In light of the recent U.S. presidential election, many companies are looking to take proactive measures to plan for anticipated import tariff increases. President-elect Trump suggested he would impose tariffs of 60-100% on some China-produced goods imported to the U.S., and he favors a 20% universal tariff for all other countries.
The higher costs associated with these tariffs are certainly challenging. The question is: What is the best course of action for your business?
Numerous supply chain strategies should be at the top of your list for consideration. Could your company potentially find a more local supplier for goods traditionally imported from China or elsewhere? Would it make sense for you to go vertical, to produce the materials your company needs by building your own facility or purchasing a key domestic supplier?
While the trend of reshoring/near-shoring has been growing over the past several years, we expect these tariffs to spur even more activity. Of course, domestic production brings challenges of its own. For example, the U.S. manufacturing sector’s unemployment rate stands at a low 3.6% (as of October 2024). You may need to explore automation for some processes, as properly staffing your new facility could be extremely difficult.
I encourage you to reach out so we can discuss your options and develop a strategic plan that suits your needs. Our team is uniquely positioned to help your company ensure profitable growth, despite geopolitical uncertainties.
Develop a Playbook, Prioritize, and Execute
ChemQuest’s experts work together with your team to develop scenario planning that supports the agility and flexibility needed to be proactive in uncertain times. But we don’t stop there. We truly partner with you to develop a customized playbook, prioritize the initiatives that make the most sense for you according to the circumstances, and then execute efficiently and effectively.
Toward that end, our cross-functional team members collaborate across four service pillars to address your company’s needs in:
- Business Strategy & Transformation
- Operational Excellence
- Technology Development
- M&A Advisory Services
With former leaders from major manufacturers, business owners, and senior technical managers, including Ph.D. scientists, our team draws on not only their diverse knowledge base and experience but on their vast, pooled network of connections and resources to help you achieve your end-to-end business goals.
How can we help you? Let’s start talking: https://chemquest.com/lets-start-talking/
