A Conversation with Scott Simon on Tariffs and their Impact on Manufacturing

 

Adams Corp has built its reputation on helping  manufacturers optimize their production processes through innovative automation solutions. As the manufacturing landscape continues to evolve, particularly in response to recent policy changes, Doug Adams recently shared insights from his conversation with NPR's Scott Simon about the impact of new tariffs on American manufacturing and the challenges of reshoring production. 

 

Listen to the full conversation here.

When President Trump announced sweeping tariffs this week, markets reacted swiftly, with stock prices tumbling and China implementing retaliatory measures. As a company deeply embedded in the manufacturing ecosystem, Adams Corp's initial reaction was that these tariffs were "a little bit stronger than everyone really thought they would potentially be."

 

The most immediate effect the company is seeing isn't necessarily direct financial impact, but rather uncertainty. Adams Corp's customers are pausing to understand "the actual numbers that will be applied to their goods and services." This hesitation is natural but can slow down projects that might otherwise be moving forward.

 

For Adams Corp specifically, Doug Adams doesn't anticipate significant short-term effects. However, the long-term picture could change if the company's customers begin to reconsider their manufacturing investments due to shifting economic conditions.

President Trump's stated goal of bringing manufacturing jobs "roaring back" to the United States represents an admirable vision. In a perfect world, restoring manufacturing capacity to historical levels would strengthen the economy and reduce dependencies on global supply chains.

 

However, the path to achieving this goal is far more complex than policy alone can address. Based on decades of experience in the manufacturing sector, Adams identifies three fundamental challenges:

"The single biggest challenge we have in the manufacturing side is that we just don't have enough people that are in the manufacturing world," Adams explained during the interview. When manufacturing jobs moved overseas in the '70s, '80s, and early '90s, the country stopped training for these positions. An entire generation of manufacturing expertise was lost, and Americans weren't "sending our kids to school to be able to talk about or do those things and be prepared for those jobs."

 

This skills gap extends to automation as well. As manufacturing becomes increasingly technology-driven, the industry needs workers with specialized skills to design, implement, and maintain advanced systems.

Even with the right workforce, the United States faces significant capacity limitations. Many existing U.S. manufacturing facilities are already operating at maximum capacity. As Adams noted, "giving them the ability to turn on a dime is just really not something you can do."

 

The timeline for expanding manufacturing infrastructure is measured in years, not months. Major companies exploring reshoring initiatives are looking at projects that "could take anywhere from two to five years" to complete.

In the medical technology space specifically, reshoring presents both critical opportunities and unique challenges. From a geopolitical perspective, Adams believes it's essential for the United States to control its own production of vital medical supplies.

 

The COVID-19 pandemic exposed the country's vulnerability when it couldn't produce enough basic items like masks domestically. "Not being able to control our own destiny in regards to the items that our citizens would need—I look at it as a very big risk," Adams shared with NPR.

 

However, the economics of producing low-cost medical devices like Band-Aids or masks in the United States are challenging without "significant investment in automation." Much of that automation capacity has already been developed abroad, creating a chicken-and-egg problem for domestic production.

Building new medical manufacturing capacity is not an overnight process. For a ground-up factory, the industry is typically looking at "two to four years, depending on the entity that you're in and local permitting and state permitting and federal permitting and getting FDA approval."

 

All told, establishing new medical device manufacturing can take "upwards of sometimes half of a decade or more." This timeline reality means that while reshoring is a worthy goal, it requires long-term commitment and planning beyond any single policy initiative.

In the near term, prices for consumers will likely increase as companies adjust to new tariff structures. However, this pressure may accelerate positive changes in manufacturing processes.

 

"When your input costs go up, your process has to get more efficient and effective, and that's where the automation piece and trying to do more with less comes in," Adams explained. This is precisely where Adams Corp's expertise becomes even more valuable—helping manufacturers optimize their operations to maintain competitiveness despite changing economic conditions.

Despite these challenges, Adams remains "cautiously optimistic" about the future of American manufacturing and his business specifically. At Adams Corp, the team focuses on what they can control and believes that "there is an opportunity in every situation that you walk into."

 

The company's approach is to understand each customer's unique needs, recognizing that "different customers are going to have different needs based on where they procure things and how they go about building things." By serving as a resource to help navigate these complexities, Adams Corp aims to continue growing even in uncertain times.

The manufacturing landscape is undoubtedly changing, with new policies creating both challenges and opportunities. While reshoring manufacturing—particularly in critical sectors like medical devices—is a worthy goal, it requires realistic timelines, significant investment, and workforce development.

 

Adams Corp is committed to being part of the solution, helping customers navigate these changes through innovative automation approaches that increase efficiency, quality, and resilience. By focusing on what can be controlled and finding opportunities in every challenge, the company is confident in its ability to continue growing and supporting American manufacturing excellence.