As tariffs and trade wars are now regular topics in the news, U.S. industrial businesses, especially smaller and specialized manufacturing firms, need a strategy to avoid disruption from trade war implications.
A Strategy for Stability
Since late 2017, the current administration has sought to create tariffs and restrictions on imports intending to protect the national interest and improve America’s global competitiveness. Whether the approach is thought to be reckless or reasonable, businesses are simply working to maintain profitable operations during these changing times.
For U.S. manufacturers, however, time is of the essence to re-evaluate production plans and supply chain strategies to minimize disruption and maximize new opportunities. A responsive, local supply chain strategy is one, proactive way companies can open up new sourcing opportunities while working to maintain operational stability.
Steel and aluminum tariffs are boosting business for the country’s steelmakers with increased revenue, profit, and hiring. But, for manufacturers that use steel or metal for production or fabrication, the tariffs are creating challenges.
According to the National Small Business Association, the steel tariffs are problematic and could have “negative implications and likely will result in higher materials prices for manufacturers and thus increased prices of many goods.”
Smaller manufacturers are advised to have strategies developed that can help counter the effects of tariffs. One critical area where companies can regain control is in evaluating the supply chain and investigating local sourcing.
SyncFab Supply Chain Network Simplicity
Manufacturers seeking specialty parts suppliers, precision parts manufacturers, or CNC machine shops that are pre-qualified, high-quality, and in the U.S. look to the SyncFab Smart Manufacturing network.
SyncFab is the first decentralized manufacturing supply chain that uses blockchain technology to connect manufacturer buyers and suppliers directly. Using local, U.S.-based specialty parts manufacturers as part of the supplier network, SyncFab helps companies reduce uncertainty and enables buyers to keep production moving with a secure, responsive, and completely transparent supply chain process.
In addition to providing supplier security and strategically coping with trade war dynamics, SyncFab will simplify even the most complex or uncertain supply chains with a simple, easy-to-use, and secure online model.
SyncFab (MFG) is an ERC20 cryptocurrency token issued by Smart MFG Tech for use in supply chain and manufacturing smart contracts. MFG can be used to incentivize RFQs, secure and pay for smart contract POs (Purchase Orders) along with supply chain tokenization on the manufacturing blockchain.
Cryptocurrencies, like SyncFab’s MFG token, are international fiat commodities and are, therefore, stable solutions to the US-China trade war. Conversion rates between the United States Dollar and Chinese Yuan are constantly changing due to tariff fears instigated by Trump. Investors who operate in these currencies are at risk. A global market needs a global currency that is not altered by domestic policy.
Learn more about SyncFab.