The Trump administration is implementing a 25% tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Billboard Insider asked some out of home industry suppliers what they think this means for costs.
Jason Mallory, General Manager, Lindmark Steel
The price of steel is on an upward trend, while availability remains relatively unchanged. There have been price increases of up to $100/ton for certain materials and we expect that trend to continue from some national suppliers in response to the tariffs. The steel industry largely operates on the FIFO (First In, First Out) cost basis, so it could be some time before we see the full effects of the tariffs on pricing. As one of the Lindmark Companies, we have a committed partnership with Lindmark Billboards and their robust organic growth program. Having this dedicated building schedule as a backdrop and our long-standing business relationships with our suppliers allows us to make strategic purchases of materials in extremely large quantities. For example, over the past year we have been building off a bulk purchase of large diameter pipe that consisted 27 truckloads, and we were able to pass those savings on to all our customers.
Jon Odom Productivity Fabricators
I have not seen any increase yet. I am sure I will when my suppliers see an increase. The steel mills have increased $1.00 a ton on the ingot, that is used to produce the plates, angles, channels , & beams. In the past, some increases have been rescinded, but if the tariffs stick these possibly will not.
Matt Schulze, Selective Structures
Steel pricing on small mill items has begun to rise. We anticipate further increases as the existing inventories and orders made prior are depleted. Mill rollings are already starting to be pushed out. As demand increases on domestic mills, pricing and lead times will follow.
Colin Huber, Daktronics
Even though we build all of our digital billboards here in the US, we do rely on some of the raw materials to be supplied from overseas suppliers. Over the past several years, we have worked to mitigate the impact of tariffs on components from China to a large degree, but not completely. The recent tariff changes do have an impact on some of the components we use to manufacture our digital billboards.
Brian Kline, Reliable Electric Products
Excellent question. Fortunately, Holophane is a US based company with final assembly and manufacturing here in the US. At this point in time, we do not foresee any significant impacts on the LED fixtures. We are however being affected with tariffs on the ratchets coming from overseas.
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