Page 26 - Lighting Magazine November 2018

The Tariff Tango
“Most o shore manufacturers have elected to absorb the majority of the tari cost imposed to date, so I think the long-term impact of the tari s has yet to reveal itself.” —Nancy Sho , Hammerton
competition is made in the USA also, so any e ect would be minimal,” he states.
Since the tari s only took e ect in September, many believe it’s too early to realistically predict the fall-out. Nancy Sho of Utah-based Hammer- ton comments, “Most o shore manufacturers have elected to absorb the majority of the tari cost imposed to date, so I think the long-term impact of the tari s has yet to reveal itself. If the 25- percent tari hike goes through as planned, we’ll see a di erent story in 2019. Regardless, our cus- tomers are thrilled to know that it’s business as usual at Hammerton, since we are [as of yet] unaf- fected by the tari s.”
Just as with many domestic manufacturers, the hospitality and custom sector should remain the same, if not increase. “Many Hammerton clients
have told us that they are now looking to source domestically wherever possible for a variety of reasons. Cost is only one part of the equation for them, and for many it’s not the most important,” Sho says. “There is huge demand for a level of quality and service that o shore manufacturers can no longer provide at a competitive price point.”
Regarding the impact of tari s, Barbara Restin, Vice President of Arizona-based Ultralights Light- ing comments, “I cannot predict the future, but I will tell you my main concern is that the trade wars with China and other countries have the potential of destabilizing the U.S. economy, which could then ultimately result in less business for all American manufacturers.”
Then again, the opposite may come true. “If the economy continues to grow with the tari s, we may become more competitive with o shore prod- uct from a price — and also from a production time — standpoint,” Restin states. “For the hospitality sector, we are sometimes able to edge out o shore product with our turnaround times, reasonable price points, and quality for stock and modi ed product. We don’t anticipate that changing.”
As the start of the new year comes closer, the consensus is that the industry will be holding its collective breath and bracing for the worst. 
24 enLIGHTenment Magazine | noveMber 2018
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