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Yahoo
11 hours ago
- Business
- Yahoo
Trump's tariffs are the ‘new normal' in global supply chains, expert says
As new 'reciprocal' tariffs imposed by the Trump administration are now in force on goods from more than 90 U.S. trade partners, navigating higher duties could be a permanent part of doing business, according to Vinny Licata, head of logistics at Fictiv. President Donald Trump signed an executive order July 31 to implement a wide range of country-specific tariffs that began on Thursday. 'Companies are seeing tariffs as the new normal,' Licata told FreightWaves in an interview. 'There were some pauses in orders earlier due to uncertainty, but now deals are being finalized, and orders are not being delayed as much. As we see more deals, that certainty will allow customers to understand the cost environment, so they can know the impact of all tariffs.' The slew of new import levies include 50% for goods from Brazil, 39% for Switzerland, 35% for Canada, 30% for China and Mexico, 25% for India, 20% for Vietnam and Taiwan, 19% for Thailand, 15% for Germany and Japan, and 10% for the United Kingdom. While U.S. tariffs are becoming more normalized for logistics professionals, the increased duties are having an impact on imports into the U.S., Licata said. Fictiv, founded in 2013, offers on-demand procurement services for custom mechanical components parts for the U.S. manufacturing industry. The company has production operations in the U.S., China, India and Mexico, with a total of 400 employees. 'Industries that could be most vulnerable to these tariffs are pharmaceuticals, smartphones, jewelry, textiles, and footwear,' Licata said. 'As tariffs become more normalized with all trading partners, we'll likely see every industry impacted in some way.' Goods from Mexico received a reprieve from the 25% tariff rate when U.S. and Mexican officials announced a 90-day extension to negotiate a long term trade deal on July 31. The 90-day extension means a 25% tariff rate will stay in place for Mexico instead of a 30% levy that would have started Friday. However, imported goods covered by the United States-Mexico-Canada Agreement (USMCA) were expected to remain exempt from tariffs. The White House's 35% tariffs on imports from Canada will also not be applied to goods that are compliant with the USMCA. Mexico was the top U.S. trade partner in June at $73 billion, according to Census Bureau data. Canada ranked No. 2 for trade with the U.S. in June at $58 billion, and China ranked third at $28 billion. Despite the Trump administration's new tariff policy, nearshoring of manufacturing to the U.S., Mexico and other parts of the Americas is still ongoing, Licata said. In November 2023, Fictiv opened a production facility in Monterrey, Mexico, aiming to offer more options for on-demand manufacturing services across North America. 'We feel nearshoring was underway over the last few years (due to COVID disruptions), and the tariffs are helping bring some manufacturing back. The Mexico and Canada deals will help accelerate this trend, but there is still a lot of uncertainty about how a deal with those countries will look,' Licata said. 'Mexico seems to be managing the negotiations more delicately, whereas Canada has been fairly aggressive with their stance. As a result, we're seeing Trump take a harder view of Canada. Depending on these deals, then we can see an acceleration in nearshoring if there are proven advantages for companies and more certainty over the longer term.' Licata said manufacturers looking to source suppliers in the current trade environment should keep an eye on 'total landed costs.' 'We're encouraging customers to stay focused on total landed cost, as true costs vary significantly across regions,' Licata said. 'Transparent cost data — including tariffs, transportation, labor, and manufacturing capability — empowers smarter sourcing, especially as trade policies remain unsettled. Tariffs aren't going away, and companies that understand the full cost picture will be better positioned to navigate uncertainty and gain a competitive edge.' The post Trump's tariffs are the 'new normal' in global supply chains, expert says appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
6 days ago
- Business
- Forbes
Building Resilience: Leveraging AI For Smarter Manufacturing
Russ Bukowski, President of Mastercam. Manufacturers are facing increasing pressure from geopolitical disruptions, trade conflicts and economic uncertainty. According to a 2025 report by Fictiv, a digital manufacturing and supply chain company, 96% of surveyed manufacturing and supply chain leaders indicated concerns about U.S. trade policies. Moreover, 91% of leaders are taking global friction into account when forming their long-term supply chain planning strategies, a five-point increase from 2024. Amid these challenges, many forward-looking companies are embracing digital transformation and using artificial intelligence (AI), automation and data-driven decision making to build more nimble, resilient operations. I've seen the potential impact of applying AI to manufacturing. My company recently introduced AI-powered Help and Command features to improve accessibility for newer computer-aided manufacturing (CAM) users in an effort to free programmers to focus on the most complex challenges. These streamline toolpath creation, reduce clicks and shorten learning curves, especially for newer users navigating powerful but complex toolsets. On a broader level, AI can deliver real-time insights for faster decision making, support a wide range of skill levels and automate knowledge distribution—ultimately helping organizations stay adaptive. From