When left open, skilled trades positions do not pause production costs. They quietly multiply them.

Often, the most visible cost of a skilled trades position that’s left open is the wage that is not being paid, which can make waiting seem economical. However, on the production floor, the opposite is true. The missing machinist, welder, maintenance technician, assembler, or controls specialist greatly affects output, extends downtime, creates overtime pressure for other personnel, delays orders, and oftentimes pulls experienced employees away from their highest-value work.

FlexTrades has cited an average of nearly 59 days to acquire skilled trades technicians and engineers through direct-hire methods. In comparison, it takes an average of 4.5 days for FlexTrades to fill those same open positions for manufacturers across the United States. That difference represents 54.5 days of additional productivity when a FlexTrades employee is deployed to customer sites.

So, when you’re thinking, “What will it cost to bring in help?” the real question should be, “What is the cost of every single day without the skilled personnel needed to meet demand?”

A Vacancy Is an Operational Constraint

Work does not disappear when there are vacancies on the manufacturing floor. Rather, that work is deferred, redistributed, slowed, or completed with less experienced support. And that means:

  • Lost throughput: Machines, lines, or work cells run below capacity.
  • Overtime and fatigue: Existing employees cover the gap, increasing labor spend as well as the risk of burnout, sick days, and attrition.
  • Longer downtime: Preventive maintenance is postponed and repairs wait for the right expertise. Repairs are often costlier as well.
  • Quality issues: Rushed work, unfamiliar assignments, and thin supervision can raise rework and defect risk.
  • Delayed revenue: Backlogs grow, shipment dates move, and new work gets declined.
  • Leadership distraction: Supervisors spend more time scheduling around shortages and less time improving the operation.

Calculate the Cost Per Vacancy on a Daily Basis

A useful estimate doesn’t need to be perfect, but it is very revealing. Start with the costs that can be measured inside the facility:

  • Production value lost per hour multiplied by the number of constrained hours.
  • Overtime premium paid to cover the work.
  • Downtime or idle-equipment cost.
  • Rework, scrap, and expedited-shipping costs.
  • Revenue or margin delayed by missed output.
  • Supervisor and senior-employee time diverted from higher-value work.

Here’s an example.

If an open role contributes to just $2,000 per day in lost output, overtime, and delay costs, a 59-day hiring cycle creates $118,000 in operational cost exposure. Even if only part of that amount could be recovered by adding qualified support sooner, the cost of action may be far lower than the cost of waiting.

Costs Aren’t Short-Term: They Compound

  1. Overtime Becomes a Retention Problem: Overtime can protect a schedule for a short period, but it is not a durable workforce strategy. As the weeks add up, fatigue affects attention, attendance, safety, morale, and retention. One vacancy eventually contributes to another, making the original shortage more expensive to solve.
  2. Deferred Maintenance Raises the Stakes: When maintenance teams are short, urgent repairs naturally outrank preventive work. That tradeoff may keep production moving today but also increases the likelihood of a longer outage tomorrow. The cost is no longer just the open position; it is the lost production surrounding an avoidable failure and the increased cost to repair as well.
  3. Quality and Delivery Risks Reach the Customer: Labor shortages in a manufacturing facility are not confined to the facility itself. They show up as longer lead times, inconsistent quality, missed delivery commitments, and slower responses to new orders. Those outcomes affect customer confidence and can influence future business long after the position is filled.

Speed Matters, but So Does the Quality of the Match

Filling a position quickly only creates value when the person can perform the work. Traditional industrial staffing fills at a rate of 64%, while FlexTrades’ placement rate sits at 99%. Additionally, when you compare FlexTrades’ assignment success rate of 82% to that of traditional temporary staffing firms, you’ll find it is much higher than their 55% success rate. That produces an estimated 2.7 times more production output for a project with 10 of our highly skilled technicians onsite.

