Innovation and Strategic Supply Chain to Offset Tariff Impact
In March of 2018, steep tariffs were abruptly placed on imported steel before the American steel manufacturers were ready to fulfill the demand and produce the quality required. Whatever the American Steel industry will eventually be able to do, they cannot do it now. Steel exemptions were denied based on future capability and capacity in the US but not on today’s reality. Adding insult to injury, the steel prices in the US rose to meet the import pricing with the tariff included. The few exemptions that were granted are set to expire in October of this year.
It is great to see the rebuilding of our steel industry in the United States. However, for every one steel producing job, there are 80 jobs involving the use of steel, according to the Fabricators and Manufacturers Association, Intl. Steel is used in construction, automobiles and national security but that is not the same steel used in thousands of consumer products. Tin plated steel is sheet steel with a thin coat of tin to retard rust. This is the steel used in decorative and specialty metal packaging.
With what we are learning daily about the problem of plastic in our oceans, in ice crystals and the stomachs of animals, now is not the time to make steel a second choice. It is a rock star performer in sustainability as well as safety, durability, filling and brand differentiation. Learn more at steelforpackaging.org.
This is why Independent Can is as committed as ever to producing high quality metal packaging for as many industries and brands as possible. We believe in the superiority of cans made from steel.
For decades, Independent Can has forecast its steel requirements and built strong relationships with its suppliers. We work diligently to protect our customers from market and economic volatility. Our financial stability, strategic supply chain, and redundant printing and manufacturing facilities, ensure continuous supply.
What are we doing to reduce costs?
– Since the beginning of the year, we have automated many of our can line processes and palletizing systems, to increase our efficiencies and lower costs.
– Since January of this year, we have initiated a number of other cost reduction activities to be installed by the end of this
– We continue to work to reduce scrap throughout our processes.
Automation will not and has never replaced a worker at Independent Can. In a robust job market, we want to retain our talent and use those employees in areas where they can grow their skills rather than engaging in repetitive tasks.
For 90 years, we have grown and thrived through economic volatility and downturns. We were founded during the Great Depression!