Legacy Systems To Labor Gaps As digital tools, data analytics and automation redefine production environments, many companies find themselves constrained by outdated systems. Manual processes and legacy training models are no longer sufficient. Many manufacturers are juggling multiple software platforms that generate tons of data. But if those systems don't talk to each other, that's a big problem. A fragmented setup requires users to manually transfer data, which wastes time, increases costs and leads to errors. From design to quality inspection and every step in between, data should flow seamlessly, allowing users to see the full picture without having to search for information across various platforms. Compounding the challenges facing manufacturing is the combination of a widening skills gap and an aging workforce. Manufacturers are still dealing with a major talent shortage. In fact, a study by The Manufacturing Institute and Deloitte found that the industry's talent gap "could result in 2.1 million unfilled jobs by 2030." As experienced professionals in the industry retire, they take decades of expertise with them. To address these challenges, manufacturers must prioritize knowledge transfer, invest in upskilling programs and embrace tech-forward systems. Additionally, manufacturers need to shift toward a fully integrated digital setup to optimize data workflows. Adapting To Customization And Supply Chain Disruptions AI enhances intelligent manufacturing by maximizing toolpaths for faster cycle times and reduced waste. This helps address one emerging trend that I've observed: Production volume sizes are decreasing as demand for customized parts increases. Unlike traditional mass production, where it's relatively straightforward to produce millions of identical units, producing thousands of slightly different parts is a challenging task. Machine learning algorithms can optimize production schedules and quickly adapt to design changes with minimal downtime. AI-driven quality control systems can also learn to detect subtle variations across different custom parts. Manufacturers must also be able to respond quickly to disruptions amid rising geopolitical risks and increasing supply chain volatility. AI models can forecast demand patterns, detect supply chain risks and help adjust inventory levels. The Case For Industry-Specific AI Tools When searching for AI solutions, manufacturers should seek those tailored to their specific industries. There are two key reasons why. For one, from my observations, general-purpose tools can deliver inaccurate results, which can have serious consequences, especially in industries such as aerospace and automotive, where inaccuracy can compromise safety. Additionally, industry-specific AI tools arguably have a faster learning curve for workers. When an AI solution is able to understand intent and provide suggestions in the context of a certain industry, workers can adopt and integrate the technology more swiftly into their existing workflows. Laying The Foundation With Clean Data AI is a critical enabler of operational flexibility, but it must be paired with strategic planning and a company culture that is ready to support change. Data quality is paramount. Clean, well-structured data is essential for reliable AI outcomes. The key to success is not trying to solve everything at once. Instead, manufacturing leaders should identify priority problems, refine their data strategies and build use cases gradually, ensuring each is rooted in a clear objective. Preparing models takes time, so patience is essential. Starting small allows teams to test, learn and measure what matters most to an organization. Using AI wisely also means investing in people and processes rather than just technology. Empowering workers with training and new skills to collaborate with AI strengthens the organization. Leaders should find a 'champion' to help drive adoption. Breaking down data silos and enabling platform integration enables AI tools to work optimally across the entire value chain. AI Is An Enabler, Not A Catch-All Solution As manufacturers face mounting pressure from trade tensions and geopolitical disruptions, they are rethinking traditional operational models. AI and automation are vital tools in this digital transformation, enabling greater efficiency, deeper insights and faster responsiveness to change. While AI offers powerful capabilities, it is not a one-size-fits-all solution. Its impact depends on thoughtful, strategic implementation aligned with specific business needs. AI is not a replacement for sound decision making, but rather a powerful enabler that can help manufacturers build more resilient, adaptive operations. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Fast Company
08-07-2025
- Business
- Fast Company
Tariffs: What you need to know
According to Fictiv's 10th Annual State of Manufacturing & Supply Chain Report, 96% of manufacturing and supply chain leaders say trade policies, tariffs, and ongoing global conflicts are impacting their long-term strategy. Right now, companies are facing all of this and more. Everyone needs guidance. The complexity of trade laws and frequent changes in tariffs—especially those impacting aluminum, steel, and automobiles—have left many companies uncertain about how to proceed. In many cases, these are companies with limited infrastructure to manage trade logistics independently. There also tends to be a lack of experience navigating trade regulations, which often pushes these firms to seek outside expertise. Like many of you, I've had to research the tariff issue and relied on our in-house experts for guidance as well. In this article, I'll share some tactics to help you navigate