How Food Manufacturers Are Staying Agile in an Era of Tariff Uncertainty: Expert Insights

As global trade shifts with changing tariff policies, U.S. food manufacturers are adjusting quickly to manage costs and supply chain challenges. Recently, industry experts discussed these trends during a virtual event called the State of Innovation in Food Manufacturing.

Key players, like Amy Haigler from McCormick & Co. and Daniela Vonghia from Del Monte Foods, shared insights on how their companies are navigating these uncertain times. On the same day as their discussion, President Trump announced a pause on most tariffs, creating a 10% baseline tariff, except for China, which faces a hefty 125%.

Haigler mentioned, "Every day, even in the last hour, we have news on tariffs that could affect our supply chain." She stressed the importance of agility in operations, particularly when dealing with the unpredictability of trade. McCormick, a leader in spices and flavors, operates worldwide with a significant presence in North America, Europe, and China, having 28 manufacturing facilities globally.

To stay competitive, McCormick relies on a diverse network of suppliers for over 20,000 raw materials. This flexibility allows them to adjust their products based on what’s available. Del Monte Foods, recognized for its canned fruits and vegetables, is also adjusting its sourcing while preparing for possible disruptions.

Vonghia highlighted that Del Monte is engaging in "scenario planning," making data-driven decisions to avoid potential pitfalls. Companies are increasingly turning to automation and artificial intelligence for efficiency. However, they must ensure that their data is accurate and current, as poor information can derail efforts to modernize.

Tancredi, another expert, cautioned against making drastic changes to supply chains too quickly. He advised businesses to be thoughtful about their strategies as the landscape continues to evolve. Companies should look for ways to offset costs without rushing into decisions that might soon become obsolete.

Another effect of tariffs is the rising cost of building materials. Warehousing costs for logistics providers have already increased by 12% since last year, reaching about $9.30 per square foot, according to a survey by WarehousingandFulfillment.com. These rising costs, paired with tariffs, can hinder supply chain growth.

As the trade environment evolves, manufacturers need to remain adaptable. By leveraging their supplier networks and embracing technology, they can better respond to the ongoing shifts in the market.

For more insights, you can refer to studies from trusted sources like WarehousingandFulfillment.com.

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