There’s an old adage that says, “You’ve got to spend money to make money,” meaning financial investments and risks are often necessary to generate profit. Only half of that is true when working with FlexTrades. There may be an investment required to bring on our workforce, but it’s not a risk. Our technicians have the skills and experience you need right from the get-go and ramp up very quickly in new facilities. We deliver certainty.

How FlexTrades Ultimately Helps Your Pocketbook

The financial case for faster support becomes strongest when:

  • A machine, line, or shift cannot run at planned capacity.
  • Backlog is growing faster than the internal team can recover it.
  • Overtime has become routine rather than temporary.
  • A product launch, facility move, automation project, or shutdown has a fixed deadline.
  • Experienced employees are training, troubleshooting, and producing at the same time.
  • The local labor market cannot supply the required specialty quickly enough.

Additionally, FlexTrades protects the permanent hiring plan. Adding contract skilled labor does not require a manufacturer to abandon direct hiring. It can protect production while the company continues searching for the right permanent employees. A “bridge the gap” solution can stabilize output, reduce overtime, support training, complete urgent projects, and prevent the hiring team from lowering its standards simply because the operation is under pressure.

The Cost of Waiting Is Too High

The cost of an open position can add up quickly. Don’t let workforce gaps hold back production.

Ready to close the gap? Contact FlexTrades today to find the skilled workforce you need.

Peak season puts significant pressure on manufacturing operations. Production schedules tighten, delivery timelines shorten, and customer demand increases. That said, peak season also makes unexpected downtime downright detrimental. That’s why preventive and predictive maintenance is critical before entering peak season.

Servicing and repairing equipment before demand spikes helps reduce that downtime. It minimizes disruptions, protects productivity, and goes a long way toward keeping employees working safely and efficiently. And, if you’re like many other manufacturers, peak season often requires hiring a supplementary workforce. If equipment and tools are ready for use, it makes managing that supplementary workforce easier, too.

What Is Preventive & Predictive Maintenance?

Preventive maintenance follows a fixed timeline, either days, months, or run times, at which specific services are required on machinery. Predictive maintenance is based on real-time data and analytics of actual equipment performance or sensor alerts.

In both preventive and predictive maintenance, the goal is simple: address small issues before they become costly problems.

Why Peak Season Changes the Equation

During normal operations, an equipment failure is inconvenient. During peak season, the same failure can have a much larger impact.

A single failure in one area of a manufacturing process can create a bottleneck that affects other production areas and operations. It’s a domino effect.

And the consequences can extend beyond lost production. Unexpected downtime can contribute to:

  • Missed production targets
  • Delayed customer orders
  • Overtime expenses
  • Increased pressure on employees
  • Disruptions to shipping and receiving
  • Unplanned repair costs
  • Difficulty maintaining staffing levels and schedules

Predictive/Preventive Maintenance and Workforce Planning Go Hand in Hand

Thinking about the equipment and machinery before peak season is only one part of the preparation that needs to occur. The people operating, maintaining, moving, and supporting that equipment are just as important.

When machinery is running reliably, employees can spend their time performing the work they were scheduled to do instead of dealing with preventable disruptions. Reliable equipment also helps supervisors create more predictable schedules and maintain a consistent workflow.

For industrial employers, peak-season preparation often involves two parallel priorities: making sure the equipment is ready and making sure the workforce is ready and available. The latter often involves bringing on additional production workers and talent before demand reaches its highest point. Partnering with FlexTrades is one of the easiest ways to supplement your workforce before and during peak season.

Working with an industrial staffing partner can help employers build that workforce proactively rather than waiting until staffing shortages begin affecting operations. Contact FlexTrades if you need support on your maintenance team to accomplish your preventive and predictive maintenance tasks or if you need any other skilled technicians to meet your peak season demands.

One of our recent customers found out the benefits of working with FlexTrades quickly. They had a machine that was critical to their operations, and when it went down, they thought it was a goner. They were already spending time considering outsourcing options and/or new equipment purchases. Not only were they spending time considering these options, but they were also close to spending a lot of money to do so. Our highly skilled maintenance technician, with a wealth of knowledge and experience, was able to assess the machine and get it back up and running, which saved time, money, and our customer’s delivery timelines.

