To commemorate it’s 100^th episode, our Manufacturing Matters podcast hosted a panel of automation and manufacturing leaders to talk about the impacts of tariffs on supply chains around the world. On hand to share their insights were Jeff Stello, chairman of the board at Metaphase Technologies; Jason Covar, General Manager of The Imaging Source; Gerd Walter, President and COO of Creative Automation; and this year’s Engelberger Award recipient and all-around automation industry expert, Stu Shepherd.

Prices Likely to Go Up
While some of the panelists’ companies were committed to not increasing prices in 2025 for their automation solutions, others said the constantly changing tariff discussions created an uncertainty that only time would solve. Behind the scenes, panelists said some of their suppliers and competitors are already talking about price increases, while most agreed it was too soon to make those calls publicly. Ultimately, they said, it will depend on how long the tariffs are in place, at what levels, and between which countries, since many automation companies diversified their supply chains after the pandemic to help protect themselves against regional supply chain disruptions.

It’s Not COVID
While all panelists agreed that supply chain issues will be a major driver for markets in 2025, there was also unanimity that tariffs won’t become the next pandemic. COVID was a mixed bag for manufacturers, limiting key components such as semiconductors necessary for many manufacturing industries while prompting many companies to adopt automation at unprecedented rates to mitigate lockdowns and increased demand. Panelists agreed that trade negotiations are unlikely to cause disruptions as serious as the pandemic, adding that many automation companies had learned hard lessons during that time about the need for flexible operations and diversified supply chains.

Fatigue, Fear, and Hope
Despite the challenges of the pandemic and slow manufacturing growth in 2024, the overall outlook from the panel is smartly realistic. While there is a general feeling of fatigue triggered by manufacturing’s third major systemic challenge in just a few years, panelists were overwhelmingly optimistic about the future. While all agreed that manufacturing and automation companies could face short term supply issues, in the long term, they felt, the industry is stronger from the lessons learned in recent years. Noting that short term trade issues are not going to quench the world’s need for automation to meet global demand amongst an aging workforce, and that reshoring and currency valuations will also play important roles, the final message from the panel was one of hope—hope that current conditions will quickly resolve themselves and automation will continue to help improve living conditions around the world.

Be sure to watch the full episode below to hear more about which regions are likely to win or lose during a global trade war where production could shift around the world—but maybe not the way many expect.

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