Almost overnight, new U.S. tariffs have quickly reshaped the business landscape, creating major challenges for companies dependent on global supply chains. For most of these companies, the tariffs prompt a complete reevaluation of strategies and supply chains.
These recent events make it clear that companies must remain adaptable to survive. In one example, PERGOLUX, the leading provider of louvered pergola kits in the US, is proactively responding to these changes with strategic planning and innovative agility.
Minimizing the immediate impact of new tariffs with proactive planning
Even before the announcement of new international tariffs was made, PERGOLUX had already begun the strategic shift of its production away from China. The company’s foresight was crucial in minimizing the immediate impact when the tariffs came into effect.
Despite the company’s insightful action, the rising costs of essential materials such as aluminum, motors, and electronics still posed challenges. In response to the mounting obstacles, the company chose flexibility and adaptation rather than panic.
To tackle these financial strains, PERGOLUX chose not to simply absorb the extra costs or pass them on to consumers outright. Instead, they concentrated on diversifying their supplier base, strengthening partnerships in countries like Vietnam, and optimizing their logistics processes. This approach has been key in maintaining stable pricing despite external cost pressures.
The value of flexibility
In the face of uncertainties brought on by new tariffs, adaptability became PERGOLUX’s most indispensable asset. “Flexibility is critical in this situation,” says Tim Heneveld, Country Director for PERGOLUX in North America. “We are always actively securing better deals with our suppliers, refining our logistic operations to eliminate unnecessary expenditures, and consistently working to prevent potential future disruptions.”
Amid the turbulence caused by new tariffs, PERGOLUX’s adaptability helped the company remain competitive while building a foundation for long-term growth. The company swiftly optimized its logistics by scrutinizing its entire supply chain for inefficiencies and bottlenecks. Streamlining these processes enabled PERGOLUX to quickly save costs and maintain reliable distribution networks.
With an eye to the future, the company also worked to forge strong partnerships with suppliers. These relationships are expected to provide long-lasting leverage in negotiations and further fortify the company’s supply chain.
Meeting the new tariffs with measured pricing adjustments
In most cases, tariffs necessitate price changes, but PERGOLUX’s approach to this problem has been carefully measured. Instead of reacting in a way that could alienate customers, the company opted to implement gradual adjustments when necessary. This cautious approach ensures stability and preserves consumer trust, allowing the company to simultaneously address both customer satisfaction and the financial realities imposed by tariffs.
“Our promise has always been to make outdoor living dreams attainable — by offering affordable, premium products that help people make the most of their outdoor spaces,” notes Heneveld. “We’ve made some price adjustments, but they’re gradual and measured. No one benefits from sudden price spikes.”
Choosing supply chain reinforcement over production relocation
The new tariffs are prompting critical choices for many companies. For instance, one of the crucial business decisions PERGOLUX faced was whether to move production to mitigate the impacts of new tariffs. Instead of undertaking a costly and complex relocation process, the company focused on reinforcing its existing supply chain and took swift action to source its materials and components from multiple countries. Its efforts reduced its dependency on any single region, thereby minimizing potential future risks.
PERGOLUX also secured long-term supplier agreements through negotiations, bringing about much-needed stability and predictability in pricing and supply. On top of this, improved efficiency and resource management further fortified its ability to withstand external economic pressures.
About the company’s decision to batten down the hatches and remain where it is, Heneveld observes, “Our long-term supplier agreements and internal cost-cutting measures are doing more for us than shifting factories around ever could.”
Why short-term uncertainty must be met with long-term vision
The global market is on unsteady ground and will continue to fluctuate. To meet upcoming changes head-on, companies must commit to staying ahead with a long-term strategic vision, such as diversifying suppliers and optimizing logistics to proactively address future shifts in trade policies and market conditions.
PERGOLUX’s response to the new tariffs can serve as a model for strategic adaptation in the face of intense economic challenges. With the flexibility and intentionality to plan production shifts, implement measured pricing adjustments, and reinforce their supply chain, other companies can navigate an uncertain trade environment. A long-term vision can ensure lasting resilience and competitiveness despite a rapidly changing global market.
While the trade market is inherently unpredictable, further uncertainty is expected in the near future. As a result, a company’s ability to adapt and respond to external pressures will be a key measure of success. PERGOLUX demonstrates how strategic planning, flexibility, and a customer-focused approach can drive this adaptability.