And those aren’t the only costs either. There is a cost to waiting, so preparing before the rush is your best bet.

Start Preparing Before the Rush

A strong preparation strategy can include:

  1. Review equipment maintenance records. Identify recurring issues and equipment that may require additional attention.
  2. Prioritize critical equipment. Determine which machines or systems would create the greatest operational impact if they failed.
  3. Schedule preventive service early. Complete inspections, repairs, and replacements before peak season hits.
  4. Review staffing requirements to estimate how many additional employees will be needed to meet projected demand.
  5. Plan for training and onboarding to make sure new and existing employees understand equipment, processes, and workplace safety expectations.
  6. Build flexibility into the workforce and consider how staffing needs may change as demand fluctuates throughout the season.
  7. Monitor equipment and staffing performance.
  8. Use lessons from previous peak seasons to improve future planning.

A Stronger Peak Season Starts With Preparation

All in all, stronger production during peak season starts with preparation. Peak season will always bring challenges, but many of those challenges can be anticipated. Preventive and predictive maintenance helps industrial operations identify equipment problems before they become production emergencies. Proactive workforce planning helps ensure there are enough people available to keep operations moving. Together, these strategies can give employers greater control over one of the busiest periods of the year.

Celebrating 250 Years of America and American Manufacturing

This year, the United States is celebrating the 250th anniversary of the signing of the Declaration of Independence. For two and a half centuries, one constant has been at the heart of innovation, economic growth, and progress: manufacturing.

As we celebrate America’s 250th anniversary, let’s also remember to celebrate the manufacturing industry and the people who power it. Everything coming out of manufacturing has shaped the world we live in, and behind it all are generations of skilled workers, engineers, inventors, and leaders driving it forward.

The Foundation of American Progress

When the Declaration of Independence was signed in 1776, manufacturing was local and handcrafted. It consisted of individuals working in small shops producing tools, textiles, agricultural equipment, and household goods that were needed to create and sustain growing communities. Ever since then, manufacturing has continually embraced change. As the nation expanded, manufacturing was a driving force. We’ve seen:

  • Mechanization replace manual production.
  • Electricity power shops, equipment, and efficiency.
  • The introduction of mass production thanks to assembly lines.
  • Computers create precision, automation, and repeatability.
  • Digital technologies and robotics transform operations for speed and safety.
  • Artificial intelligence, data analytics, and connected technologies continue to shape the future.

And while the tools have changed over the years, the drive for and toward innovation and resilience has not. Those have always been central to American manufacturing.

The People Behind the Product

While we can clearly see the way technology has transformed manufacturing, we don’t always see the people behind it. Generations of machinists, welders, technicians, electricians, assemblers, engineers, maintenance technicians, fabricators, operators, and many more have been the heart of America’s manufacturing legacy. They’ve built it up with their own hands while staying focused on the highest level of craftsmanship, collaboration, and commitment to continuous improvement. They are the problem solvers, the creative minds, and the doers behind everything, not only production numbers and goals but also the lasting impact that manufacturing has in the United States.

Manufacturing’s Lasting Impact

American manufacturing isn’t just about making “things.” Its impact extends far beyond the factory floor. When you dig in deeper, you’ll see that it really plays a vital role in developing, maintaining, and strengthening people, communities, and the country as a whole. Manufacturing and manufactured products have an effect on everything: economically, socially, and environmentally. And the next chapter promises even more impact and will be just as exciting as the last 250 years.

Celebrating the Past and the Future

As we celebrate the past 250 years of America and reflect on its history, let’s also celebrate and imagine the future. Let’s commemorate American independence while acknowledging the extraordinary role that manufacturing has played in shaping the nation. Let’s honor the people, the ingenuity, the problems solved, and the spirit of American manufacturing. Happy 250th birthday, America. Here’s to the makers and builders, innovators, and problem solvers who have shaped the past and will continue to shape the future.

