The right ERP solutions can show you a clear path to your goal.
Tariffs are more than just political talking points—they can have a direct and often painful impact on manufacturing. Rising costs, supply chain disruptions, and uncertain trade policies are forcing manufacturers to make tough decisions that could determine their future. Businesses that fail to adapt to these developments risk losing their competitive edge, while those that take proactive steps can turn these challenges into opportunities. The stakes are high, and manufacturers must rethink their strategies to stay profitable in this shifting landscape.
One of the best examples of this came up during my weekly men's hockey game. Between shifts, I was chatting with one of my teammates, who happens to be a plant manager. He told me his company is scrambling to find alternative sources of supply for a variety of materials including aluminum, steel, an elastomer—both domestically and internationally—to navigate the cost increases caused by tariffs. They’re looking at local suppliers to reduce exposure to international trade policies while also exploring new partnerships abroad that could help them avoid tariffs altogether.
This approach is something we’re seeing across the manufacturing industry. Companies are analyzing their supply chains and making strategic decisions to mitigate risk. Some are shifting production to countries that have more favorable trade agreements, while others are doubling down on automation to offset rising costs. Larger manufacturers with more resources are even acquiring suppliers to gain better control over their costs.
ERP software plays a crucial role in helping manufacturers navigate tariffs. With advanced supply chain management tools, companies can analyze supplier costs, evaluate alternative sourcing options, and optimize procurement strategies to minimize tariff impacts. ERP systems also give users improved visibility into real-time costs, allowing manufacturers to make data-driven decisions that protect margins while staying competitive. Automation features further help enhance productivity by streamlining operations, reducing waste, and driving overall efficiency.
But even with these efforts, tariffs still have a major impact. Higher costs for raw materials and components can lead to increased prices for finished goods, which could make products less competitive in the market. Some companies absorb the costs to stay competitive, but that also means cutting margins—which isn’t sustainable long-term. Others pass the costs on to customers, which can reduce demand. And in some cases, companies are forced to cut jobs or delay investments to stay afloat.
Governments aren’t blind to these challenges, and many are stepping in with programs to help manufacturers adapt. Some provide tax credits or subsidies to offset tariff-related expenses. Others negotiate new trade deals to reduce tariff burdens. There are also initiatives that encourage domestic production through grants and incentives, helping companies build a more resilient supply chain.
For manufacturers, navigating tariffs isn’t just about cutting costs—it’s about long-term strategy. The companies that succeed are the ones thinking ahead, diversifying their supply chains, and investing in technologies that make them more efficient. As my hockey teammate said, “You can’t just react. You have to be proactive, or you’ll be left behind.”
Manufacturing is always evolving, and tariffs are just another challenge to overcome. The key is staying flexible, making smart investments, and adapting to the ever-changing nature of global trade. Both on and off the ice, the teams with a solid game plan are set up for success.
This article contains Epicor’s views regarding tariffs. You should contact your counsel for application of any tariffs to your business and their potential impact. Nothing in this article is a representation or warranty of any kind. Epicor does not undertake to update this article. All Epicor Products and services are furnished subject to Epicor’s standard Customer Agreements.
