Navigating Manufacturing Amid Tariffs: Webinar Summary

Navigating Manufacturing Amid Tariffs: Webinar Summary

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Business bigwigs crave certainty to orchestrate long-term plans, but numerous polls show they're not fond of President Donald Trump's up-and-down tariff tactics because they bring chaos. Yet, as manufacturers well know, certainty is usually an illusion. Leaders need to manage what they can control. A panel of experts shared these insights during a webinar hosted by Foundry Management & Technology, New Equipment Digest, Plant Services, Smart Industry, American Machinist, and Material Handling & Logistics on May 7.

If you missed the enlightening discussion, you can catch the on-demand replay anytime via this link. Joining Rebecca Homkes, a lecturer at the London Business School Executive Education and author of Survive, Reset, Thrive: Leading Breakthrough Growth Strategy in Volatile Times, were Chuck Orzechowski, CEO of the Chief Operating Officer Business Forum (COO Forum), and Chris Azur, president of Warwood Tool, a West Virginia manufacturer of industrial hand tools like hammers and axes.

Over the hour-long session, the panelists tackled topics like communication strategies, planning options, inventory management, and team motivation. Here are some key takeaways:

Stop Planning, Start PreparingAccording to Homkes, the market moves too swiftly for long-term plans to survive. Instead, businesses should pick their direction and prepare for potential outcomes. "You can't plan for tariffs because we're going to change, but you can prepare for them," Homkes said. Leaders should make decisions based on their beliefs, not waiting for hard facts, as these often change too fast to provide valuable insight. Stating these beliefs openly gives everyone on the team a sense of expectations and a responsibility to adjust if the numbers vary.

Talk to Everyone in Your OrganizationOrzechowski mentioned that leaders should seek insights beyond news sites, economic reports, and social media. Engaging with diverse voices within the organization—different political views, backgrounds, and socioeconomic statuses—can uncover unconventional yet valuable insights. Speaking to front-line workers can help identify supply chain changes that could signal suppliers cutting corners.

Work with Your VendorsAzur, who is optimistic about tariffs because his company gets most of its raw materials from U.S-based suppliers, advised working with new vendors. The current market conditions, he explained, have opened up opportunities for domestic companies looking to expand. Companies that relied on imported raw materials are now seeking U.S-based options, andת warwood took advantage of this by negotiating a deal with a major vendor to buy 12 months' worth of raw materials in advance and hold them for six months without charging warwood. This arrangement provides great payment terms that enable warwood to plan for potential cost increases effectively.

The May 7 webinar was the first of four tariff-related events planned by the parent company's Manufacturing Group. The next webinar, to be held on June 8, will delve into the costs of reshoring manufacturing to the U.S. We'll be discussing how quickly companies can build new capacity, and how costly these efforts will likely be with site selection professionals, machine tool market experts, and construction engineers.

1. Despite the unpredictability of President Trump's tariff tactics, business leaders must manage what they can control, as noted during a webinar hosted by various industry publications.
2. In contrast to extensive planning, Rebecca Homkes, a business lecturer, emphasized the importance of preparing for potential outcomes instead, even when dealing with uncertainties like tariffs.
3. Beyond news sites and economic reports, Chuck Orzechowski, CEO of COO Forum, suggested that leaders should engage with diverse voices within their organization to uncover insightful perspectives.
4. Chris Azur, president of Warwood Tool, is optimistic about tariffs and advised working with new vendors, citing current market conditions as creating opportunities for domestic companies to expand.
5. Future webinars planned by the Manufacturing Group will delve into the costs and timeline of reshoring manufacturing to the U.S., providing valuable insights for investors and business owners interested in personal finance and the manufacturing industry.

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