Tariffs are shaking up how companies think about production. With rising costs and supply chain pressures, businesses are being forced to reconsider where and how they source their products. Domestic manufacturing and onshoring are becoming the go-to solutions to ensure supply chain security, keep prices competitive, and set up for long-term growth.

To get a deeper understanding of how tariffs are affecting the industry, we sat down with Jeff Tornow, President and CFO of Electronic Systems, Inc. (ESI), to chat about the current situation and what it means for electronics manufacturers.

When it comes to tariffs on imported electronics and components, it’s pretty simple: they drive up costs. For companies that rely on overseas production, tariffs mean higher import taxes, which quickly add up. Components like semiconductors, capacitors, and resistors—key pieces in electronics—can now cost up to 25% more due to these tariffs.

Some businesses may try to absorb these costs, but often that just means higher prices for the end consumer. As a result, many electronic components and electronic assemblies are becoming more expensive. For companies looking to avoid this impact, it’s time to rethink their strategy.

Tariffs can really throw a wrench into global supply chains. With shipping costs going up and delays becoming more common, electronics manufacturers are facing a lot of hurdles. Many rely on overseas suppliers for important parts, and these tariffs complicate the process, slowing things down and increasing costs.

One of the best ways to safeguard your supply chain and avoid these disruptions is to work with a U.S.-based contract manufacturer. By onshoring your production, you reduce the risk of these delays and get more control over your operations.

Tariffs might be presenting challenges, but they also create opportunities for U.S.-based manufacturers to step in and help businesses navigate the risks of relying on overseas production.

Here’s why reshoring to the U.S. is becoming such an appealing choice:

• Less Risk, More Reliability: Partnering with a domestic manufacturer can drastically reduce your reliance on overseas suppliers. That means fewer delays, fewer shipping issues, and less vulnerability to things like customs hold-ups or geopolitical risks. Keeping things closer to home is a safer bet.
• Faster Time-to-Market: Shorter shipping distances and faster transit times mean products get to customers quicker. This helps you respond faster to market demands. Plus, with more predictable production timelines, you can reduce excess inventory and stay ahead of the curve.
• Better Control and Visibility: When you work with a U.S.-based manufacturer, you get more direct oversight of your production process. That means you can better manage schedules, inventory, and quality control. You stay in the loop every step of the way, which gives you the confidence that everything is going according to plan.
• Cost Stability: Sure, labor costs might be a bit higher in the U.S. than overseas, but domestic manufacturing offers less cost volatility. By reducing your reliance on foreign suppliers, you shield your business from the unpredictable nature of tariffs, fluctuating exchange rates, and rising shipping costs. This creates a more stable, predictable cost structure, which can ultimately boost profitability.

At Electronic Systems, Inc. (ESI), we specialize in providing legendary service and flexible electronics manufacturing solutions right here in the U.S. With over 45 years of experience, we’re well-equipped to help you navigate the challenges of reshoring. Partnering with a trusted U.S.-based manufacturer like ESI means you get faster turnaround times, better quality control, and greater cost stability—all while supporting the U.S. economy.

The answer? Now. With tariffs on imported electronics components continuing to cause disruptions, reshoring is the perfect strategy to avoid these costs and challenges. Moving your production closer to home doesn’t just mitigate risks—it also gives you better control over quality, timelines, and costs.

If you’re looking to safeguard your supply chain, stay competitive, and contribute to the U.S. economy, reshoring is the way to go.

At ESI, we’re committed to helping your business succeed with reliable, high-quality domestic manufacturing solutions. If you’re ready to navigate the evolving landscape of tariffs and supply chain challenges, we’re here to help.

Contact us today to find out how we can support your transition to U.S.-based electronics manufacturing and set your business up for success in this ever-changing marketplace.