Tariff Troubles? Here’s How Automation Can Help (If You’re Ready for It)

Businesses hate uncertainty like Wi-Fi hates a Zoom call—right when it matters most, everything freezes. In our connected world of complex global supply chains there’s nothing more freezing than uncertainty around the “T-word.” Tariffs. 

Managing Uncertainty Looks Different At Every Scale

I recently had the pleasure of speaking with a senior executive of a global electronics manufacturer out of Korea. Their products are everywhere in our households, from TVs to refrigerators. Our conversation didn’t revolve around tariffs but uncertainty in general. His position was simple: give governments and companies a clear direction around policy, then plans to handle costs can be made in kind. 

The reflection of uncertainty in business to his point wasn’t really about the question of costs but more about responsibility to steward his business to make strategic decisions and deal with reality. Costs in business are items to be managed.  

However, this perspective comes through the filter of being a member of a multi-billion-dollar organization. Does it really hold up for small to medium-sized business owners? Is it feasible for them to simply “manage costs” and plan for the future given the uncertainty? 

Reshoring Sounds Great, But Who’s Going to Do the Work?

We’ve all been hearing a lot about the efforts of the current tariff policy to generate reshoring activity and bring manufacturing back to the U.S. While this effort may appear noble on the surface, those in the manufacturing sector know the implications of this activity.  

Some businesses can reshore given their product line types and volumes. For other businesses, it may not be as cost effective.  

I recently read an article about Nike saying that labor costs for their shoe production are not sustainable in the U.S. without significant increase in price to the consumer. Apple iPhones are made in plants where employees need to install flex connectors that are measured in millimeters and screws that are measured in sub-millimeters by hand. Couple this with the unemployment rate at 5.4% in Michigan and 4.2% in the Midwest and you’re left asking an obvious question: Who will be able to employ the plants that reshoring is promising? And will the unemployed really want those jobs? 

How Automation Can Help (If You’re Ready for It)

This is where we’re expecting to see an uptick in automation requirements. If companies plan to increase their onshoring capacity, they’ll need to address the current labor market realities. We’ll need to do more with less—more so than before. That’s where automation can be a huge help. 

When I define automation, it’s a bit of an encompassing word. It can include machines, robots, data, and AI. I’m hosting a webinar in early May where I’ll approach this topic mostly from a physical automation focus, but the basics apply to all automation projects.  

But Simon Sinek is right; you need to start with WHY first. Too often, we get caught up in the hype around new technologies. I’ve worked with companies whose ownership mandated automation because it’s “the future” and had no idea or plan for implementation. They were on the bleeding edge, and they bled money because of being early adopters.  

At DISHER, our desire is to help companies to avoid these pitfalls. In the webinar, I’ll walk through best practices around scoping work, what return on investment (ROI) means, and how to calculate it. I’ll help you answer the question, “Am I making malinvestment or will I make gains on these costs?” And I’ll discuss some of the many blind spots around implementation of automation solutions, like: 

• Do you have a solid project manager?
• Did you budget for contingency?
• Did you start by defining what success looks like?

If you can’t attend the webinar but are interested in this discussion, feel free to reach out and we can set up a time to talk 1:1 about your situation. 

Don’t Just Automate—Automate with Purpose

All of these ideas have a similar theme: reducing uncertainty.  

Automation can be an incredible tool when implemented properly and for the right reasons. I have seen many successful projects, but I have also seen projects fail miserably because uncertainty wasn’t addressed properly.  

Tariff policy is one area most of us cannot control. But we can countermeasure some of the underlying uncertainties that are under our control. We can make sure that we do the basic “block and tackling” in our businesses and the decisions we make.  

Now if you will excuse me, I need to go make sure our webinar is not using Zoom.