Data center construction is accelerating rapidly, and while much of the attention is focused on the facilities themselves, the manufacturers behind them play a critical role in making that growth possible.

Not much happens inside a data center. It is really just a lot of computing hardware. But it takes a lot to ensure the computing hardware can do its job. This includes electrical distribution systems, cooling/HVAC equipment, server racks, switchgear, generators, enclosures, and other modular infrastructure. Those are the things that move the data center industry forward, and those are the things that manufacturers across the United States are making.

The demand for these systems and components has really increased the pressure on companies to scale their production while also meeting the demand for quality products and delivery schedules.

FlexTrades is experienced and knowledgeable in just that. We provide the supplemental workforce that supports these manufacturers and do so in a timely manner, with the right skills to ensure a fast ramp-up and quality product. We are helping sustain the growth and demand happening across the data center supply chain.

The Manufacturing Backbone of Data Center Infrastructure

Every new data center depends on a complex network of suppliers and manufacturers before construction of the building can ever begin. The following critical equipment must be designed, fabricated, assembled, tested, and delivered to project sites, and it is all done by U.S. manufacturers:

  • Power distribution units (PDUs)
  • Switchgear and electrical control systems
  • Backup generators and power systems
  • Cooling and HVAC equipment
  • Server racks and containment systems
  • Modular data center components
  • Cable management systems
  • Battery storage and UPS solutions
  • Monitoring and control technologies

What FlexTrades Can Do

To remain competitive, manufacturers need workforce flexibility and the ability to scale quickly when needed. By utilizing the FlexTrades workforce solution, manufacturers are able to:

  • Respond more quickly to new project requirements
  • Maintain resilience
  • Reduce disruptions
  • Increase production capacity during periods of peak demand
  • Meet customer demand and delivery schedules
  • Support facility expansions as production needs grow
  • Reduce delays in the hiring process
  • Gain access to specialized technical expertise
  • Manage growth more effectively

What FlexTrades Has Done

When it comes to aggressive delivery schedules and high demand, one of the biggest challenges facing manufacturers is workforce availability. This is true for almost every industry but is especially true right now for data center growth.

Our highly skilled workforce consists of the following technicians, all of whom we have supplied to manufacturers across the U.S. to help with demand in the data center industry:

  • Mechanical and Electrical Assemblers
  • Welders and Fabricators
  • Electricians
  • CNC Operators and Machinists
  • Quality Control Specialists
  • Test Technicians
  • Supply Chain and Logistics Personnel
  • Manufacturing Engineers

By ensuring these critical positions are filled, our customers have been able to increase their throughput, meet demand, and maintain high levels of quality product for these mission-critical applications.

Ready to Support Data Center Growth?

Whether you’re a general contractor, manufacturer, or project team building the next generation of data center infrastructure, having the right workforce in place is critical to meeting production schedules, maintaining quality, and keeping projects on track. Contact FlexTrades today to learn how our skilled workforce solutions can help support your data center construction and manufacturing demands.

Are you an experienced Mechanical or Electrical Assembler, Welder, Fabricator, Electrician, CNC Operator, Machinist, Quality Control Specialist, Test Technician, Manufacturing Engineer, or other skilled manufacturing professional? FlexTrades is actively connecting top talent with leading manufacturers supporting the data center industry. Connect with a recruiter today to start your FlexTrades journey.

It’s a tale as old as time. Manufacturers are always thinking about how to meet production demands and delivery timelines and how to do it with the available resources they have. And with the shortage of available skilled trades workers, it’s getting even harder.

The goals of companies nationwide are not only to meet demand and timelines but also to improve, improve, improve. And whose job is it to analyze manufacturing operations and determine ways to improve? Engineers.

But we’re facing a shortage of engineers who want to work in manufacturing and those that do, well, they just can’t do it all. So, what’s the solution?

