Any CFO or financial advisor will tell you the same thing during times of mass uncertainty: don’t panic. Take a deep breath. Look at the big picture.
Conventionally, this advice is wise—making far-ranging, knee-jerk business or personal decisions based on global news or a market correction may end up costing you more in the long run. But with new global tariffs now in effect and the looming possibility of an extended trade war, particularly between the U.S. and key manufacturing partners, businesses can’t afford to ignore the ripple effects these tensions may have on supply chains, material costs, and operational efficiency.
We’ve written about tariffs before, and now is the time to be smarter, leaner, and more proactive—optimizing every process, minimizing waste, and using data to make informed decisions faster than ever.
See How Real-Time SPC Can Reduce Scrap and Improve Margins
What Should Manufacturers Do Right Now?
Start by investing in the systems and strategies that help you control what you can: your operations. In an environment where raw material costs are surging due to tariffs, manufacturers have far less room for error. Reducing scrap isn’t just good practice; it’s a financial priority in an uncertain economic environment.
If your materials and supplies now cost 20% more due to tariffs, then every bit of waste becomes 20% more costly. That additional expense will either be passed on to customers or absorbed in your margins. The only way to protect profitability without raising prices is to lower the cost of production. That means reducing waste, improving yield, and making real-time adjustments to avoid expensive rework.
That’s where statistical software and Real-Time Statistical Process Control (SPC) come in. These tools don’t just track performance. They actively improve it:
- Higher material costs = less room for waste. Scrap reduction directly protects your bottom line.
- Improved yield = better margins. Every additional unit of good product helps offset rising input costs.
- Real-time insights = quicker corrections. Catching issues early keeps small problems from becoming expensive ones.
- Data-driven decisions = leaner operations. When every dollar counts, you need to make the smartest move, not just the most familiar one.
In short, leveraging statistical tools now isn't just helpful; it's a smart and strategic move.
Partnering for Resilience with Minitab
In times of uncertainty, you don’t have to navigate change alone. Minitab offers more than just software—we provide guidance, analytics, and continuous improvement expertise to help you adapt quickly, reduce risk, and uncover new opportunities. Whether you're facing rising costs, supply chain challenges, or shifting market demands, Minitab is here to help you build a stronger, more resilient operation.
