Monday, January 29, 2018
Tariff News & Impacts….Whirlpool Adds People; LG Raises Price|
President Trump just announced that the U.S. would impose a tariff up to 50% on large residential washing machines. Almost immediately, the news started to emerge.
According to anIndustry Week article, Whirlpool plans to add around 200 jobs in their Ohio facility and announced plans to increase investment. On the other hand, according to theWall Street Journal, LG announced the intention to increase prices and they also plan to open a factory in Tennessee later this year. No matter the exact outcome, trade decisions are changing our landscape significantly.
Trade Decisions Will Impact Your Business
Assuming you are not in the washing machine business, the key question is how will these seemingly unrelated trade decisions impact you and your business? Without a doubt, it will impact you in more ways than you can imagine!
What Should We Consider and/or What Impacts Could Arise?
Thinking about some of the more likely impacts to you and your business from this tariff, let’s start with people. If you manage a manufacturing company in Ohio (near Whirlpool), you might be in fierce competition for people.
Currently, we have many clients struggling mightily to find top talent. Thus, it would be wise to pay attention and get ahead of this curve. If you are in Ohio, perhaps you should look at how to retain top talent, as well. The same holds true in Tennessee – certainly starting a factory will require a ramp up of talent.
Impacts in Addition to human capital
There are vast impacts regardless of your location.
- Do you use the same materials in your manufacturing process?
- Have you checked in with your supply chain lately?
- Will they be geared up to support you or have you ignored them and don’t know what might happen as production ramps up in the U.S.?
- Have you provided a forecast lately?
- How about the impacts on your transportation and logistics infrastructure?
Other Impacts
Pull your team together every so often to think about what is going on in your industry and extended supply chain and what is likely to impact your business.
Be proactive to leverage opportunities instead of chasing your tail.
About APICS
APICS is the leading association for supply chain and operations professionals and the premier provider of research, education and certification programs that elevate end-to-end supply chain excellence, innovation and resilience. APICS Certified in Production and Inventory Management (CPIM) and APICS Certified Supply Chain Professional (CSCP) and the recently introduced APICS Certified in Logistics, Transportation and Distribution (CLTD) designations set the industry standard. The organization includes 37,000+ members and 250+ international partners.
About APICS – Inland Empire
The APICS Inland Empire Chapter (APICS-IE) covers the Inland Empire region of Southern California, which spans the easternmost portion of Los Angeles county and includes San Bernardino and Riverside counties. The chapter offers educational classes, programs and special events in the hotbeds of manufacturing and distribution activity including Ontario, Riverside and Temecula. APICS-IE partners with other organizations supporting manufacturing and distribution such as the DMA (Distribution Management Association), neighboring APICS chapters, industry leaders and government officials in support of furthering the region’s workforce development and growth
Media Contact
Kathleen McEntee | Kathleen McEntee & Associates, Ltd. | p. (760) 262 - 4080 | KMcEntee@KMcEnteeAssoc.com