Tariffs Will Encourage Innovation
When I drive into the office in the morning, I usually listen to one of the business channels on the radio, and all I hear now are discussions about tariffs. How will they be introduced, and what products or countries will they affect? What industries will be affected, and how will they affect inflation?
One guest made the most sense about how tariffs affect businesses. Their answer was more innovation. Companies and countries will not just keep doing business as usual; they will innovate and change in reaction. The glass industry has been dealing with tariffs for years, mainly on glass and aluminum imports, and innovation is how we have dealt with them.
Many manufacturers have changed their buying habits, searching for products from alternate manufacturers and countries. This has strengthened some domestic businesses. I know there was a lot of concern when shower products were targeted a few years ago. It seemed tariffs were going up every few years. Tariffs have always been used as a tool for many reasons. Suppliers adjusted, and the industry stayed strong.
As I wrote a few months ago, adapting and innovating were key strategies to surviving the pandemic and growing our businesses. It’s even more important to continue innovating and adapting to our changing economy. Nobody seems to agree on what the future will bring, but companies that stay agile will likely succeed and grow no matter what happens to the economy.
It is important to review the companies you are doing business with and ensure they are looking to change and innovate their businesses to keep up with market changes and keep you supplied and competitive in your marketplace. Using more domestic suppliers will isolate you from import tariffs. We are at the end of the year, and this is a good time to review your business and ask, “What can we do differently?”
Successful companies are innovative, quick to adapt to economic changes and provide something of value. This is not the time to keep doing business as usual. Companies that can be agile in their actions and relevant to customers’ needs will likely have the best business performance in any economy, tariffs or not.
I also want to take the time to thank you for all the support you have given me this year. I wish you and your families a safe and happy holiday season. My granddaughter will be visiting for the holidays. It will be her first trip to the West Coast, and she can’t wait.