Manufacturers are increasingly turning to supplemental workforces as a flexible solution to close talent gaps and reduce operational disruptions. But it’s not just happening on the production floor. It’s also happening in the engineering office.

Why Engineering Talent Is Critical in Manufacturing

Engineering is central to everything that happens on the manufacturing floor. Engineers carry the responsibility to:

  • Maintain equipment reliability
  • Improve production processes and documentation
  • Support quality control initiatives
  • Manage facility and equipment upgrades
  • Troubleshoot operational issues
  • Ensure compliance with safety and industry standards

How Engineering Shortages Create Bottlenecks

Everything in a manufacturing facility is interconnected. A shortage in one area impacts everything downstream. And with engineers responsible for so much of it, a shortage in engineering can create significant bottlenecks.

Common bottlenecks caused by engineering shortages include:

  • Delayed identification of manufacturing issues
  • Slow resolution of manufacturing issues
  • Production inefficiencies
  • Delayed equipment maintenance
  • Poor employee morale

Engineers keep equipment running. Without equipment running, downtime increases and production output decreases for manufacturers. They also identify and solve operational inefficiencies, always working to optimize workflow and focus on continuous improvement across the plant.

These are key factors in the overall health and well-being of every employee working in a facility. Without strong production processes and reliable equipment in place, morale decreases because workloads increase. When that happens, burnout, turnover, and productivity issues often follow.

With the growing demand for engineering talent combined with the wave of retirement-aged professionals in the field, and no strong incoming workforce interested in manufacturing careers, manufacturers need to think like engineers: outside the box. And that can often mean adopting a supplemental workforce strategy.

How Supplemental Workforces Help Manufacturers Reduce Bottlenecks

By leveraging a supplemental workforce in their engineering department, manufacturers can tap into external engineering and technical expertise for temporary, project-based, or ongoing support. This approach helps them respond faster to labor or resource shortages while reducing reliance on conventional hiring cycles.

Benefits of supplementing the engineering workforce include:

  • Finding the exact expertise needed for a specific project or operational challenge
  • Scaling the workforce based on business needs
  • Reducing downtime and overall workload for existing teams
  • Maintaining or improving operations while giving the search for the right long-term hire the attention it deserves
  • Completing large projects that often remain on the back burner because there simply are not enough people to help

Building a More Resilient Engineering Workforce with FlexTrades

Engineering shortages are likely to remain a major challenge for the manufacturing industry in the years ahead. Supplemental workforces offer a practical solution by helping companies access technical expertise quickly, improve operational flexibility, and support critical projects without long hiring delays.

Contact FlexTrades now if you would benefit from our engineering team’s support in your facility. And if you’re an engineer looking to experience new opportunities across domestic manufacturing while also enjoying the opportunity to travel, contact a recruiter today!

Mergers and acquisitions (M&As) in the manufacturing sector are often driven by clear financial and operational objectives such as expanding capacity, increasing funding, entering new markets, improving margins, or optimizing production footprints.

But while balance sheets and company alignments are what you see in the headlines, there is one much more important factor that really determines the success or failure of an M&A. That’s the people.

Unlike some other industries, M&As have an immediate impact on operations. Demand often increases after an M&A, and production needs to increase as well. There are consolidated or expanded production lines, products being transitioned from one facility to another, and equipment that needs to be running. Companies often end up asking more from their workforce while also trying to hire new talent. In doing so, they see burnout from current employees and soon realize there is a lack of skilled talent in the local market, requiring heavy training.

Talent as a Strategic Asset

So while M&As in the manufacturing sector are often about acquiring assets, they are not considered successful, nor can they be successful, without the most important assets: the skills and experience of the skilled trades, engineers, and technicians working hard every day to meet goals.

Workforce Planning

Workforce planning would ideally happen before any merger or acquisition is completed. However, that’s not usually the case. It’s not until the merger is completed that a company identifies skill gaps on the shop floor, the upskilling and training required, and the increased hiring needs. By then, it can feel too late because production and demand do not stop.

