Three Companies Respond Differently to Unpredictable Tariff Situations
Rewritten Article:
Yo, what's up peeps? The last two months have been a wild ride, thanks to a flurry of executive orders, trade announcements, and, well, let's call them changes of direction, related to tariffs on U.S. imports. Now, we want to check in and see how you're doing.
April 2nd seems to be a key date for some major announcements about reciprocal tariffs and 25% tariffs on goods from Mexico and Canada. But remember, even the exact details of what will happen on that day are shaky.
In these testing times, we reached out to several American manufacturers to get a sense of their plans for the weeks and months ahead and whether they're shaking things up or holding tight until things clear up. Here's what they had to say:
Electric and Belt-driven Compressor Manufacturer: TCCI
CEO: Richard Demirjian
Product: Compressors for commercial vehicles
Employees: 700-750 (privately owned)
Annual Revenue: $100–$150 million
Location: Decatur, Illinois (HQ), facilities in U.S., China, India, Ireland, and a new Clean Energy Innovation hub in Illinois
TCCI is a market leader in many compressor categories, outranking giants like Denso and Valeo, who often shy away from small-volume deals.
Take on tariffs: One major concern for TCCI is the ongoing instability of trade talks. The company builds products with more automation than their Chinese facility, which sets them apart from competitors. However, changing the supply base due to unclear tariffs is challenging as it requires significant time and investment.
Automotive Aftermarket Components Manufacturer: Premium Guard
CEO: Anan Bishara
Product: Filters, wipers, power steering components, and other automotive parts
Employees: Over 1,200 globally
Location: Memphis, Tennessee (HQ), factory in Mexico
80% of Premium Guard's production is made according to their specifications by manufacturing contractors around the world. This strategy ensures the company's resilience against geopolitical conflict and weather-related issues.
Tariff Concerns: The uncertainty around tariffs is Premium Guard's biggest fear. The constant changes are causing concerns, making it difficult for the company to make strategic decisions and adjustments on time.
Embroidered Apparel Emblems Manufacturer: World Emblem
Chief Operating Officer: Jim Kozel
Product: Embroidered emblems for retail apparel and uniform industry
Employees: 1,200 North America
Locations: Nine plants around the world, including the U.S., Mexico, and Canada
World Emblem focuses on speed of market and speed of delivery, as modern businesses run on quick turnarounds. This is why the company has expanded in Mexico, where it employs 850 people.
Tariff Concerns: World Emblem is particularly vulnerable to 25% tariffs on goods coming from Mexico since its primary customer base is the U.S. and Canada. The company is concerned that the speed to market may not be enough to justify the increased cost brought on by tariffs.
In the end, all three manufacturers are looking for clarity and long-term policies to guide their supply chain decisions. They want a consistent direction so they can plan effectively and align their investments with trade policies.
Small businesses are the heart of our economy, and tariffs could have a significant impact on them. It's essential to understand their concerns and responses to make informed decisions moving forward. Stay tuned for further updates in this space!
- In the face of ongoing instability due to tariffs, TCCI, a major compressor manufacturer, is concerned about changing their supply base, as it requires significant time and investment.
- Premium Guard, an automotive aftermarket components manufacturer, is fearful of the continuing uncertainty surrounding tariffs, making it difficult for them to make timely strategic decisions and adjustments.
- World Emblem, an embroidered apparel emblems manufacturer, is particularly concerned about potential 25% tariffs on goods from Mexico, as their primary customer base is in the U.S. and Canada, and the speed to market may not justify the increased cost.
- All three manufacturers are seeking clarity and long-term policies to guide their supply chain decisions, so they can plan effectively and align their investments with trade policies.
