Tariffs have been in the news for months, and supply chains around the world have been affected. But how are the tariffs affecting the reprographics industry? IRgA surveyed members to find out, and the results range from distressing (when it comes to prices) to divided (when it comes to overall effects of tariffs).
Twenty-seven people replied to the survey. However, vendor members were excluded from the survey, and some people did not answer all the questions. So in the end, the data below is taken from 13 respondents. That’s a small sample, but gives us an idea about the industry’s experience with tariffs so far.
The first question asked about price increases. A number of manufacturers announced price increases soon after the tariffs went into effect, so it’s not surprising that respondents to the survey reported the following:
- 62 percent said they have experienced higher equipment prices due to the tariffs
- 83 percent say prices of media and other supplies are up because of the tariffs
The next question asked respondents to elaborate on their reply to the first question, and here is a sample of the comments:
- “[Several vendors] have raised prices on supplies and equipment, specifically referring to tariffs. Vendors like 3M have also raised prices but not specifically due to tariffs.”
- “Printing equipment has increased. I assume its tariff related. Same with OEM ink and parts. Bond paper has not increased, but graphics media such as vinyl has increased.”
- From a respondent in Canada: “The vendors in Canada are not segregating their supply chains. Therefore, we are getting hit with the tariffs despite Canada not counter-tariffing.”
The next question asked whether the tariffs are affecting sales. The idea behind this question was that perhaps the tariffs are affecting construction or other areas of commerce in some way that then impacts reprographics.
As the chart below shows, the replies to this question were not as dramatic as the question about prices. The majority of respondents said business in all of the areas in question is unchanged this year, despite the tariffs.
Here is the key:
Green: Business increased because of the tariffs
Blue: Business increased, but not because of tariffs
Orange: Business has not changed
Teal: Business has dropped due to the tariffs
Red: Business has dropped, but not due to the tariffs
Purple: N/A
And here is a sample of the comments related to this question:
- “I feel like there is a rush to complete projects before the full effect of tariffs kicks in.”
- “I don't feel that tariffs have had any impact on business, other than cost increases and subsequent price increases.”
- “A few local construction projects have been slowed down or put on hold due to tariffs.”
The final question in the survey asked “How are you feeling about the tariffs overall?” Of the 13 respondents:
- 3 chose: “I'm optimistic -- I think they will help the U.S. economy and thus help my business”
- 5 chose: “Neutral -- I don't think they will hurt or help my business”
- 5 chose: “I'm worried -- I think they will hurt the U.S. economy and thus hurt my business”
At this point it’s obviously too early to see what the full effect of the tariffs will be, but this survey gives us a glimpse of how the reprographics industry is feeling at this point.