Few manufacturing organizations remain untouched by the current tariff landscape. Some assessments suggest manufacturing as a whole faces the highest risk exposure to tariffs, with a recent report by the JPMorganChase Institute specifying that mid-sized businesses may feel the most significant tariff impacts.
With so much at stake, many business and supply chain leaders are doing one of two things:
- Trying to stay abreast of every little change in the continuously evolving global trade picture. Although usually an admirable goal, the sheer pace and scope of change right now make this resource-intensive option unlikely to yield many strategic benefits.
- Taking a wait-and-see attitude. This may seem like a safe route, but think again. The choice not to act is still a choice, so it should only be made after careful analysis. In the present situation, the proverbial dust probably won’t settle for a very long time — leaving organizations vulnerable in the meantime. If the decision not to act is based on inertia rather than strategic analysis, then it may carry significant long-term financial and operational risks.
There is, however, a third option that organizations can pursue: seize the opportunity to rethink the global supply chain.
