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Furniture maker commits to 'price stability' amid tariffs
An office furniture manufacturer in the region is committing to a year of zero price increases as a way of “dealing” with import tariffs.
Holland-based Trendway Corporation said this week it is committed to holding prices steady for its customers in the wake of escalating tariffs on imported materials from China and other countries.
“At this time of uncertainty, Trendway will create price stability for its clients with projects scheduled to install within the next 12 months,” said Mark Kinsler, president, Trendway.
“As a company committed to speed, ease and quality, we are renewing our commitment by continuing to source as much as possible from domestic resources, which will provide us with the ability to grow and thrive in this current business climate.”
Ten-percent tariffs have been imposed on components and raw materials coming from China, and the tariffs are expected to increase to 25 percent on Jan. 1, according to Trendway.
Increasing tariffs have particularly impacted the contract furniture industry because of the number of products that rely on components and raw materials from China, Trendway said.
Kinsler said sourcing locally helps mitigate the impact on Trendway.
“Because we source the vast majority of our components and raw materials locally, Trendway is in a unique position in the office furniture industry to protect our customers from price increases,” Kinsler said. “Our local sourcing approach has been a key component of our strategy.”
Trendway’s announcement comes after a Business Journal report on PNC Financial Services Group’s Fall 2018 Economic Outlook published Oct. 1, which said 42 percent of Michigan’s small and mid-size business owners anticipate paying higher prices to suppliers because of tariffs, and 31 percent expect to pass on the costs to customers if the global trade war continues to escalate.
Founded in 1968, Trendway Corporation is an employee-owned office furniture manufacturer.
The company offers a range of products: panel systems, filing, storage, casegoods, seating, architectural solutions with moveable walls and more.
It has also supplied government customers as a GSA contractor for more than 20 years.