Brian Cvetezar & Jeff Cvetezar
Tariffs, Trade Policy, and Business Impact in the Concrete Lifting and Leveling Market
It is clear we are all experiencing a turbulent business environment. Several customers and some prospects have directed questions to us as to the immediate impact and potential impacts of tariffs as they plan for the season ahead. Although announcement of U.S. intentions has just recently been publicized, we are already seeing some impact on HMI’s supply lines that may trickle down in the months ahead.
During COVID and other periods of supply line uncertainty we worked hard to communicate and minimize the impact on our customers. Our anticipation of circumstances has always allowed our customers to experience minimal impact. We are again taking steps to insulate you and below is an update on what we see unfolding in the months ahead.
POLYURETHANE – HMI has strategically maintained relationships with domestic and foreign suppliers of raw materials. This hedging strategy served us well during the COVID period and we suspect that it will be beneficial in the coming year irrespective of political negotiations. Additionally, HMI currently enjoys a significant inventory in anticipation of a robust season ahead. We have seen no major change in the market so far and all the above leaves us confident that the current base price per pound should hold through the fall.
POLYURETHANE EQUIPMENT – Notably selected components of our trailer package have already been impacted and the price increase of the trailer itself is being felt. This leads us to believe that a new trailer package will have modest price adjustment mid-summer. Vans, already in high demand, will most probably be impacted as well depending on the domestic/foreign models our customers choose. At this time, we have not been alerted to any other cost impacts on parts or supplies.
MUDJACKING EQUIPMENT – As of this date our steel or engine suppliers have not offered any signal of a price change. We are hopeful that prices of equipment and parts will be stable throughout the season. The exception may be truck units where again anticipated changes in the auto industry may be impactful.
The above is a snapshot based on what we know today. Of course, things may change in an instant as tariffs and trade policies are negotiated. However, we are committed to keeping our customers and friends informed as we all navigate through a time where obvious market changes will/can affect us all.