3. Supply Chain Assessment
Some businesses have already begun pre-purchasing certain materials to lock in current prices. While that opportunity may have passed for some items, it’ s still worth evaluating your supply chain for: Critical components affected by tariffs Alternative sourcing options, including domestic suppliers Inventory management strategies that provide buffers against disruption Product redesign opportunities that reduce dependence on heavily tariffed components
For construction companies specifically, evaluating the timing of material purchases against project schedules may reveal opportunities to mitigate risk. Manufacturing businesses might benefit from exploring component substitutions or investigating whether suppliers can shift production to facilities in countries not affected by the new tariffs.
4. Cash Flow Planning
Tariffs can create immediate cash demands well before you can recover costs through sales. Developing a clear picture of potential cash flow impacts will help you make informed decisions about: Financing needs and line of credit adjustments Payment terms with both suppliers and customers Capital expenditure timing Inventory levels and carrying costs Accounts receivable management and collection priorities
A rolling 12-month cash flow forecast that includes various tariff scenarios can provide valuable visibility into potential pressure points and help you prepare contingency plans.
Build Your Advisory Team
Complex challenges rarely have simple solutions. We recommend bringing together multiple perspectives:
Your Rea advisor can help assess financial implications and tax consequences Legal counsel can review contract provisions and suggest protective language Industry associations often track sector-specific impacts and provide benchmarking data Supply chain consultants may identify alternative sourcing strategies Banking partners should be informed of potential changes to your capital needs
While Rea does not specialize in international trade policy, we’ re committed to being a valuable sounding board as you navigate these changes. We can also connect you with specialized resources through our alliance network when needed.
Stay Flexible & Connected
Perhaps the most important strategy is maintaining adaptability. The current tariff landscape will likely continue evolving, and businesses that build flexibility into their operations will be best positioned to weather whatever comes next. By focusing on these fundamental business practices, you’ ll not only navigate the current uncertainty but build resilience for future challenges as well.
Contact your Rea advisor today to discuss how these changes might affect your specific situation and to develop a customized strategy for your business. We’ re committed to helping you not just respond to today’ s challenges, but position your business for long-term success regardless of policy shifts.
Doug Houser, CEPA, CPA, MBA
Principal, Construction Industry Leader doug. houser @ reaadvisory. com
614- 314- 5937
Ryan Brickwood, CMA
Principal, Manufacturing & Distribution Industry Leader ryan. brickwood @ reaadvisory. com
330- 264 – 0791
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