Tariffs have been a hot news topic lately, so many organizations are worried about how tariffs will affect their bottom lines. Rest assured that the New Source Corporation’s aluminum extrusion supply remains stable and unaffected by current tariffs. Here’s a closer look at how we keep our supply chain running smoothly.
How New Source navigates cost fluctuations
New Source is always monitoring industry changes and preparing stocks to help their customers adapt, whether it be amid tariffs, supply chain disruptions, or economic fluctuations.
“We expect there to be minimal impact on resources and operations,” said Stephanie Barron, Director of Marketing & Customer Relations. Our company keeps a substantial amount of excess inventory on hand to meet customers’ unexpected needs like emergency repairs or supply disruptions.
Domestic sourcing has always been a priority for our company, so our materials also meet domestic and DFARS (Defense Federal Acquisition Regulation Supplement) compliance. This means the metals are sourced in the U.S. or an approved country.
Planning ahead during times of uncertainty
The tariffs’ effects on aluminum extrusions is negligible. Aluminum extrusion pricing is based on open market value, and tariffs are currently having little to no impact overall. Vendors are also not passing along tariff costs at this time, which reinforces price stability for our customers.There could potentially be pass-through costs on some flat-rolled products, however. The best way to counter such costs — and minimize spending on materials in general — is to plan ahead.
“The more customers plan ahead, the better price point we will be able to give them, and the more we’ll be able to negotiate with our supply partners,” Barron explained.
Even if tariffs do not impact the pricing of specific materials, they could still indirectly have an effect on the industry as a whole, however. For example, tariffs can lead to fewer plane orders, higher production costs, and supply chain disruptions further down the line.
It is important to remember that while the tariff landscape may be in flux, it’s more useful to take proactive steps than to panic. With New Source, you can order certain parts and programs as far into the future as 2030.
“Keep calm, plan ahead, and keep steady because the market is always changing,” said Barron. “And given the current political climate, we can’t predict the future. We can only prepare by committing to our stocking strategy that protects customers from supply disruptions and price changes.”
Work with a trusted partner
During periods of unpredictability, it’s essential to work with a supplier you can trust to manage inventory, work directly with manufacturers, and customize stocking to your needs. New Source has been a raw materials distributor of high-quality metallic materials for the aerospace industry for more than three decades, providing customers with reliable materials, service, and turnaround.
We always have an eye on events and factors affecting the industry, and we’re currently monitoring the tariff situation. We don’t anticipate any disruptions or obstacles for current or future orders for our main product type. As always, we’re here to answer customer questions and keep you informed.
If you have questions about our aerospace aluminum extrusions or other materials, download our line card or contact one of our experts today.