How to Reduce Import Reliance in US Export Industries

"Your iPhone might cost $300 more next year." Heard during JP Morgan's investor webinar I attended today. Their Chairman of Market Strategy wasn't sugar coating anything: We're facing the biggest tariff spike since 1910. Supply chains imploding. Possible recession. But while hundreds of investors are losing their minds... There's also a massive opportunity that most are ignoring. (And no, I'm not talking about "buying the dip") Here's my summary of the call: THE RISKS 1. We're looking at the highest tariffs since 1910. That's not a typo. And last time companies faced tariffs like this... They just passed those costs straight to customers. 2. Other countries are probably not gonna just sit there and take it. They might hit back at our tech and financial services... Where we actually make good money. 3. The stock market could get ROCKED even further. And despite what some fancy advisors say about "only the rich own stocks"... 62% of American households have market exposure. So yeah... that matters. 4. Supply chain costs could explode since half our imports are parts for making other stuff. BUT... (and this is important)... Every crisis creates opportunity. THE OPPORTUNITIES: 1. "Made in America" could become the golden ticket When foreign products get expensive... American manufacturers get competitive. 2. Near-shoring becomes the move Mexico and Canada are exempt from these tariffs. Think about THAT for a minute... 3. Local supply chains will strengthen Less overseas reliance = more domestic suppliers needed. 4. Innovation gets forced. When you can't compete on price... You gotta get creative. MY RECS: Audit Your Supply Chain • Map EVERYTHING • Calculate tariff exposure • Find domestic alternatives • Start negotiations early Look for Strategic Partnerships • Find domestic manufacturers • Partner with logistics companies • Join forces with complementary businesses Turn This Into Marketing Gold • Highlight "Made in America" status • Show how you're creating American jobs • Build community around local business Chase Government Incentives (There's gonna be more money available for domestic production.) Consider Vertical Integration Maybe it's time to own more of your supply chain... HOW THIS MIGHT PLAY OUT: Best Case: Countries negotiate deals, tariffs get rolled back, but domestic manufacturing gets stronger anyway. Middle Case: Extended uncertainty while everything gets figured out. Smart companies adapt and thrive. Worst Case: Full trade war triggers recession... but remember: • Markets usually recover way BEFORE the economy • The biggest opportunities come during chaos • Being early > being right THE BOTTOM LINE: Yes, these tariffs are a massive economic experiment. Yes, there are serious risks. But sitting around crying about it won't help. The founders who win will be the ones who: - Face reality - Move FAST - Position for multiple scenarios - Build stronger domestic ops Do it.

Unpopular Opinion: We Have an Import Addiction! "Liberation Day" or whatever you want to call yesterday Is making us all panic and focus on the wrong things. News stories with fear-inducing headlines: "Sweeping Tariffs Debilitating Stocks!" "Tariff Wars & Instability Intensify!" "What You Need to Know Now!" "Everything Will Cost More!" I spent a good two hours this morning, Searching for and analyzing data on goods From companies and countries, we trade with. My biggest takeaway from all the data was bleak. We don't have a #tariffs problem (despite the new ones). We have a problem with how our trade policy works. We have a problem of importing much more than What we export to 80% of our trade partners. Our imports are 48% higher than exports. We are being charged heavy tariffs by Developing countries for our goods. Now, that's not a problem by itself. It is a common phenomenon. The problem lies at the core: Demand elasticity of goods. Our imports fall into three major categories: 1. Critical goods with inelastic demand. --> Tariff increases will not reduce demand. --> Prices increase; suppliers don't lose much. --> Tariffs on many of these products unchanged. --> Fairly urgent need to find domestic producers. 2. Regular goods with normal elastic demand. --> Tariff increases will affect demand of these. --> Suppliers and buyers both need to negotiate. --> Cost differences may end up splitting equitably. --> Many export & import exchanges will occur here. 3. Non-essential goods with highly elastic demand. --> Tariff increases are hitting these goods the hardest. --> Suppliers stand to lose a lot more than consumers do. --> Quantity demanded of these goods will drop significantly. --> Key aspect of our import addiction comes from these goods. Actionable Insights: 1) Domestic producers should focus on the inelastic items. 2) Products: 9/10 imports are also our top export items. 3) Exporters from the USA: recalculate the real costs. 4) Importers in the USA: renegotiate the contracts. 5) Short term discomfort is almost guaranteed. 6) Give up the reliance on "cheap" imports! Follow Dr. Kruti Lehenbauer & Analytics TX, LLC for #PostitStatistics #PostitSaveit #Economics #DataScience Insights to grow and manage SMBs and your career!

Navigating Tariff Increases: Key Advice for US Manufacturers 📈 With the incoming Trump administration's proposed tariffs—25% on products from Canada and Mexico, and 10% on goods from China—manufacturers are facing rising costs and potential disruptions. Experts share strategies for managing these challenges: Prepare for Supply Chain Disruptions 🚚: Anticipate increased risks and shifting trade policies. Focus on contingency planning and diversifying suppliers. Optimize Demand Forecasts 📊: Work with commercial teams to refine short- and long-term forecasts by region. Invest in Digital Technologies 🤖: Leverage AI and digital twin technologies for better decision-making in supply chain, plant, and product design. Consider Reshoring 🏭: Engage finance teams and partners to explore relocating operations to the U.S. to mitigate tariff impact. Manufacturing system integrator Wes-Tech Automation Solutions highlights its role in supporting reshoring and improving operational efficiency through risk assessments, process optimization, and automation design. As Harry Moser from the Reshoring Initiative notes, while overseas parts may seem cheaper, considering the Total Cost of Ownership (TCO)—including freight, inventory, and geopolitical risks—can reveal that reshoring is a profitable option for many manufacturers. 💡 This article provides valuable insights into the impact of tariffs and the shift toward reshoring, particularly relevant for system integrators, OEM's and end-users. Let’s stay informed and proactive in navigating these changes! #Automation #DigitalTransformation #IndustrialAutomation #EngineeringServices #Industry4.0 #ManufacturingExcellence