Our Data     Sample Profile     User Reviews     Compare Versions     Subscription Pricing     Weekly Webinar     IndustrySelect Blog     Contact Us     Free Demo

An Inside Look into Manufacturers' Thoughts on Tariffs

Posted by IndustrySelect on Monday, June 24, 2019

100015_mfg_executiveThe new U.S. tariffs on $200 billion worth of goods went into effect last year and both consumers and businesses are starting to feel the effects. Here's what manufacturers are saying:

- ArcelorMittal reported high profits after the implementation of tariffs.
- PPG Industries announced that the tariffs added a modest cost to raw materials.
- Sonoco projects as much as $9 million in tariff costs in the second half of the year.
- Covanta said that the tariffs helped raise its revenue forecast by $10 a ton.

Who are hard-hit?

But there's more. Have an even closer look at some of the most widely recognized companies and their examples, most reported negative impacts. In fact, out of these, 59 have stood forward. Only seven have shown a positive effect alone, and that should say everything.

Electrolux, for instance, is a Swedish vacuum company that has seen very terrible negative effects, growing only worse every year through the use of its tariffs, raw materials and currencies.

These approximately stand at $328 million. That was from this year alone and, before that, it was at $298 million.

Let's show another example, that of Stanley Black & Decker. This toolmaker company is set to raise prices on their products for all its consumers and hopefully trim more than $200 million in its operating expenses next year, facing recent increases of more than $40 million on quarterly costs. This forced the company to cut this year's earnings forecast by a fourth, even at the midpoint of the year.

Additional Examples

• Caterpillar, another prime example of this negative effect, has seen tumbled shares after warning of rising costs altogether. Even as a construction equipment maker, it is still struggling to survive in such a usually successful industry. The tariff impact was quoted at approximately $40 million as of the third quarter of this year, and the full year effect is yet to be noted. Many experts say it will be somewhere around $100 million to $200 million, respectively.

• Let's take the example of United Technologies as well, another hot one on the list. It currently expects a 5-cent share to finish off this year, offset by its own pricing increases, and then $0.15 in 2019. Those responsible for most of the impact are the factors of imported climate control and carbon monoxide detectors and other safety equipment.

• Harley-Davidson is another example on the list as its executives so recently said they hope to mitigate tariff impacts, which will cost the company more than $40 million this year already by its end.

• Polaris is there, too, a top motorcycle brand maker, one also responsible for snow machines. It needs to offset its own tariffs if it wants to continue in business. It apparently left its guidance unchanged at approximately $40 million in regard to 2018's tariff costs.

Final Word

Tariffs are a major threat to the gross margin target of many companies, not excluding the Tile Shop, of which these should also rise by at least a quarter at the beginning of 2019. The Tile Shop continues to struggle. But it is not alone.

The Latest Data on U.S. Manufacturers

Looking to receive the most up-to-date data on manufacturers? An IndustrySelect subscription can put you on a first-name basis with 400,000 U.S. manufacturers. Subscribers can select up to 30 data points on any manufacturing company in the U.S.  to help identify or pre-qualify leads. Company profiles also include the contact information for hard-to-find executive decision-makers.Try a free demo today!

 

Want to keep up with the latest sales and marketing trends and exclusive industrial statistics from MNI? The free weekly IndustrySelect Insider email is the industry's top source for sales, marketing and industrial news you can't find anywhere else. Subscribe here.




Google NewsFollow IndustrySelect on Google News
Get 500 FREE
Industrial Leads from
IndustrySelect!
Reach U.S. manufacturers, suppliers, and industrial service providers with B2B company data
IndustrySelect
Researched firsthand by real people for unparalleled accuracy and detail, trusted by over 50,000 professionals at small businesses to Fortune 500 companies
IndustrySelect is the Industrial Database
Sales • Marketing • Recruiting • Research
Check  Identify prospects by location, industry, size
Check  View complete company profiles
Check  Executive contact data with direct emails
Check  Get instant counts, build unlimited lists
Check  Export profiles to your CRM
Check  Locate top executives by name & title
Check  Collaborate with your sales team
Check  See parent company and family tree
Check  Discover a company's key competitors
Check  Uncover hidden prospects with Intent Data
Check  Clone your best customers Customer Match
Check  Pricing levels for all budgets
Check  Use on your PC, Mac, tablet, or smartphone
Get 500 FREE demo leads now!
© 2025 MNI     License Agreement     Terms of Use     Legal Information     Privacy Policy     Fight Data Theft     DaaS for CRM/ERP     Data for SaaS/AI