Moving to the U.S. would be even pricier.

What This Means for Prices

Pandora has two options:

  • Absorb the extra costs (and make less profit).
  • Raise prices for customers.

Why It Matters

  • Global supply chains are sticky: Once companies set up overseas (especially for skilled work), it’s hard to undo.
  • Your jewelry might get pricier: Tariffs could trickle down to shoppers.

P.S. – The CEO’s Blunt Take

“If I moved production to the U.S., the math just doesn’t add up.”

Fun(ish) Fact: The article ends with a cheeky suggestion: Skip Pandora charms and buy gold/silver instead—they’re “real stores of value.” 💰