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Navigating Tariffs and Supply Chain Challenges: The Benefits of Domestic Sourcing of Metal Stampings
Talk of potential tariffs and their impact has been increasing in recent months, and as of February 1st these tariffs have now been put into place by the Trump administration. President Trump has signed executive orders implementing a 25% additional tariff on imports from Canada and Mexico, and a 10% additional tariff on imports from China. Energy resources from Canada will only be subject to a 10% tariff, however, and as of this writing, Mexico tariffs have been paused for one month. Countermeasures from the affected countries are underway.
The possibility of these tariffs on imported goods has driven companies to reconsider their supply chain strategies, with many looking toward domestic sourcing options and dual sourcing strategies to mitigate risks. Westlake Tool & Die can help through the reshoring of your metal stamped components, helping you to avoid some of the impact of these pending tariffs.
Reshoring and Dual Sourcing Metal Stampings
Prior to the concerns posed by any tariffs, many companies would regularly engage in offshoring and nearshoring when acquiring goods and services, including metal stampings. Offshoring pertains to making acquisitions from a business in any outside country, and nearshoring refers to making acquisitions from countries close to the original one.
With China being such a popular choice for offshoring, and Cananda and Mexico primary nearshoring options for American businesses, these options have now all been impacted by the recent tariffs.
Meanwhile, reshoring or onshoring metal stampings and other goods and services involves returning production processes back to the original (purchasing) country, in this case the United States. Reshoring gained significant popularity in the industrial world during the COVID-19 pandemic due to supply chain issues, with one study showing 41% of respondents having reshored at least some operations in 2021, and 20% planning to do more in the future. With impending tariff battles underway, reshoring will likely be an even more appealing option going forward.
Dual sourcing metal stampings is another viable option, as it allows companies to split output in whatever ways are most practical and profitable. For instance, a company could create an 80/20 or 75/25 split for their sourcing, with 80% to 75% of goods coming from international suppliers, and 20% to 25% coming from domestic suppliers. This will provide greater flexibility, mitigate risk, and allow the companies to offset some of the costs incurred by future tariffs.
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Why Westlake Tool & Die Is Your Source for Dual Sourcing or Onshoring Metal Stamping
If you’re reevaluating your metal stamping approach in light of recent tariffs and supply chain concerns, Westlake Tool & Die is ready to partner with you. We can provide domestic sourcing of metal stampings that supplies an array of benefits, including the following.
1. Speed and Efficiency
Domestic sourcing facilitates have the ability to quickly ramp-up capabilities because the companies that provide it are already performing the same work for local and national customers every day. At Westlake Tool & Die, we have nearly 50 years of experience in the industry, allowing us to quickly assess your needs, ramp up production, and deliver quality parts as needed.
Plus, we’re adept at reverse-engineering products from physical samples or drawings, providing rapid solutions for our customers that allow them to avoid skipping a beat in their production timetable.
2. Prototyping and Small-Batch Production
If you need to make some immediate adjustments to your supply chain practices, our team is flexible enough to facilitate just that. And purchase orders do not need to encompass millions of parts either, as we are happy to do short-run or small to medium-volume work to help you fill the gaps.
Our custom metal stamping and prototyping services can also help you to develop new products that address existing problems or meet any unfulfilled needs.
3. Warehousing and Safety Stock Solutions
With the uncertainty that tariffs impose and potential disruptions to the supply chain, relying on international sourcing can become problematic.
Reshoring metal stamping services through Westlake Tool & Die means gaining access to our warehousing and distribution resources that can assist you in managing fluctuations in overseas shipments. We’re proud to offer the option of storing safety stock for clients to reduce their need for international sourcing and to lower inventory turns.
4. Cleveland’s Local Advantages for Onshoring Metal Stamping
Cleveland’s robust supply infrastructure includes a range of critical post processing industries such as heat treatment, machining/grinding, paint and plating to name just a few. These local resources streamline processes, reducing lead times, lowering costs and enhancing the overall quality of the products produced.
Plus, because of Cleveland’s access to many waterways, it provides direct routes throughout the United States as well as to Europe via the Great Lakes Waterway.
5. Sustainability and Certifications
Companies concerned with their carbon footprint or meeting certain environmental goals can also benefit from the domestic sourcing of metal stampings since Cleveland’s shipping route is a much lower-carbon alternative when compared to importing goods from China.
Additionally, working with an American company means partnering with an organization held to rigorous certification standards, such as the ISO 9001:2015 certification we hold for metal stamping, welding, and assembly.
Westlake Tool & Die’s Unique Offerings
Choosing us for reshoring or dual sourcing your metal stamping projects gives you access to our diverse services and expertise. Along with prototyping and metal stamping services, we provide:
- CNC Machining Services
- Robotic Welding Services
- Precision Assembly Services
- Metal Fabrication Services
- Powder Coating Services
- (JIT) Warehousing Services
We are also adept at working with a range of materials, including low carbon steel, stainless steel, aluminum, and brass and copper.
Contact Us to Begin Reshoring Your Metal Stamping
Whether you’re looking to avoid costly tariffs, speed up your production, reduce inventory turns, or benefit from the quality craftsmanship that an American company can provide, onshoring or dual sourcing is highly advantageous.
Let Westlake Tool & Die help you adapt your supply chain strategies so you can keep up in the current landscape. Reach out to us today!
