Tariffs - What Will They Do To Your Business????

February 4, 2019

We have received many calls from members talking about the affects that proposed tariffs if enacted will have on their business.  We are hearing from many log/lumber suppliers that have explained that over 50% of their sales are now destined for Asia.  They have explained how their business will be devastated if the tariffs take affect and the layoffs it will cause.

As is the case in a free market economy companies are allowed and encouraged to sell their products where they can make the most amount of money and best benefit their company.  In speaking with many owners they explain that most of their new sales to Asia have occurred in the last 5-7 years.  We have been told "the prices are so good I couldn't afford to ship the item to old customers in the States."  Many have told us that they believed foreign governments were subsidizing the purchase of raw materials which drove the prices so high, but they didn't care as long as they were getting paid.

Once the government applied partial duties and things slowed down, the game changed.  Now material was backing up and prices were dropping as the only customers were located in the US and Europe.  Businesses are being forced to re-connect with old domestic customers and develop long neglected sales.  End users are telling us that their calls are being answered again.  

One of the "benefits" of the tariff threat is the fact that companies must again work to expand their customer base to include both domestic and export customers.  

Since 1929 the WPMA has been working with members to help them increase sales and remain profitable in a global economy.  We continue to distribute leads for new business to our members.

For more information please call Philip Bibeau, Executive Director at 978/874-5445.

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