Tariffs. These import/export taxes have been in the news a lot lately, especially those that have been imposed on China by the U.S.
Since they went into effect, approximately $250 billion of Chinese exports have become more expensive for Americans — from leather belts to refrigerators to motorcycles, according to CNN Business.
While they were imposed to punish the country for intellectual property theft and to create more U.S. jobs, these tariffs have had an immediate effect on U.S. manufacturers that rely on Chinese manufacturers as part of their supply chain.
While some firms are sticking with their Chinese suppliers, many are now looking for another, more cost-effective solution.
According to a recent article in Barron’s, “After years of designing global supply chains based on the cheapest labor, transportation, and raw materials, U.S. companies have spent the last six months scrambling to account for the new tariffs and a potential broader trade war, with no ready answers or easy approaches.”
Of course, the solution is right under their noses – U.S. manufacturers.
Companies like ER Wagner have extensive experience providing quality, cost-effective solutions for global manufacturers in the transportation, material handling, food service, defense and marine industries.
For example, with our state-of-the-art 157,000-square-foot manufacturing facility 15 miles outside of Milwaukee, WI. and a hinge production facility in Brookfield, IL, we can easily be incorporated into any supply chain, while adding value to your products and allowing you to remain globally competitive.
So, maybe it’s a good thing that these companies are searching for new suppliers – it never hurts to see what’s there and it’s a good reminder that U.S. manufacturers, like ER Wagner, can provide benefits and advantages way beyond price point.