Tariffs making us think strategically

BY STEVEN KASZAB

Never just a news item, tariffs have become a reality and their messing with timelines, budgets and business strategies across many business sectors. Tariffs are hitting materials many of us require, such as: aluminum, LED components, flooring, and graphics. Many sourced globally we face extra work, mounting costs and expenditures. The cost of this, or that can jump 25-50% overnight and never has this been placed into a business plan. Never.  What is being seen today?

• Surprise price jumps mid-production
• Vendors juggling between eating costs or passing them onto customers
• More brands are shifting towards US based sourcing
• A rising interest in customized long-term projects (cost control over time)
• Forcing manufacturers to re-engineer and use different materials to keep control of costs
• Forced to research and always stay in the information loop

How to manage?

• We use the exchange rate as a monitor to pay the tariffs while maintaining our markups
• Source domestic supply if possible; stay away from tariffs completely
• If you can, diversify your product/service offerings
• Plan, plan and plan some more; know everything you can about your items, their costs and make

If you’re traveling down south: know what is in your vehicle and where it was made. Full documentation is required. You buy your allotted duty-free items (say $800.00) be prepared to be hit with extra costs at the border in return. Tariffs apply to most goods and items. It’s a money grab plain and simple.