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Declining job listings and headcount at Arrow Electronics as China tariffs take toll

8 months ago by James Mattone in Markets, Tech
Credit: John Lee

As the trade war between China and the United States escalates, companies like Arrow Electronics ($NYSE:ARW) are already feeling the brunt of escalating costs. Both Arrow's job listings and stock price have declined notably in the past month. Many factors could be to blame for the slowdown, but Arrow isn't hiding the fact that these tariffs are hurting its supply chain, with a statement on its site that directly links difficulties in China to the declines.

Arrow has a sizable chunk of its workforce over in China, as evidenced by job openings on its website. From December 1 to June 6, those listings dropped sharply by 76.9%.

Job openings at the company were slashed in half over the month of May.

This nosedive runs in tandem with the company's stock, which took a beating last month as President Donald Trump continues to ramp up pressure against China.

Arrow has a sizable chunk of its workforce over in China, as evidenced by job openings on its website. From December 1 to June 6, those listings dropped sharply by 76.9%.

Arrow Electronics warned investors and customers about the impact of these tariffs on its website back in 2018, pointing out that some of its products are imported from China and would see tariffs of 25% as of March 1, 2019 onwards. "Arrow will continue working with our customers, suppliers and industry trade organizations to identify and minimize supply chain impact," it said. "We also are advocating for a reduced number of products identified on each list."

We reached out to Arrow Electronics for further comment about the tariffs' impact on its business and awaiting a reply.

What does this all translate to? A slowing headcount increase on LinkedIn, where the number of accounts who claim to work for the company is now increasing at a rate of less than 1% quarter-over-quarter.

Especially with China's hold over rare earth minerals, which are key to making electronics in the 21st century, the trade war is having an impact on not only well-known players such as Dell ($NYSE:DVMT) and Microsoft ($NASDAQ:MSFT) — they were reportedly threatened by China with "dire consequences" recently — but also companies like Arrow. As United States-China relations only grow colder with Trump's latest tariff threat over G20, those looking into electronics companies to buy — stock or parts — will need to carefully comb through the tariff codes, supply chain, and overall exposure to China to see who may lose the most from escalating tensions.

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James Mattone

James is the Associate Editor at Thinknum Media, mainly covering video games, food, and tech news, but not afraid to head into Sephora or beauty brands if need be...

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