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PODCAST | Tariffs Highlight the Gap Between Prepared and Unprepared Manufacturers

Tariffs continue to reshape manufacturing economics, but their impact is far from consistent. For some companies, tariffs create opportunity. For others, they introduce cost pressures that expose existing weaknesses.
According to Eddy Azad, founder and CEO of Parsec Automation, tariffs are just one example of the broader disruptions manufacturers must be prepared to manage.
Companies that already operate efficient, modernized facilities are often better positioned when tariffs increase the cost of foreign competition.
“If your foreign competitors’ cost has escalated, you have gained significant advantage.”
These manufacturers can capture market share as their relative cost position improves.
However, many manufacturers remain heavily dependent on global supply chains. Even domestic operations often rely on imported materials and components, meaning tariffs can drive up costs across the board.
This creates a complex dynamic: tariffs do not simply benefit or harm the industry—they shift advantage between companies.
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Azad’s message, however, is clear: “Don’t just sit there, hoping that it’s going to go away.”
Instead, manufacturers should assume disruptions will persist and focus on what they can control. The most effective response is often internal improvement.
“How do I reduce my cost impact? How do I reduce waste? How do I get it right the first time?”
These improvements, Azad says, provide resilience regardless of external conditions.
Tariffs have also renewed interest in domestic manufacturing, but companies without an existing footprint face significant barriers.
“You have to go get a site, permits, construction, equipment. It’s going to take months, if not years,” Azad says.
This reinforces the importance of long-term planning. Companies that have already invested in domestic operations are better positioned to respond.
“If you're already here… you are the winner.”
Ultimately, tariffs do not determine success or failure—they reveal it.
“It comes down to how prepared you were prior to these.”
Manufacturers that focus on operational strength and long-term strategy will be better equipped to navigate not only tariffs, but whatever disruptions come next. That focus on operational readiness is increasingly tied to how work is executed on the factory floor. Parsec Automation recently introduced a connected worker capability within its TrakSYS manufacturing execution system designed to trigger operator actions based on real-time production conditions.
The approach allows manufacturers to standardize workflows, respond more quickly to disruptions and reduce variability, capabilities that align with the kind of internal improvements Azad said are critical when external pressures such as tariffs shift cost structures.Looking for a reprint of this article?
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