While some manufacturers have already increased prices to deal with the rising costs of goods caused by President Trump’s tariff announcements,
Sentry Equipment is taking a more cautious approach.
The Oconomowoc-based manufacturer provides equipment and systems used to sample water, steam, gas, liquids, slurries and bulk solids.
About a quarter of the company’s business is being affected by tariffs, according to
Rich Gaffney, vice president of commercial operations at Sentry Equipment.
Operating in about 50 countries, Sentry Equipment relies heavily on its sales representatives across the globe. Leading up to last November’s presidential election, the company decided to stay the course and not make any huge changes in operations.
A lack of detail behind some of President Trump’s tariff announcements makes planning any operational changes difficult, Gaffney said.
“We have open communication with our contracted rep and agents, but there hasn’t been a ton of actionable (steps) yet given the volatility of everything,” he said.
Most of the company’s supply chain is located within the United States, so that means Sentry Equipment isn’t seeing a drastic increase in price when sourcing goods. What has changed, however, is the time it takes to receive those goods once they’re ordered.
“A typical lead time is between six and eight weeks,” said Gaffney. “We’ve seen times more than double.”
Sentry Equipment conducts a large portion of its business within the European Union, South Africa, Central and South America, Mexico, and Canada. If trade agreements can be reached soon with countries in those regions, Gaffney believes the tariffs will be “just a little blip on the radar.”
Sentry Equipment also does some business in China, which could be next to impossible to maintain if President Trump’s tariff plan remains in place as is.
“Commerce for us in China is going to be non-existent for the foreseeable future unless something major changes there,” said Gaffney.
The cost of doing business with the tariffs both on imported and exported goods is simply too high, he explained.
“Something that would have cost $100 two months ago now costs somewhere around $250,” Gaffney said. “The whole market is going to have to recorrect itself for the price expectation, and nobody has found that home yet.”
While some parts of the business are strained, the boom in construction for data centers is a bright spot for Sentry Equipment. The company’s power generation segment is seeing growth as the plants that power these data centers come online.
“With tariffs, some components could be more difficult to get,” said Gaffney. “I don’t know if that’s going to hit the pause button or not. There’s some frustration, because there isn’t any trendable (data).”
Sentry Equipment has refrained from making any “sweeping” price increases so far due to ongoing uncertainty.
The company is also maintaining a 30-day window for quotes issued to clients to make sure pricing is accurate, and to protect the business.
“I’m not a big fan of saying something and then having to pivot later,” said Gaffney. “I’d rather make the correct statement. Hopefully, in the next 30 to 60 days, we’ll have a better handle on what’s happening.”
If there isn’t clearer guidance from the White House related to tariffs and their longevity within that timeframe, Sentry Equipment will have to make pricing adjustments to make sure the company “doesn’t get pinched,” Gaffney explained.
Overall, he’s seeing more clients remain in a holding pattern rather than expediting any large-scale projects or ordering. Businesses are waiting to see what comes after the 90-day pause on tariffs to make any concrete plans.
“I think there’s still some optimism with so many parties at the table wanting to discuss a longer-term trade agreement,” said Gaffney. “We haven’t seen a spark in buying, which is confusing, because typically we would see something like that.”
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