Outsource packaging helps soften tariff increase

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Versatile Packagers offers contract packaging for manufacturing tariffs

Companies and organizations in a variety of industries are facing an unknown when it comes to recently imposed tariffs. While the tariff increase might seem scary, for many industries, it could be a good thing.

For instance, manufacturing tariffs, including aluminum tariffs, could encourage both workforce development and job training. A new aluminum mill, slated to be built in Ashland, KY, is a poster-child for the potential benefits of the tariff increase. The new mill could create over 500 permanent positions with a starting salary of an estimated $65,000 per year.

The new mill isn’t the only example of the positive impact of increased tariffs on the manufacturing industry. U.S. Steel also announced it would restart its steel-making facilities and a blast furnace in its Illinois plant, all due to increased tariffs. Alcoa has also announced it will be reopening an idle smelter in Indiana. Many other manufacturers are taking similar steps in reopening and opening new mills and factories in light of the tariffs.

However, not all manufacturing companies know how to react to the tariff increase. Thankfully, they don’t have to go at it alone. Contract packagers, like Versatile Packagers, are a great resource when navigating new tariffs.

Versatile Packagers offers a wide selection of contract packaging services in addition to warehouse space for product storage, fulfillment and distribution. Versatile Packagers is equipped to meet the ever-changing market condition and demands, offering individualized solutions for each company’s specific needs – even those required to combat high tariffs through specialized product assembly.

Some companies are meeting the tariff increase head on by assembling products inside the U.S. while globally sourcing components. For example, Element Electronics, one of the biggest and most well-known names in electronics, have some of the cheapest television sets on the market, even though they’re actually assembled in Winnsboro, South Carolina.

For product assembly, Versatile Packagers possess the technology, warehouse space and manpower to assemble your products right here in the United States to help you reduce costs accrued from the tariff increase.

Upcoming tariffs are bound to change the manufacturing game, but thanks to contract packagers such as Versatile Packagers, their effects don’t have to be astronomical. Companies can help control costs by globally sourcing components and then assembling products inside the U.S. with the help of contract packagers, keeping production timely and efficient.

If you are curious about contract packaging and other storage and warehousing solutions, give the experts at Versatile Packagers a call.