Three businesses express differing views on the potential impacts of tariff unpredictability
Alright, let's chat, my friend! Now I'm gonna spill the beans on some insider intelligence from U.S. manufacturers who are taking this wild tariff ride to town hard. April 2 looks like it might bring some major announcements about those pesky import duties. But, there's still a ton of uncertainty about what exactly will be said. So, let's see how our buddies in the industry are handling this chaotic situation.
Commercial and Heavy Trucks Components Supplier - TCCI
The Big Boss: Richard Demirjian, president
Products: Electric and belt-driven compressors for the commercial vehicle industry
Size: 700-750 employees, privately owned, annual revenue $100-$150 million
Location: Decatur, Illinois, US and further facilities in China, India, Ireland, and a new Clean Energy Innovation hub in Illinois
Business: Leader or top dog in the market for their category
Supply Market: They focus on small volume sales for clients like Caterpillar, thus requiring USMCA-certified products for government contracts. So, those Mexi and Canuck tariffs are more of a headache than aśé (a Yoruba word meaning 'good luck') for them.
Tariff Take: They're moving electric compressors from China to their Illinois facility because of the tariffs. They're also pumping up their workforce by 25% with cash from the state of Illinois.
Concerns: The turbulent talks between nations have 'em freaking out, man. They just want some concrete guidance because, for this industry, it takes a while to make changes to their supply chain.
Automotive Aftermarket Components Manufacturer - Premium Guard
The Mastermind: Anan Bishara, founder and CEO
Products: Filters, wipers, power steering components, and other auto parts
Size: Founded in 1996, global workforce of over 1,200
Base: Headquarters in Memphis, Tennessee
Manufacturing: 80% produced by contractors around the world, with 20% made in their Mexico facility
Model: They offer complete private-label solutions for retailers and warehouses, with most of their business in private labels (80%)
Tariff Woes: They're dealing with the uncertainty the best way they can, but they need some solid rules because their global supply chain is as diverse as the Star Wars universe.
Tariff Strategy: They're brainstorming various scenarios and trying to adapt accordingly. However, they still can't figure out the specific guidelines, so they're as lost as Indiana Jones without his whip (and they'd rather not end up in a booby trap).
Embroidered Apparel Emblems Daily - World Emblem
The COO: Jim Kozel
Products: Embroidered emblems for the retail and uniform industries
Size: Established over 30 years ago, with 1,200 North American employees, including 850 in Mexico
Locations: Facilities in Hollywood, Florida, multiple plants worldwide, including Norcross, Georgia, Mexico, and Canada
Expansion: Expanded into retail after focusing on the uniform industry, especially industrial laundries. They found a way to reduce lead times significantly with their Mexico facility.
Concerns: They've seen thehem coming, but they're still indignant about that proposed 25% tariff. They pride themselves on their speedy production and efficiency, so this big ol' tax increase would be difficult to absorb and pass on.
Strategy: They're being sensible and looking to automation and AI for the supply chain side of their business. But they won't move large pieces of production away from Mexico right away due to the cost of relocation and logistics.
My Message to D.C.:
Manufacturers want some long-term trade policies, not just fleeting decisions that leave them scratching their heads. They need stability to plan effectively, and clear rules to guide their actions. They want policies that help them stay competitive, not policies that burn bridges with allies and damage consumer passions for American brands.
Now, these words might sound a bit harsh, but remember, my job is to tell it like it is. The current climate is wreaking havoc on these businesses, creating massive uncertainty, and it's time for some change, homeslice. Keep shining!
- Tariffs announced in April might have a significant impact on TCCI, a commercial and heavy trucks components supplier, as they are moving electric compressors from China to their Illinois facility to avoid the tariffs.
- Premium Guard, an automotive aftermarket components manufacturer, is dealing with uncertainty due to tariffs, as they need solid rules because their global supply chain is as diverse as the Star Wars universe.
- World Emblem, an embroidered apparel emblems company, is indignant about the proposed 25% tariff, as they pride themselves on their speedy production and efficiency, and this tariff increase would be difficult to absorb and pass on.
- Manufacturers, like Richard Demirjian of TCCI, Anan Bishara of Premium Guard, and Jim Kozel of World Emblem, are seeking long-term trade policies with stability and clear rules to help them stay competitive and avoid creating instability in the industry.
