As shifting tariffs continue to squeeze profit margins, machine shops are feeling pressure to keep costs under control. “Small and medium-sized manufacturers are looking for ways that they can offset the cost of these tariffs and find other ways to cut costs,” says Andy Griffin, senior manager of pricing strategy and systems at MSC Industrial Supply Co.

While it might be tempting to chase the lowest-priced tools and supplies, Griffin says, that approach often misses the bigger opportunity. “We can find ways to provide much greater cost savings to a customer by enhancing their productivity,” he explains.

“Even if we gave it to them for free, it wouldn’t match the cost savings we can provide by enhancing the number of parts they’re able to produce and reducing the time it takes to produce them,” says Griffin. “The real savings come from going from making 100 pieces an hour to 150 or 200 pieces an hour—doubling a shop’s productivity and reducing its costs.”

For machine shops looking to blunt the impact of tariffs, that means focusing on performance and process rather than just price.

MSC metalworking specialist Adam Burkhart says many small and medium-sized manufacturers are responding to shifting tariffs by testing new technology and other products. “They’re interested in finding ways to run faster, free up some time and get more product out the door as a way to negate the problem of tariffs,” he says.

Machine shops are also realizing the value of diversifying in today’s economic climate, Burkhart says. “For example, if a shop is doing a lot of automotive work that requires them to source a lot of products outside of the U.S., then they might be able to change to manufacturing similar products for an industry that’s less affected by tariffs.”

Want to learn more about these and other cost control strategies that can help mitigate the impact of tariffs? See the infographic below:

Learn more about MSC’s inventory management solution.

Read about cost cutting strategies for manufacturing during uncertain times.