And that’s where FlexTrades comes in.

Leveraging External Workforce Support

In many cases, companies benefit from supplementing their internal teams with external talent. FlexTrades professionals bring expertise, flexibility, and additional capacity during a resource-intensive period.

A blended workforce model allows organizations to scale quickly, meet demand, and train new hires.

Contact FlexTrades

If you’re facing an upcoming M&A or are currently in the midst or aftermath of one, contact us. Our skilled team spans a wide range of experience and can provide exactly what you need, from Material Handlers to Quality Inspectors, Engineers, Supervisors, and even Trainers.

Manufacturing doesn’t slow down when your workforce comes up short.

Orders still need to ship. Quality still needs to hold. Deadlines don’t care if you’re understaffed.

That’s where FlexTrades steps in.

We provide highly skilled tradespeople who integrate quickly, work safely, and produce at a high level from day one. The result is simple. Less downtime. Fewer bottlenecks. More control over your operation when demand spikes or labor gets tight.

Across the United States, manufacturers rely on FlexTrades to close critical labor gaps without compromising quality or culture.

Most of our clients operate in core manufacturing sectors, including:

  • Primary Metal Manufacturing
  • Fabricated Metal Product Manufacturing
  • Machinery Manufacturing
  • Computer and Electronic Product Manufacturing
  • Electrical Equipment, Appliance, and Component Manufacturing
  • Transportation Equipment Manufacturing

But that’s only part of the story.

Beyond Traditional Manufacturing Sectors

Modern manufacturing is more complex than ever. Supply chains shift. Demand fluctuates. Skilled labor is harder to find and even harder to keep.

FlexTrades was built for that reality.

Our technicians bring diverse experience across a wide range of industries, allowing us to support operations that extend well beyond traditional manufacturing categories.

We regularly support production teams in:

  • Food Manufacturing
  • Beverage and Tobacco Production
  • Textile Mills and Textile Product Manufacturing
  • Apparel and Leather Goods Manufacturing
  • Wood Product Manufacturing
  • Printing and Related Support Activities
  • Petroleum and Coal Products Manufacturing
  • Nonmetallic Mineral Product Manufacturing
  • Furniture and Related Product Manufacturing
  • Merchant Wholesalers, Durable and Non-Durable Goods

If your operation relies on skilled labor to keep production moving, we can support it.

A Real-World Example: Scaling Production in a Rural Facility

One of our clients, a large rice manufacturer, faced a familiar problem.

Demand was rising fast as harvest season approached. Production needed to scale. But the facility was located in a rural area where hiring locally at speed simply wasn’t realistic.

They needed skilled workers. They needed them quickly. And they needed them to perform.

FlexTrades delivered.

Our technicians deployed to the site and stepped into critical roles across the operation, including:

  • Scale Attendants
  • Heavy Equipment Operators
  • Machine and Line Operators
  • Sanitation Technicians
  • Maintenance Technicians
  • Control Room Operators
  • Lab Technicians
  • Packaging Operators
  • Material Handlers

They didn’t just fill seats. They produced.

With the right people in place, the facility maintained output, protected product quality, and kept shipments moving during one of the most demanding periods of the year.

No shortcuts. No drop in standards. No chaos.

Just execution.

Built for Manufacturers Who Can’t Afford to Slow Down

Labor shortages aren’t going away.

If anything, they’re getting more unpredictable.

The manufacturers who win are the ones who can adapt quickly without sacrificing quality, safety, or their workforce culture.

That’s the role FlexTrades plays.

We give you access to skilled tradespeople when and where you need them so you can scale production, stabilize operations, and keep moving forward.

Let’s Get to Work

If you’re a manufacturer dealing with workforce gaps, production backlogs, or shifting demand, we’re ready to help.

Schedule a call with FlexTrades and take control of your workforce strategy.

If you’re a skilled tradesperson looking for your next opportunity, explore our open positions and get to work.