and mitigate tariffs moving forward. But first, the basics. Tariffs aren't one-size-fits-all. Depending on what's being imported, where it's coming from, and the goals of trade policy, different kinds of tariffs come into play. For manufacturers, knowing the differences can have a big impact, whether you're sourcing parts globally or trying to forecast costs and risks. Ad Valorem Tariffs: These are the go-to format for many tariffs. Ad valorem tariffs are calculated as a percentage of a product's declared value. Specific Tariffs: Instead of being value-based, specific tariffs charge a flat fee per unit, whether that's by item count, weight, or volume. These tend to show up on bulk goods or raw materials and can especially impact low-cost imports. Compound Tariffs: As the name suggests, compound tariffs mix both percentage-based and per-unit charges. Some tariffs aren't tied to standard pricing models, but serve broader trade or policy objectives. These often emerge during trade disputes or to level the playing field. Reciprocal Tariffs: Imposed in direct response to tariffs placed on a country's own exports. Retaliatory Tariffs: Aimed at pressuring another country by hitting them with targeted tariffs in response to perceived trade violations. Universal Tariffs: A blanket tariff rate—say, 10%—applied to nearly all imports from a specific country or group. These are typically used for strategic or political reasons rather than product-specific concerns. In 2025, much of the news has focused on using tariffs as a tool to strengthen U.S. manufacturing. Despite the challenges tariffs introduce, I'm optimistic that in some cases, we're in the process of seeing a resurgence of U.S. manufacturing. I'm also aware that while the idea of reshoring manufacturing to the U.S. is gaining traction, the process to make that happen is both complex and time-consuming. You can't change a supply chain or rebuild domestic capabilities overnight—especially in terms of labor, education, and automation. Take raw materials like aluminum: The U.S. currently has limited domestic production capacity compared to global leaders like China. These supply constraints could shape future policy decisions, particularly as the government investigates the security of strategic minerals under Section 232. But overall, I'm bullish on U.S. manufacturing and optimistic about what we can accomplish in the next 3-5 years. SMART STRATEGIES FOR TARIFF MITIGATION Regardless of where you choose to source your goods, minimizing tariff impacts involves thoughtful coordination across multiple business functions: supply chain logistics, manufacturing operations, and trade compliance. Several proven strategies can help mitigate some of these pressures. Optimizing Product Classification: Precise classification using the harmonized system (HS) code can help avoid overpaying duties or facing delays. Participating In Tariff Rebate And Exemption Programs: Refund mechanisms such as duty drawback offer relief when imported components are later re-exported as part of finished goods. Strategic Sourcing Of Materials: Another path to tariff reduction lies in sourcing raw materials or parts from countries with low or no tariffs for the destination market. Where possible, substituting high-tariff materials (e.g., steel, aluminum) with alternatives such as composites or less regulated metals can lead to significant savings. Geographic Diversification Of Manufacturing Operations: Adjusting the geographic footprint of production can shield companies from trade-related risks. Nearshoring production to countries with trade advantages or distributing assembly across multiple regions can limit duty exposure and maintain operational flexibility. Tariff rates vary significantly based on material type. Natural materials like wood, cotton, or leather often face lower duties compared to synthetics. Some governments also promote the use of sustainable or recyclable materials by offering preferential tariffs. Conversely, inputs such as steel, aluminum, and plastics may carry higher tariffs due to anti-dumping or national security measures. Understanding country-of-origin rules is key. Materials from free trade agreement-aligned countries may qualify for lower rates, provided local content requirements are met. By understanding and applying a range of mitigation strategies—especially those linked to material selection, geographic sourcing, and regulatory programs—manufacturers can enhance their global competitiveness and protect margins amid a volatile trade environment. IT'S THE SUPPLY CHAIN AFTER ALL Now more than ever, it's critical to examine your supply chain strategy. Many manufacturers built their supply chains over decades under the assumption of stable, tariff-free trade in regions like Mexico and Canada. Those assumptions no longer hold. And reconfiguring those networks demands not only financial resources but also long-term planning. A new generation of manufacturing and supply chain solutions is emerging to meet these needs. Powered by artificial intelligence and supported by a global footprint of manufacturing centers, these solutions provide a comprehensive end-to-end approach to product development, from initial prototyping through full-scale production and final delivery. If you've already built a multi-country manufacturing network, you're in a good position to weather today's volatility. With a globally diverse, agile supply chain already built out, it's easier to pivot production between countries in response to changing trade policies. With tariffs not applied uniformly across countries, this agility has become a competitive advantage. In other words, there's incredible value in 'China plus two or more.'
