Tariffs Don’t Deliver
Unless you like being beat up?
When I was consulting with Ingersoll Engineers, I would handle the materials and supply side of the projects. Much of my time was spent looking at systems, warehousing, inventory, and purchasing. The cost sits in those areas. Depending on the throughput within the factory, you could streamline much of the other factors with systems, etc.
Some of the questions coming to mind was the relationships with suppliers. Could you work with them on lead times? How secure was your demand and how flexible was manufacturing. Could CNCs keep up with the demand and what if there was a surge, could you turn on other and maybe slower sources. That is machine tool. Similar analysis could be considered for pharma, hospital supplies, food products. Know your environment. I work in all of those scenarios and globally at times.
Labor, typically is not that issue. It makes for a good scape goat though. One example and then I will turn this lose. I was working at the old Parker Hannifin facility in Des Plaines. They were going to close it down and move manufacturing to another facility. I had spent a lot of time getting the scheduling correct and it did improve greatly using MRP sans a Master Schedule. We shipped parts to various branch plants for assembly. We were still flying blind with the eight assembly facilities. I did find a Distribution report broken down by plant with inventory by part and demand. Took the planners aside and showed them how to use for planning production. All the elements were there including weekly demand. They planned distribution and scheduled the production.
It would not hurt if we went back and looked at how we do our planning and sourcing. Know your process. Manufacturing will thrive if we look at the process.
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Tariffs may serve as one tool in a broader strategy, but they cannot substitute for the fundamental rebuilding needed after decades of offshoring, according to Cassandra Turgman, co-founder and executive vice president of operations at Live Solutions. Kevin Dietsch
We were told that tariffs would be a game changer for US manufacturers, but the results have yet to meet expectations.
“US Tariffs Don’t Deliver Promised Manufacturing Revival,” Plastics Today
A clear-headed, insightful opinion piece from Cassandra Turgman of manufacturing consultancy Live Solutions poses the question many of us are asking: One year on, have tariffs been the game changer for US manufacturing that was promised? Spoiler alert: The president doesn’t get a passing grade.
She makes her case in three bullet points:
- Manufacturing employment has declined since the tariff policies took effect in spring 2025, and production capacity at manufacturing plants has dropped to historic lows.
- The trade deficit in manufactured goods has increased considerably. “While earlier steel and aluminum tariffs during Trump’s first term did produce a small increase in American metal production, the downstream effects on industries requiring these components, such as automotive manufacturing, outweighed the gains for domestic steel and aluminum producers.”
- Since tariffs are, indeed, taxes on imported goods, they have contributed to higher prices and increased inflation domestically.
Deeply rooted disadvantages
Trade policy, Turgman notes, is only one facet of the challenges facing US manufacturers. Decades of offshoring have left a string of fundamental structural disadvantages that can’t be remedied in a short-term burst of activity.
She also points out that the high cost of labor in the United States vis-à-vis Mexico, for example, creates almost insurmountable competitive pressure, while the domestic shortage of skilled labor further puts US manufacturers at a disadvantage.
All is not lost, however, and Turgman outlines a roadmap for building a sustainable manufacturing future in her blog post.
Beyond tariffs
Turgman writes: “One year into renewed tariff policies, it is evident that tariffs alone will not resurrect American manufacturing. The path forward requires integrated strategy across five dimensions.” They are:
- Make workforce development a national priority by expanding trade school capacity and access and partnering with manufacturers to develop relevant curricula.
- Support and expand government incentives that are funded consistently across election cycles.
- Create accessible pathways to AI adoption in manufacturing, and not just more AI development.
- Accelerate infrastructure upgrades.
- Diversify US manufacturing and reduce over-reliance on foreign production.
Turgman: “Tariffs may serve as one tool in a broader strategy, but they cannot substitute for the fundamental rebuilding that decades of offshoring made necessary. The work ahead demands patience, substantial investment, and a clear-eyed assessment of what drives manufacturing competitiveness in the modern global economy.”
Cassandra Turgman is co-founder and executive vice president of operations at Live Solutions, a consultancy based in Pasadena, CA, providing expertise in manufacturing operations and engineering optimization. You can read her full post on the Live Solutions website.