As cliché as it may sound, FlexTrades really does believe in “Safety First.” When safety is top of mind and safety protocols are followed, not only are the risks of worksite injuries reduced, but we also see an increase in quality, productivity, and employee morale.

Year over year, the manufacturing industry sees three common (and very preventable) causes of workplace injuries. These causes include:

  • Bodily contact with moving equipment (think hand injuries)
  • Slips, trips, and falls
  • Overexertion

So, what can manufacturers and manufacturing employees do to prevent these causes of injuries?

  • Have a “Safety First” mindset
  • Practice “Line of Fire Awareness”
  • Don’t be afraid to “Stop and Ask”
  • Conduct frequent safety trainings
  • Conduct audits
  • Be open to feedback

If manufacturing employees start their days with a Safety First Mindset, everything else falls into line.

Safety First Mindsets prompt employees and manufacturers to naturally practice “Line of Fire Awareness,” in which everyone starts each assigned task by being observant of their surroundings and potential hazardous objects or actions.

And with everyone practicing Line of Fire Awareness, employees won’t be afraid to stop when they see something potentially dangerous; rather, they’ll feel encouraged to ask someone for assistance.

When a culture is created in which everyone knows safety is first and foremost and open communication is welcomed, conducting safety training and safety audits become positives. And when positives occur frequently in a workplace, morale increases, and any feedback becomes positive feedback.

With all of this in mind, it’s easy to see that, if you want a project (or a workday) to finish safely, safety is where it has to start.

If you would like to learn more about how FlexTrades prioritizes safety, click here to contact our team, and we will get back to you shortly. 

Tariffs have long been a cornerstone of economic policy and international trade. These taxes on imported goods have been part of the U.S. trade landscape since the nation’s founding, influencing everything from government revenue to domestic industry growth. While tariffs are designed to promote certain economic goals, their effectiveness remains a subject of ongoing debate. For manufacturers, in particular, tariffs can create both opportunities and challenges. Let’s explore the history, purpose, and implications of tariffs to better understand their role in today’s global economy.

What’s a Tariff?

Tariffs are taxes that a country’s government imposes on goods imported from other countries. They have been a part of U.S. trade policy since the United States was founded. In fact, tariffs date back to 1789 when Congress passed the Tariff Act of 1789 and President George Washington signed it into law.

Why Are Tariffs Used?

In general, experts like Douglas Irwin, a professor of economics at Dartmouth College, agree that there are three main reasons for utilizing tariffs: revenue, restriction, and reciprocity.

  • Revenue: Tariffs are taxes on others. When other countries pay tariffs, it increases revenue for the imposing country.
  • Restriction: Tariffs can limit foreign goods, restricting imports while potentially supporting domestic goods. The word “potentially” is used here because some argue that restricting imports raises the price of domestic goods, reduces the availability of inputs manufacturers rely on, and exposes inefficiencies in domestic production.
  • Reciprocity: Tariffs can act as negotiating tools, promoting trade agreements and creating opportunities for trade negotiations.
  • Some experts suggest an additional “R”: Retaliation. Governments can raise tariffs against countries that have closed their markets, using tariffs as a means of retaliation.

How the United States Has Employed Tariffs

The U.S. Constitution grants Congress the “Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States.”

Early in the nation’s history, free trade was a key principle as the United States sought independence from British influence. However, imposing tariffs during this period helped generate revenue to develop the nation while meeting its goal of separation from British policies.

Historically, the U.S. has used tariffs to encourage domestic industrial growth. Up until 1913, tariffs were the largest source of federal revenue. With the introduction of the federal income tax, the government began to rely less on tariffs as a primary revenue source.

After World War II, the global economy required cooperation to rebuild. This led to the establishment of agreements and organizations such as the General Agreement on Tariffs and Trade, the World Trade Organization (WTO), and the North American Free Trade Agreement (NAFTA). These commitments to free trade sought to lower tariffs and facilitate imports and exports between countries.

