The election of Donald Trump as our 45th President certainly raises a number of issues for retailers. One of those issues is a possible supply chain interruption. With Sharn Enterprises being a supplier to many of the nation’s top retailers, I can tell you that forecasting product demand is a problem for most retailers. Now those problems might become even more serious.
Because of Trump’s proposed trade reforms, you may conclude that your existing supplier network may be changing whether you like it or not. This is particularly true if you import your goods from countries like China or Mexico. In Lee Iacocca’s 2007 book titled “Where have all the leaders gone?” he describes in great detail the large trade imbalance between the United States and countries like China. He anticipated how this ever increasing deficit has and will continue to hurt the United States economy. We just elected a President who has campaigned on reversing these unfair trading deals. That means your forecasting strategy may need to change.
Consider some of the possibilities that are not yet settled. For example, higher taxes and fees for imports, products being stranded on a foreign dock due to the lack of trust, or even protectionism as a result of Trump’s policies.
Concerns for these higher risks should lead you to consider local sourcing options for your products and services. In other words more of a “back to America” plan for supply chain management. Using a more local approach when ordering, will guarantee you faster service, lower minimums for your orders, dependable quality, reduced transportation costs, and more friendly payment terms. Equally important, it will help create American jobs!
We here at Sharn Enterprises are proud of our 41 years of American manufacturing, quality and service.
For more information about our products and services, visit our website at www.sharndisplays.com
A Proud American Manufacturer
Sharn Enterprises Inc. @sharnenterprisesinc