Tariffs, Tension, and Opportunity: The Importance of U.S.-Based Manufacturing
Mitigating Economic and Geopolitical Uncertainty with a U.S.-Based Supply Chain
If we’ve learned anything over these last few months, it's that global trade conditions can change quickly.
Despite the recent US-China trade agreement that slashed reciprocal tariffs by 115% for a 90-day period, the future of U.S tariffs remains uncertain. The fact is, regardless of where tariffs land in the short term, this recent tariff debacle has been a wake-up call for manufacturers in the United States whose supply chains extend beyond our borders. This tariff surge has raised a lot of questions regarding decentralized global supply chains and the need for reshoring, highlighting the volatile potential that one policy change can have on our economy as well as our relationship with the global economy at large.
In the face of this uncertainty, some companies are looking for quick fixes- “band-aid” solutions to minimize short-term impact. But setting yourself up for long-term success may require a full-on “supply-chain transplant”. Investing in a U.S.-based supply chain is a real long-term solution for riding out these global fluctuations, providing greater stability, security, and control in volatile global landscapes.
Although the benefits may take time to fully manifest, reshoring initiatives allow companies to localize their sourcing and production, gaining protection from external factors like tariffs and international supply chain disruptions while reducing lead times and increasing go-to-market speeds. For OEMs who rely on die-cut components to keep final assemblies on schedule, this is especially true. OEMs that invest in a domestic-based die-cutting and converting partner like JBC Technologies are better positioned for resilience, speed, and long-term growth in the future, no matter what regulations are imposed outside of our borders.
| Interested in learning more about how JBC Technologies can optimize your supply chain? Check out this case study highlighting how JBC solved one customer's supply chain challenges! |
The Cost of Global Dependency
Facing higher input costs, reduced export opportunities, and dips in the labor force, manufacturers have felt the effects of the recent reciprocal tariffs. These effects are not only felt by the manufacturer, however. Consumers saw a price increase of roughly 2.3% in the short run, equating to a loss of about $3,800 on average per household in purchasing power, with households at the bottom of the income ladder feeling the brunt of the effects.
What Does This Mean for OEMs?
OEMs feel the heat, too:
Even small, inexpensive parts—like die-cut thermal pads, gaskets, or EMI shields—can hold up an entire assembly if they’re late or incorrect. In highly integrated OEM production environments, one delayed part equals a delayed product. Working with a domestic die-cutting partner like JBC Technologies isn't just a hedge against global risk—it's a competitive advantage. Our North American footprint ensures speed, stability, and design support when it matters most.
|
Check out this E-Guide for a more in-depth look at solving supply chain challenges with a converting partner! |
Long-Term Success: More Than Just Avoiding Short-Term Disruptions
Amidst policy changes, shifts in tariffs, and ongoing trade wars, working with manufacturing partners close to home is a viable long-term solution. Manufacturers, importers, and private label sellers must see this recent tariff spike not just as a threat, but as an opportunity to rethink their supply chain, setting it up for future success.
Economic Resilience
Domestic suppliers aren’t subject to the same volatility as international suppliers. Policy changes, global conflict, interrupted supply chain lines, and a myriad of other factors affect international supply chains, causing delays, shortages, and price hikes. Relying solely on these international supply chains without domestic resources is risky. Integrating more U.S.-based supply chain operations is an important way to mitigate risk in ever-changing global landscapes.
Tariff Impacts
As we’ve seen in recent months, policy changes can have rapid and widespread effects on import/export economics. Getting blindsided by a spike in retaliatory tariffs can turn things upside down for both you and your consumers. During times of uncertainty, turning to domestic production helps protect your operations and margins.
Cost Predictability
Although domestic production comes with a higher price tag initially, these prices are much more stable over time, helping reduce your exposure to international market swings and improving long-term planning abilities.
Go-to-Market Speed
Localized manufacturing means shorter lead times, faster shipping, and better communication, allowing you to respond quickly to the market and accelerate new product launches. In industries where engineering speed and adaptability matter, like aerospace, medical, and battery storage, a responsive supply chain is invaluable.
Rethink Your Supply Chain with JBC Technologies
Although the effects may not be immediate, restructuring your supply chain to integrate domestic production is not only beneficial but necessary. In this age of rapid policy changes and economic uncertainty, a U.S.-based converting partner you can rely on is invaluable…
|
JBC Technologies is an ISO 9001-certified full-service die-cutter and flexible materials converter committed to providing engineered solutions to the medical, aerospace, industrial, and BESS industries. Founded on the pillars of supply chain optimization, engineering innovation, and manufacturing excellence, JBC is committed to helping provide innovative die-cut solutions to a wide range of challenges. With four locations across the United States, JBC leverages relationships with leading domestic materials suppliers to improve your go-to-market speeds, automation initiatives, as well as post-processing and handling needs. |
Contact Us today