How will your business be affected by the trade war?
The trade war with China, agree with it or not, is affecting consumers and businesses alike. If we’re being honest, the US relies on China for the majority of production, and it’s misleading to assume that companies can just divert production to US soil or to other countries without extensive costs and lost production time. The supply chain simply no longer exists for many products in the United States. So, one way or another, the cost from these tariffs has to be absorbed.
In What Ways do The Tariffs Affect Businesses?
In packaging, everything from the cost of materials to logistics is being impacted by the trade war. Just the tariffs themselves are painful for customers when companies are presenting pricing for existing or new packaging designs. In some cases, we try to absorb those costs, but it is not always feasible.
The other issue the trade war poses is unpredictability (of the market, tariffs, pricing, the china dollar etc.), which is making it near impossible to plan anything in the long term. Many businesses find themselves having to make snap decisions and short term fixes due to the uncertainty everyone is facing. They don’t know which materials or products will be affected next, so calculating accurate pricing is a challenge.
How are Businesses Adapting?
From delaying store openings, to implementing hiring freezes to even considering price increases, businesses are scrambling to find ways to mitigate the changes. In packaging, GLS needs to be price sensitive for our customers who are impacted by the imposed tariffs, without sacrificing quality. We excel at making sure we research and classify goods in the most economical way for our customers. Every project is unique and requires a discerning eye to make the best decisions regarding pricing and logistics.
If You Need Help Navigating the Tariffs…
Avoid the risks of going it alone by working with a trusted manufacturer and supplier. With a team of experts (logistics, engineers, designers, QC) and offices in the US and overseas, GLS has you covered.