Stanley Black & Decker Prepare for Tariffs

With potential changes in U.S. tariff policies on the horizon following the recent election, giant toolmaker Stanley Black & Decker has taken proactive steps to stay prepared. 

The company has created an in-depth strategy using simulated scenarios, with plans for production shifts, product price adjustments, and more engagement with lawmakers.

Preparing for Tariff Hikes

Stanley Black & Decker began planning for likely tariff changes months before the election, with its most recent related meeting taking place on October 29.

By running simulations and creating a strategic playbook, the company is making sure that the impacts that any increased tariffs could have on its supply chain are kept to a minimum. This is particularly important if the tariffs on Chinese imports rise.

Shifting Away From China Production 

In anticipation of the next administration’s increased tariffs on goods imported from China, Stanley Black & Decker’s thorough two-year strategy includes potentially relocating parts of its supply chain.

To reduce dependency on China, the company is looking into moving its production to Mexico or other areas in Asia. The company’s CEO, Don Allan, shared that moving back to the U.S. is unlikely due to both the higher costs and limited labor availability. 

Price Adjustments 

Higher tariffs will likely mean that Stanley Black & Decker will have to raise some of its product prices, but the company still wants to keep its offerings affordable for consumers. 

The toolmaker says that any price increases it will have to make will happen in a measured way to allow customers to adapt to the new price points. Allan noted that while they can prepare for cost increases, putting them in place depends on the exact tariff policies and timing.

Liaising with Policymakers

Another way Stanley Black & Decker is preparing for the tariff hikes is by building its relationships with policymakers. The company is focused on educating politicians about the impact of tariffs on U.S. manufacturing, which includes supply chain challenges.

The company’s goal is to convince the higher-ups to take both consumer costs and industry stability into consideration when enforcing these new laws.

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