What Tariffs Mean for Manufacturers

Tariffs and trade are often accompanied by tension, creating what could be called the “Three T’s.” For manufacturers, the impact of tariffs is complex, with varying opinions on their benefits and drawbacks.

Supporters of tariffs argue that they:

  • Increase domestic manufacturing and wages.
  • Boost government revenue.
  • Protect certain industries and intellectual property.
  • Address unfair trade practices.
  • Promote research, development, and innovation.

Critics of tariffs counter that they:

  • Disrupt global trade flows.
  • Create inefficiencies for domestic manufacturers.
  • Exacerbate market inequities.
  • Generate insufficient revenue to justify their implementation.
  • Increase costs for consumers.

What Do You Think?

Tariffs are a multifaceted tool that have shaped economic and trade policies throughout U.S. history. Their impact on manufacturers varies widely depending on perspective, industry, and the specific terms of trade agreements. Whether viewed as a means of promoting domestic growth or as a hindrance to global trade, tariffs remain a critical and often controversial element of economic strategy. For manufacturers and industry professionals, understanding tariffs is essential to navigating both opportunities and challenges in an increasingly interconnected world.

So, what do you think? Are tariffs a necessary safeguard for domestic industries, or do they do more harm than good?

Twelve years ago, in 2012, the Fabricators and Manufacturers’ Association (FMA) founded Manufacturing Day (MFG Day). MFG Day is a national movement to show the public (students, parents, and all others) just what modern manufacturing is all about because as they say, “It’s not your father’s machine shop anymore”.  MFG Day is always the first Friday in October so this year we are celebrating all things manufacturing on October 4, 2024.

In addition to MFG Day, many states and manufacturing associations (including the International Trade Administration) consider the first week in October National Manufacturing Week or the entire month of October Manufacturing Month. But it doesn’t stop there for FlexTrades, we celebrate manufacturing all year long and hope you will too.

Below are ways in which you can do so!

  1. Open your manufacturing doors to the public. You can find tips and tricks to do so
    1. If you’re an employee, encourage your employer to open their doors!
  2. Partake in trade shows as a visitor or manufacturer. Here’s a list of this year’s tradeshows, with a few left that you could still attend.
  3. Visit or participate in a tour (or two) of manufacturing facilities. Find events to attend or ways to host an event at com
  4. Know the industrial revolutions to understand how manufacturing has changed and why it’s so great!
  5. Talk to the kids you know and tell them what’s it like, share your knowledge of manufacturing and discuss the vast opportunities within a manufacturing career. Show them some of these great How It’s Made videos so time on their electronics is also spent learning!
  6. Share positive messages about manufacturing on your social media accounts.
  7. Follow and reshare positive messages from manufacturers and those in manufacturing on your social media accounts.
  8. Shop and buy American made products.
  9. Donate or volunteer to the Nuts and Bolts Foundation (also known as Nuts, Bolts & Thingamajigs ® – NBT). NBT is on a mission to bridge the skills gap in manufacturing, keep American manufacturing alive and strong, and provide students the opportunity to learn how they can do great things working in manufacturing.
  10. Donate your time and knowledge by visiting technical or trade schools to spread awareness about manufacturing and opportunities in manufacturing. Bring brochures with you (here’s an example).
  11. Encourage your coworkers or employees to share their own stories with each other.
  12. Curate an Employee Appreciation Day – managers can genuinely thank their workforce, provide pizza for lunch, organize a cookout, send thank you cards, give gift cards, sponsor a team outing, or film a video of thanks. The options are endless.

And as you celebrate, keep in mind the words of Alan Mulally, an American aerospace engineer and manufacturing executive, former executive vice president of Boeing, CEO of Boeing Commercial Airplanes and former President and Chief Executive Office of the Ford Motor Company. Alan is well versed in manufacturing and once said:

“No country is every successful in the long term…without a really strong and vibrant manufacturing base”.

Happy MFG Day (or week or month)!