Tariffs (CONT’D FROM PAGE 28)
Board Converting NEWS INTERNET DIRECTORY
In regards to potential mitigation strategies, I would not recommend implementing any strategy that save you money without having somebody knowledgeable in the room. It doesn’t have to be a consultant or attorney. You might have somebody internally who knows the regula- tory and legal environment for customers. But companies should be thinking about value. Typically, machinery would have been bought at a sin- gle price, and the supplier was going to provide some sup- port in the United States, whether it’s assembly or set up or configuration, training, any software installation — that might have just been part of one price. And so unbundling those services that are happening in the United States from the price makes it so you pay less tariff, assuming that you are using that price to clear customers to begin with. So now a million dollar piece of equipment may have other value in the contract that’s worth separating out and making it a separate contract, different from the purchase of the machinery. As the machinery becomes more advanced, software may be installed overseas, and there’s significant value in the machinery for that software. What we’re working on with companies is, and it’s not always easy, is to install and configure the software in the United States and unbundle the value of the software that would have been built into the purchase price of the machinery. We’re really squeez- ing. Anything that we can do to attack that custom’s value. Navigating Tariff Classification There’s a whole host of other strategies. Sometimes, when we talk about tariff classification, you might have a finished machine that is classified in a certain way and subject to certain tariff. But what happens if you break it down into different pieces? What happens if this piece is from Germany and this piece is from China and this piece is from Taiwan? If I combine them all together, are they German origin? And that’s advantageous to me, even if it was assembled in China. If I ship them separately, is that cost advantage to me? These are things that companies should be continuously thinking about as they’re out there in the operating en- vironment. If you do own machinery manufacturing over- seas, or it’s a sister company or some joint venture, that opens the door for planning around pricing. We discussed how you can unbundle price for services, for software, for other items. But how can you plan on pric- ing? If the money is ultimately going into the same pocket, is there a way to plan the pricing and pricing arrangements so that you lower the value when it crosses the border, but profitability is still split in the same way? In conclusion, we need to start thinking about tariffs as a regular occurrence and think about how to include them into contracts, that cost-sharing provision. So if I commit to an order; we need to decide how to share the risk of tariffs going up or down. Tariff policies have created lots of ques- tions, and we're still figuring out the answers.
OHIO BLOW PIPE/ADVANCED AIRSYSTEMS www.obpairsystems.com For 85 years the Ohio Blow Pipe company and its whol- ly owned subsidiary, Advanced Airsystems, have provided the corrugated and folding carton industries with systems and products to process scrap. We engineer, fabricate, in- stall, service, provide system audits, and offer a wide range of scrap systems, dust collection systems and products to include cyclones, under roof AIR-SCREEN™ systems, pit belt systems, CLEANAIR dust collectors, Mist-Clone™ dust control systems for vacuum feeds, material handling fans, ductwork, switch valves, airveyors, balers, and shredders. OMP www.omp.com OMP helps companies facing complex planning challenges to excel, grow and thrive by offering the best digitized sup- ply chain planning solution on the market. Its Unison Plan- ning concept has a unique approach. It handles all supply chain planning challenges in a unified way, synchronizing all planning stages, horizons, functions and roles. Hundreds of customers run OMP’s cloud-based solution to generate more value by making informed decisions. OMP invests one out of every three dollars earned into innovation.
PAPER AND DUST PROS, INC. www.paperanddustpros.com
We custom design, install and service air conveyed scrap and dust collection systems. Our unique APS® is smaller, lighter, and more reliable than current cyclones. Contact us to learn how the APS® System can enhance your operation.
PROFERO SYSTEMS, INC. www.ProferoSystems.com
Profero Systems the leader in double facer heating and traction section conversions and performance enhancing products. Featuring products from Contact Bars and Com- pensating Rolls to New Glue Machines and Double Facers. GF PUHL www.gfpuhl.com GF PUHL designs, manufactures and installs air conveyed scrap & dust collection systems for the packaging and cor- rugated industries. With 42 years of experience, USA and In- ternational. We offer below or above roof systems featuring cyclones OR screen separators with real time pressure bal- ancing for optimal dust control. High efficiency cyclones for sheet transfer exhaust systems eliminate water consump- tion and deliver dust directly to compactor or briquetter for low maintenance, long term sustainability and reliability.
QUEST7, INC. www.Quest7.us
Quest7, Inc. is focused on being a leading manufacturer and distributor of critical parts and materials required in the cor- rugated box industry. Our commitment of “Bringing the Best to You,” reflects the level of quality and customer response in what we do every day.
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November 10, 2025
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