Home Industries Marketing & Media Quad sees some clients adjusting marketing plans ahead of tariffs resuming

Quad sees some clients adjusting marketing plans ahead of tariffs resuming

By
Ashley Smart
-
The Quad headquarters in Sussex.
The Quad headquarters in Sussex.

Sussex-based Quad, a global marketing experience company, is not expecting a substantial impact on its business due to tariffs. However, company leadership said Wednesday that tariffs could put “recessionary pressures” on its clients, leading to reduced spending on advertising and marketing, along with lower print volumes. For the first quarter of 2025, Quad reported a

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Ashley Smart
Ashley covers startups, technology and manufacturing for BizTimes. She was previously the managing editor of the News Graphic and Washington County Daily News. In past reporting roles, covering education at The Waukesha Freeman, she received several WNA awards. She is a UWM graduate. In her free time, Ashley enjoys watching independent films, tackling a new recipe in the kitchen and reading a good book.
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Sussex-based Quad, a global marketing experience company, is not expecting a substantial impact on its business due to tariffs. However, company leadership said Wednesday that tariffs could put “recessionary pressures” on its clients, leading to reduced spending on advertising and marketing, along with lower print volumes. For the first quarter of 2025, Quad reported a net sales decrease of 4% to $629 million compared to the same period in 2024. “While Quad’s supply chain currently has limited direct exposure to tariffs, we recognize our clients may be impacted to varying degrees,” said Joel Quadracci, chairman, president and CEO of Quad. Quad imports paper from Canada and books that are made at the company’s Mexican facilities and imported for clients in the United States. All of these products are compliant under the United States-Mexico-Canada Agreement. “Our procurement teams are in various stages of evaluating or reallocating sourcing options for the remaining items in our supply chain that are affected by tariffs,” said Quadracci. Less than 11% of the money the company spends on sourcing materials is impacted by tariffs. About 1% of that total includes goods sourced from China. Quad is seeing some retailers and catalogue customers begin adjusting their marketing plans based on tariffs. There is a currently 90-day pause on reciprocal tariffs in place that excludes goods from China. In some instances, clients are unsure if they can move product out of Vietnam ahead of President Trump’s tariff polices being re-started. In other cases, Quadracci says clients are simply unsure how to price products. “I think that a lot of our customers are very anxiously awaiting what develops in the tariff world,” said Quadracci. “My concern is obviously the same as everyone else. Does this lead to a rapid slowdown in the economy? Also, it’s really about the unintended dislocations that cause changes in how our customers act. I think as much visibility as we have, we haven’t seen the pullback that maybe some people would think would happen.” Quad re-affirmed its full-year 2025 guidance Wednesday. This includes a projected net sales decline of between 2% and 6%. "We will remain nimble and adapt to the changing demand environment while maintaining our disciplined approach to how we manage all aspects of our business," said Tony Staniak, chief financial officer of Quad. "We are reaffirming our 2025 guidance and are focused on driving long-term revenue growth by continuing to make strategic investments in innovative offerings.”

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