Cision Canada
07-07-2025
- Business
- Cision Canada
Fictiv Receives Frost & Sullivan's 2025 Global Supply Chain for Custom Mechanicals Technology Innovation Leadership Recognition
Recognized for its innovative approach to global supply chain orchestration, delivering customer value and enabling sustainable growth potential across the custom mechanicals sector SAN ANTONIO, July 7, 2025 /CNW/ -- Frost & Sullivan is pleased to announce that Fictiv, a global manufacturing and supply chain company, has received the 2025 Global Supply Chain for Custom Mechanicals Technology Innovation Leadership Recognition for its outstanding achievements in technology innovation, digital orchestration, and customer value creation. Frost & Sullivan evaluates companies through a rigorous benchmarking process across two core dimensions: strategy effectiveness and strategy execution. Fictiv excelled in both, demonstrating its ability to align strategic initiatives with customer and market needs while executing with precision, agility, and global consistency. This recognition also highlights Fictiv's consistent leadership in delivering scalable, technology-enabled solutions that strengthen global manufacturing networks and advance supply chain resilience in a dynamic, digitally transforming industry. "A key differentiator for Fictiv is its team of experts across regions with local expertise, supplier oversight, quality assurance, and regional compliance—all in one seamless experience," says Sankara Narayanan, Industry Director at Frost & Sullivan. "Despite the shift towards digitization, the supply chain industry needs to rely on human capital, and Fictiv makes sure to back up its advanced technology with a highly experienced team of experts." Long-Term Growth & Innovation Guided by a long-term growth strategy anchored in digital infrastructure, supply chain optimization, and customer-centric innovation, Fictiv has demonstrated an exceptional ability to adapt and lead in a rapidly evolving landscape. The company's investment in integrated enterprise software, AI-driven automation, and strategic talent deployment has enabled it to scale across complex, globally distributed markets, ensuring fast, flexible, and transparent delivery of custom mechanical parts to enterprise customers. Innovation remains central to Fictiv's approach. Its digital platform orchestrates every aspect of the custom manufacturing supply chain—from design guidance to quoting and material sourcing to quality assurance, BOM support, and global fulfillment. Fictiv empowers innovators to move rapidly from prototyping to full-scale production while enhancing supply chain resilience and agility. This recognition also reflects the transformative impact of Fictiv's integration with the MISUMI Group, creating a unified global solution that represents the future of both custom and standard mechanicals. By combining Fictiv's advanced digital orchestration platform with MISUMI's unmatched catalog of configurable components, 22 manufacturing sites, 20 logistics centers, and 66 sales offices worldwide, the partnership delivers a seamless, single-source experience for sourcing mechanical parts at scale. With joint manufacturing hubs across India, Mexico, China, and the U.S., the combined solution enables faster product development, simplified logistics, and greater supply chain resilience. Together, Fictiv and MISUMI are redefining global supply chains—delivering the precision, speed, and flexibility today's innovators demand. "We're honored by this recognition and believe it's a testament to our commitment to simplify sourcing for our global customers," says Dave Evans, Fictiv Co-Founder and CEO. "It's an honor to work with today's greatest innovators who are building the next satellites, robotics, medical devices, clean energy solutions, and electric vehicles." Commitment to Customers Fictiv's unwavering commitment to customer experience further strengthens its leadership position in the market. The company delivers end-to-end transparency and control through real-time visibility while embedding regional support and engineering expertise at every stage. Its supply chain solutions address manufacturing planning, capacity constraints, and engineering-grade material availability, easing bottlenecks and accelerating time-to-market for complex mechanical components. Frost & Sullivan commends Fictiv for setting a high standard in competitive strategy, execution, and market responsiveness. The company's customer-first culture, enterprise-class program management, and robust innovation are transforming the future of the global supply chain for custom mechanicals—delivering measurable outcomes and enabling customers to scale innovation with confidence. Each year, Frost & Sullivan presents the Global Supply Chain for Custom Mechanicals Technology Innovation Leadership Recognition to a company that demonstrates outstanding strategy development and implementation, resulting in measurable improvements in technology, customer satisfaction, and competitive positioning. It recognizes forward-thinking organizations that are reshaping their industries through innovation and growth excellence. Frost & Sullivan Best Practices Recognitions honor companies in various regional and global markets for demonstrating outstanding achievement and superior performance in leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analyses, and extensive secondary research to identify best practices in the industry. About Frost & Sullivan For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders, and governments navigate economic changes and identify disruptive technologies, megatrends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion. Contact: E: [email protected] About Fictiv Fictiv, part of the MISUMI Group, is a global manufacturing and supply chain company that enables organizations to scale globally without the typical barriers of cost, complexity, and risk. By leveraging Fictiv's four global manufacturing centers in India, Mexico, China, and the U.S., companies can access high-quality production, optimize supply chain logistics, and mitigate supply chain risk—ensuring they can move from prototype to full-scale manufacturing with speed and confidence. To date, Fictiv has delivered more than 35 million commercial and prototype parts for early-stage companies and large enterprises alike, helping them innovate faster, free up precious resources, and drive profitable growth.
