But then I thought a bit deeper.
Any small company that relies on profits from the last batch to fund the next batch will certainly just be killed or need to acquire debt to fund purchasing of parts/stock under new tariffs. That really sucks for small manufacturers.
I feel lucky that the tariffs were announced at a a time where we were preparing to order new inventory. Otherwise the cash flow effects would be ruinous. Unfortunately we primarily export and there is a real chance we move our manufacturing out of the US as a result of this mess.
This is what a lot of people aren't understanding. If the tariff is added by the first middleman, each additional middleman between that first one and the customer is adding their increase to that existing increase and the base price, not just the original base price.
And, since this is all really just chaos without a plan, what happens when replacement suppliers don't spring up all over the USA?
I can tell you, up close and personal, that the COVID era already was pretty f.cking nasty for all manufacturers with costs booming thanks to supply chain issues.
Trumps tariffs bullshit is the COVID era on steroids. Seriously. Just wait and see.
You end up with a high cost per unit, and a bad yield at that. And trust me, when one capacitor value is misplaced causing intermittent failure, because a worker had to tape additional parts on a reel and didn't know that "look the same != is the same", you can easily sink in 40-50 hours trying to figure out what the hell is wrong with the 5 units that are failing ask me how I know I have many many examples lol
But one thing we learned from COVID is the market is dumb and over-optimizes for a small number of factors, so there won't be any significant adjustment in supply chains or redistribution of capability without drastic government corrective action.
> WASHINGTON, March 7 (Reuters) - U.S. Treasury Secretary Scott Bessent said on Friday that the U.S. economy may slow as it transitions away from public spending towards more private spending, calling it a "detox period" needed to reach a more sustainable equilibrium.
jmclnx•16h ago
tekla•16h ago
nkrisc•16h ago
going_north•16h ago
InsideOutSanta•15h ago
Suppafly•14h ago
I didn't read that article and I was able to deduce that, not really sure how the guy you're replying to claims to have went to the site and still can't figure it out.