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Markets hate uncertainty—and nothing signals uncertainty like a spike in the Volatility Index (VIX), or Wall Street’s “fear gauge.” Last week, with the White House rolling out escalating tariffs on imports from a growing list of countries, the VIX soared to highs not seen since the early days of the COVID-19 pandemic, and before that, the 2008 financial crisis.
There's more than financial investments at stake, too. The volatile market sends a clear signal that the global supply chain, along with strategic sourcing and pricing strategies, are about to be tested. Again.
For U.S. businesses, this shift means one thing for sure: MRO costs are going up. And if your supply chain isn't built for flexibility, those price hikes could hit very soon.
At NorthSky, Adaptability Is in Our DNA
From the outset, we’ve known that supply chain disruptions are an inevitability. We entered the market with a unique, nimble business model designed to quickly adapt to shifting demands, no matter how many times the rules change.
Each time new tariffs are announced, it resets the game. But here at NorthSky, we’ve built a team that knows how to play—and win—no matter the score.
How Are Tariffs Reshaping the MRO Market?
When tariffs increase, so does the cost of importing goods—especially from countries like China, Vietnam and other common players in industrial sourcing. With many MRO suppliers, these cost hikes will trickle down to you, the customer, in the form of higher prices and longer lead times. Whether that’s truly a trickle or a full-scale cascade remains to be seen.
What’s more, as domestic manufacturing ramps up in response to rising import costs, demand for industrial supplies is set to spike. This means more pressure on already fragile supply chains and added urgency for procurement teams to find cost-effective alternatives—fast.
How Is NorthSky Navigating the Storm?
Unlike most traditional suppliers, we're built to adapt seamlessly to new rules, needs and requirements. It’s in our DNA. Here's why:
›› We cut out unnecessary links in the supply chain. No trading companies. No brand markups. Forget third-party wholesalers. Each extra layer adds 20-40% to your cost. We don’t want that. So we’ve eliminated them.
›› We partner with manufacturers around the globe, with flexibility baked in. We don’t rely on any one country. Armed with decades of MRO industry experience, our product development experts work directly with a strategic, carefully curated selection of global manufacturers as committed to quality as we are.
›› We stay light on our feet. We’re not afraid to pivot—quickly, and without ever sacrificing quality. When tariffs shift, we'll immediately restructure our country-of-origin strategy to avoid price hikes and stay one step ahead of the curve.
What Does It All Mean for You?
For businesses of all shapes and sizes trying to stay lean while keeping teams safe and operations running smoothly, the next few months will be critical. Rising prices for MRO supplies, from essential PPE to power tool accessories, will force many companies to reconsider their suppliers.
It's an opportunity, for you and for us. There's no time like the present to:
1. Secure up-to-date price benchmarks backed by data
2. Evaluate your supply chain flexibility and capacity to adapt
3. Partner with suppliers offering reliable quality at better margins
NorthSky is here to help you navigate volatility, overcome uncertainty and, ultimately, grow your business. Don’t wait for price hikes to hit—request a cost comparison today.
