How Tariff Costs Can Impact Your Business

The introduction of new tariffs on imports has left many businesses scrambling to find alternatives. With a 25% tax increase on imported goods, these new tariffs can have a wide-ranging negative impact on your day-to-day business. Tariffs are just another issue on top of the many problems that importing circuit boards for your products can create. If your business depends on boards targeted by these increases, you may be casting about for a solution.

One option you might consider is changing your sourcing to contract manufacturers outside of China, including those in the USA. While this may appear to be an attractive option, it comes part and parcel with its own host of issues. You could choose a larger-scale contractor to provide you with your boards, but you can rest assured that they’ll raise their prices in response to the new increase in demand. You might think that sourcing your boards from a range of smaller-scale manufacturers could be the answer. Without years of experience dealing with this level of demand, though, you may find them becoming unreliable. Your assemblies may arrive later and later, if at all.

At Manncorp, we understand how these tariffs can affect a razor-thin profit margin. This is why they represent a chance to refocus your business and take control of your production. This could be the perfect opportunity to bring your SMT production in-house and allow your business to grow.

In-house Production as a Tariff Solution

In-house production allows a company to exert a greater degree of control over the production process, cutting down on the number of quality control issues you might face. If you’re looking to reassure your customer with guarantees, you want to be sure you’re using boards that you’re actually willing to stand behind. An in-house assembly line can handle full-scale production runs, while also allowing you a quicker turnaround on prototyping. Using in-house production also offers you the ability to handle short-run production demands.

From that angle, this new 25% increase on import costs isn't truly a problem. Instead, it's an opportunity to take your business’s production into your own hands. Over the next several weeks, we’ll be discussing how to make the most of this new opportunity on our blog. Next week, learn how a Section 179 deduction can save you money on your taxes this year. For an in-depth consultation on what it will take to bring your SMT production and PCB assembly onshore, send your bill of materials to Chris Ellis (