Originally Posted by
Barrettscv
This is an excellent summery of the situation. My company uses imported bearing steel, which is no longer made by anyone in the United States. Imported "bar stock" steel was hit with a 25% tariff this summer. The steel contributes 30% to the cost of the finished product. This created an instant 7% price increase on product coming out of our factory in Indiana. We also import nearly identical products from Japan. Finished product from Japan was not effected. Imported Japanese product did not get the same price bump, but prices will go up.
Well, here is another summary. My company has a product built in China, shipped here and sold here. With the 25% we are no longer competitive cost wise and my company is thinking of moving the production of that machine back to the U.S. or to the home base facility in Europe. No decision yet, but if they move it back to the U.S. because of the 25%, that means more jobs in our facility. So, it works both ways. Right now, we are busting at the seams. Our problem is finding sheet metal vendors that can make our parts. All of our Vendors are slammed with work which translates to at least a 12 week lead time on just getting sheet metal parts.
john