Trade tariffs are especially problematic for heavy equipment manufacturers, as many rely heavily on cross-border supply chains. The tariffs could represent an increase in costs of production by 6% for agriculture and construction equipment and 7% for mining equipment, according to an IHS Markit/AEM report.
Many equipment manufacturers are not able to pass the rising cost of steel to their customers. But the costs have to be offset somehow, leading many manufacturers to look for fresh approaches to eliminate longstanding supply chain inefficiencies and increase productivity.
