KI Sees a Wild West
Wisconsin manufacturers, like Green Bay’s KI, are facing a “Wild West” situation due to Trump’s tariffs. KI, which makes contract furniture, is struggling with the shifting trade policies affecting U.S.-Canada commerce. While they primarily produce in five U.S. plants, their Ontario factory contributes $50 million to their $800 million annual sales, with 90% of those sales returning to the U.S., making them vulnerable to trade changes.
CEO Brian Krenke describes the trade environment as very unpredictable, with frequent policy changes hindering long-term planning. Like many manufacturers, KI is battling rising costs from steel and other component tariffs, forcing them to rethink pricing.
To manage these costs, KI is taking two steps. First, they’re raising prices across their product lines to cover increased material expenses. Second, they’re adding a “tariff surcharge” to certain products. This means premium items, like Italian office chair parts, will have an extra cost, giving customers a choice between high-end and budget options.
Krenke stresses that these rapid trade policy changes create a difficult environment, especially for companies with international operations. The unstable landscape makes it hard for KI to plan or create consistent strategies. Despite this, they’re adapting to stay competitive and manage the financial impact of tariffs on their supply chain and prices.
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