by Mike Meiresonne, IQS Directory

As trade relations between China and the United States deteriorate, OEM manufacturers and their metal suppliers are caught in the middle.

Who is affected first?

Metal Suppliers

Jim Netti from Metalmen Sales says “when the possibility of tariffs were announced, many buyers, concerned about the security of their supply chain and motivated by the desire to purchase at pre-tariff prices, rushed to place orders for the existing inventory. And price in effect (P.I.E.) clauses were put into place lending an air of discomfort. 

As a result, there are many manufacturers who are unable to source for production, or must wait long lead times, or must pay premiums.” 

Metals such as stainless steel, nickel, copper, aluminum, tungsten, titanium come in many different forms. Typically when referring to industrial metals, suppliers will include a number of products like bars, foils, plates, rods, sheets, rolls, strips, wires and various other forms like aluminum extrusions, wire cloth and stainless steel tubing. Suppliers frequently offer customized solutions as many types of metals can be manipulated to fit particular specifications. Many steel service centers will first feel the effects of the tariffs.

What segments of the OEM market will bear the brunt of the price increase and the resulting revamping of resources?

Metal industries affected

Expanded Metals

Laser Cutting

Powdered Metal Parts

Fabrication

Metal Stampings

Etched Metals

Gears

Screw Conveyors

CNC & Waterjet Cutting

Tube Fabrication

Metal Forming industries affected

Aluminum Castings

Cold Headed Parts

Forgings

Grey Iron Castings

Investment Castings

Metal Spinning

Powdered Metal

Roll Forming

Springs

Wire Forms

Metal Filters

Metallurgy

 Additional industries affected

Bulk Material Handling

Dock handling equipment

 Filters

 Material Handling Equipment

 Mass Finishing Equipment

 Pharmaceuticals

 Recycling Equipment

 Size Reduction Equipment

Plastic Molding

Data Equipment

The far reaching impact to the OEM market will be significant in regards to pricing and inflation, supply shortages, and growth and employment for the OEM manufacturing industries. A quick resolution to the trade imbalances will solve many unseen economic manifestations that will occur due to these structural artificial impediments to the overall economy.

by Mike Meiresonne, IQS Directory