You Can't Forecast the Future, But You Can Prepare for It: Dealing with Volatile Tariffs and Market Changes
Navigating Business in Tariff Times: Webinar Summary
In the ever-changing business landscape, leaders want certainty to plan for the long term, but dozens of polls show that's a pipe dream, especially with President Donald Trump's unpredictable trade policies. But what these leaders should focus on instead are the things they can control, as a panel of experts revealed during a webinar hosted by various leading industry publications, including Foundry Management & Technology, New Equipment Digest, Plant Services, Smart Industry, American Machinist, and Material Handling & Logistics.
"No leader has run their business through certain times," said Rebecca Homkes, a lecturer at the London Business School Executive Education and author of Survive, Reset, Thrive: Leading Breakthrough Growth Strategy in Volatile Times. "We're in an industry that's always had a period of change."
Webinar Recap (Missed it? Watch the replay now!)
If you didn't catch the May 7 webinar, you can still catch up on it by watching the on-demand replay. Joining Homkes on the panel were Chuck Orzechowski, CEO of the Chief Operating Officer Business Forum (COO Forum), and Chris Azur, president of Warwood Tool, a West Virginia manufacturer of industrial hand tools. Panelists discussed communication strategies, planning options, inventory management, and team motivation.
Here are a few key pieces of advice that emerged:
Stop Planning, Start Preparing
The market is changing too quickly for longer-term plans to survive the moment. However, company leaders can decide on a direction and prepare for different outcomes. As Homkes puts it, "You can't plan for tariffs, but you can prepare for them."
The secret is to make decisions based on personal beliefs, rather than waiting for established facts. In other words, if a leader believes raw material costs will increase by 20% in the next six months, they can plan for the increased costs and adjust later if the actual increase is more or less.
Talk to Everyone in Your Organization
Orzechowski stressed the importance of seeking out insights from the most unexpected places. He suggested listening to and engaging employees from different political views, socioeconomic backgrounds, and departments.
They may provide insights that you wouldn't get from traditional sources and can help you stay ahead of the game. As Orzechowski points out, "Your suppliers might be cutting corners [in the packaging process], your receiving people might be noticing shifting qualities, talk to your buyers, your accounting team, talk to truck drivers—and listen!"
Work with Your Vendors
Warwood Tool's Azur is optimistic about tariffs since most of the company’s raw materials come from U.S.-based suppliers. Azur advises partnering with vendors during these challenging times. Look for new domestic suppliers, especially those who are creative in supporting their customers during disruptions.
Don't Stick with the Status Quo
Azur emphasized the importance of being open to change, especially during uncertain times. He shared an example of recently switching one of their major vendors because they negotiated favorable payment terms and inventory arrangements.
Upcoming Webinars
The first of four tariff-related webinars was just the beginning. The next webinar, scheduled for June 8, will delve into the costs of reshoring manufacturing to the U.S., with discussions with site selection professionals, machine tool market experts, and construction engineers on how quickly companies can build new capacity and how costly those efforts will be.
In the business world, leaders can't solely rely on long-term plans due to market volatility, instead they should focus on preparing for various outcomes, as highlighted by Rebecca Homkes, a lecturer at the London Business School Executive Education. The panelists during a recent webinar, which included experts from the manufacturing industry, finance, and business, revealed the importance of decision-making based on personal beliefs and open communication within the organization.
