Tariffs, Turmoil & Trade: How Supply Chains Adapt

What a gift.

Yesterday, Dave DuBose and I facilitated a breakout table at CRLC — Columbus Regional Logistics Council’s Future of the Industry Shop Talks. Our topic was:

Tariffs, Turmoil & Trade: How Supply Chains Adapt

First, a word of appreciation. The CRLC is a tremendous asset to Central Ohio, and Christine Boucher and her team continue to do an outstanding job bringing supply chain leaders together to learn from one another.

A few observations from our discussion:

• As with most government actions, tariff policy has created both winners and losers. Some companies made proactive moves that paid off. Others made smart decisions that were later undermined by subsequent policy changes. The lesson: nobody wins every bet. Effective leaders maintain a forward lean, absorb new information quickly, and continue to play to win.
• Tariff policy has become a forcing function for operational improvement. Many organizations have accelerated cost-out initiatives, near-sourcing efforts, and supply chain redesign work. In many cases, their operations are healthier and more resilient as a result.
• Strong customs and trade compliance professionals are worth their weight in gold. Several participants commented that they wish they had engaged these resources earlier and more aggressively.
• Banks and lenders are paying close attention to tariff exposure. Working capital requirements, profitability, growth prospects, and overall credit risk can all be affected by trade policy changes.

My conclusion is that the rapid changes in tariff policy have definitely been a cloud over our business environment. But it is a cloud with a silver lining. It has created opportunities for businesses willing to adapt.

As leaders, our job is not to complain about the cloud. Our job is to find and maximize the silver lining.