Yahoo
11-06-2025
- Business
- Yahoo
Fictiv Launches Large-Scale CNC Parts Manufacturing
Trusted global supply chain manufacturer now offers large-part CNC machining SAN FRANCISCO, June 11, 2025 /PRNewswire/ -- Fictiv, a global manufacturing and supply chain company, announced the launch of its Large Part CNC Machining Services, enabling production of custom CNC parts up to 34 feet long (5X larger than the competition) with industry-leading tolerances, fast turnaround times, and robust global supply chain support. With growing industry demand for large-scale precision components—especially in aerospace, robotics, industrial machinery, and energy generation—Fictiv's expanded capabilities offer unmatched scale, speed, and flexibility. This announcement marks another major step in Fictiv's mission to simplify sourcing and accelerate innovation for complex parts, assemblies, and programs worldwide. Fictiv's large CNC machining services include CNC milling, turning, jig boring, laser cladding, honing, grinding, and heat treatment. Our facilities are equipped with hoists, robotic tending, pallet systems, and gantry-style CMMs with up to 60-ton overhead crane capacity. Materials supported include aluminum, stainless steel, tool steel, carbon steel, copper, ABS, and Delrin. Fictiv's large-scale CNC machining capabilities include: Size & Scale: Custom CNC parts up to 10,500mm (34 ft) in length, manufactured and inspected per certified quality systems. Speed: Lead times as fast as 10 days (for select parts). Accuracy & Precision: Tolerances as tight as 0.007", with advanced inspection (Gantry CMM, 3D scanning, NDT). Certifications: ISO 9001:2015 QMS, AS9100D certified facilities, and compliance with ASME, ASTM, MIL, and AWS standards. Integrated Supply Chain: End-to-end logistics, global sourcing, hardware installation, and assembly. Velentium Medical is a leading contract design and manufacturing organization with a deep background and focus on medical device innovation and manufacturing. "With demand rising in our industry, we needed a partner that could handle large-scale precision parts without slowing us down," said Matt Hanks, CEO at Velentium Medical. "Fictiv's expanded CNC capabilities deliver the scale, speed, and flexibility we rely on to stay competitive in a fast-moving market." Industry Applications: Aerospace: Structural components, engine mounts, fuselage frames Robotics: Frames, arms, and end-of-arm tooling Heavy Equipment: Brackets, housings, booms, and support structures ClimateTech: Wind turbine hubs, energy storage frames Energy Generation: Subsea equipment, pipeline components "Our new large-format CNC capabilities, unlocks an entirely new category of parts for our customers," said Dave Evans, Co-Founder and CEO at Fictiv. "This allows engineers to move faster, build bigger, and manufacture with confidence—knowing every part meets exacting specifications." Fictiv combines global engineering expertise across four manufacturing centers in the U.S., Mexico, India, and China with its advanced supply chain platform to deliver end-to-end solutions, including design guidance, supplier selection, rapid prototyping, strategic sourcing, manufacturing planning, production, assembly, quality assurance, and logistics, allowing enterprises to seamlessly scale from prototype to full production. Fictiv is trusted by over 5,000 leading companies to deliver high-quality components with unmatched precision and reliability. For more information about Fictiv and its CNC machining solutions, visit About FictivFictiv is a global manufacturing and supply chain company that enables organizations to scale globally without the typical barriers of cost, complexity, and risk. By leveraging Fictiv's four global manufacturing centers in India, Mexico, China, and the U.S., companies can access high-quality production, optimize supply chain logistics, and mitigate supply chain risk—ensuring they can move from prototype to full-scale manufacturing with speed and confidence. To date, Fictiv has delivered more than 35 million commercial and prototype parts for early-stage companies and large enterprises alike, helping them innovate faster, free up precious resources, and drive profitable growth. Media Contacts:FictivJennifer Shambroom, 5WPRLexi GlicksmanFictiv@ View original content to download multimedia: SOURCE Fictiv
