For years, third-party logistics (3PL) providers have focused on a simple business model: receive, sort, and ship. But as global supply chains evolve and companies look for ways to regain control over their operations, 3PLs face a critical choice—continue as a commodity service or become an essential value-added partner in reshoring efforts.
China remains the dominant force in global manufacturing, accounting for nearly 30% of global production (Statista, 2024). However, increasing tariffs, rising labor costs, and growing geopolitical risks have made direct imports less attractive for U.S. businesses. Companies need a way to balance cost efficiency, speed, and risk mitigation without committing massive capital to full-scale production facilities.
Adding to this shift, the Section 321 de minimis loophole closure has led many businesses to reevaluate their import strategies. Previously, businesses could avoid duties and tariffs on shipments valued under $800 by shipping direct to consumers from China using the de minimis provision. With stricter enforcement and possible legislative changes restricting or eliminating this provision, many companies are now facing the reality that direct import models may no longer be the cost-saving strategy they once were. As a result, businesses that previously relied on small parcel shipments direct from China are now considering alternatives such as importing components and performing final assembly and fulfillment within the U.S.
This is where progressive 3PLs can step in. By offering assembly, finishing, light machining, and packaging services, 3PLs can help businesses reduce tariffs, protect intellectual property, improve quality control, and speed up fulfillment—without forcing them into massive capital investments.
The message is clear: 3PLs that evolve beyond warehousing into value-added services will capture high-margin, long-term contracts. Those that don’t will be left behind.
Let’s consider a real-world example.
A U.S. company imports a finished product from China at $150 per unit. The 25% U.S. tariff on the retail price adds $37.50 per unit in duties. However, if the company instead imports the product as separate components at a raw material cost of $35 per unit, the tariff applies to the lower cost—reducing the duty burden to $1.75 per unit. That’s a savings of $35.75 per unit before any additional benefits are factored in.
Now, let’s add a 3PL into the equation. If the 3PL provides assembly, finishing, and packaging services for $10 to $20 per unit, the business still saves $15 to $25 per unit while gaining domestic control over final production, improving responsiveness, and ensuring higher quality standards.
Companies like Apple, Tesla, and Peloton have all strategically leveraged domestic assembly and finishing to reduce costs while maintaining strict quality control over high-value products. The same principle applies at a smaller scale for any business looking to improve margins and de-risk supply chain dependence on China.
While shifting to a component import model can create significant cost savings, businesses must ensure they are correctly classifying their products for import compliance. U.S. Customs and Border Protection (CBP) enforces strict guidelines on tariff classifications, and misclassification can result in heavy fines or legal repercussions. Importers should work closely with customs brokers and compliance specialists to verify the correct Harmonized Tariff Schedule (HTS) codes for their products.
Additionally, businesses must confirm that their component imports qualify as unfinished goods rather than semi-finished products that could still trigger higher tariffs. By consulting with experts, companies can maximize savings while maintaining compliance with all import regulations.
Tariffs aren’t the only risk with direct imports from China—intellectual property theft and inconsistent quality are just as costly.
By keeping final assembly, finishing, and packaging in the U.S., businesses can:
A 3PL offering final assembly and finishing services enables companies to manufacture affordably in China while safeguarding their brand reputation and product integrity in the U.S.
Many 3PLs hesitate to enter value-added services due to capital investment concerns. However, the reality is that this expansion requires minimal investment when approached correctly and can create a new, high-margin revenue stream.
Not all customers are a fit for value-added assembly and finishing services. 3PLs should target:
3PLs don’t need to invest in expensive automation or high-tech manufacturing systems. Instead, they can:
Labor is one of the biggest challenges for 3PLs looking to expand beyond warehousing. Hiring full-time employees for a fluctuating workload adds unnecessary fixed costs. Instead, 3PLs can use Veryable's on-demand labor marketplace to:
Veryable is the key enabler for 3PLs looking to expand beyond warehousing into assembly, finishing, and packaging services without taking on unnecessary risk. With Your Labor Pool (YLP), 3PLs can build a custom network of pre-vetted workers, ensuring consistency in quality and efficiency without fixed labor costs. Additionally, Veryable's operations leadership team provides hands-on support to help 3PLs optimize workflows, improve labor efficiency, and streamline their expansion into value-added services. This combination of labor flexibility, operational expertise, and cost control allows 3PLs to become essential reshoring partners for businesses, capturing new revenue streams while keeping operations lean and agile.
To make value-added services a long-term competitive advantage, 3PLs should:
By positioning themselves as a logistics and assembly partner rather than just a storage provider, 3PLs can capture more revenue per unit shipped while increasing customer retention.
The companies reshoring production don’t need another warehouse—they need partners who can handle final assembly, quality assurance, and fulfillment.
3PLs that recognize this shift and act now will position themselves as essential players in the next wave of U.S. manufacturing. This is especially crucial for businesses looking to scale rapidly, handle viral product demand, or offer customization—all of which require agility and domestic control that offshore production cannot provide.
Will your 3PL adapt and capture this opportunity, or will it remain just another storage provider in a rapidly evolving market?
Let’s discuss how Veryable can help you launch value-added services profitably. Reach out today and let’s build the next generation of 3PL capabilities together. To begin your journey now, click here.
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