Controlling Costs Amidst Tariff Uncertainty

April 28, 2025

At Protomatic, we are constantly focused on managing costs—both for the materials we source and the precision parts we deliver. As global markets shift and tariff policies remain uncertain, we’re taking proactive steps to control inflationary costs without compromising quality.

Strategic Sourcing of Raw Materials

We source most of our materials from the United States or countries that meet DFARS compliance standards (see DFARS 252.225-7001 for a list of qualified NATO countries). For decades, Protomatic has prioritized DFARS-compliant materials in accordance with the Buy American Act (DFARS 252.225-7001) and the Specialty Metals Clause (DFARS 252.225-7008).

Choosing these suppliers helps minimize tariff impact while maintaining compliance with important certifications such as EN10204 3.1, RoHS, REACH, Conflict Minerals, Counterfeit Materials, PFAS, and California Prop 65.

While raw material prices are largely driven by global market forces, we remain committed to sourcing high-quality materials that meet your specifications and support long-term value.

Navigating NADCAP Services and Batch Pricing

Many of our process-based services—such as heat treating, plating, anodizing, and NDT inspections—are certified by NADCAP, a widely recognized independent qualification body. While most of our suppliers hold NADCAP accreditation, some services are performed per process specification only.

Recently, we’ve seen minimum batch pricing increase significantly—some by two or three times. To offset these rising costs, we recommend increasing lot sizes and consolidating jobs when possible.

Our Approach to Tariff-Related Cost Control

1. Quote Validity Adjustments

As material suppliers reduce their quote validity—from 30 days to just 1 day—Protomatic has also updated our quoting policy. Our standard quote validity is now 15 days. For highly volatile materials or processes, quotes may be limited to 1 day. If your quote has expired, please request a requote to ensure pricing accuracy.

2. Duty-Free Entry for Military Contracts

If your order is under a military contract that includes Duty-Free clauses (FAR 52.225-8 and/or DFARS 252.225-7013), imported components may be eligible for duty-free entry. This typically requires pre-approval and coordination with the prime contractor. Note: USMCA-related purchases are generally excluded. If applicable, tariff costs may appear as a separate line item on your invoice.

3. Fixed-Price Contracts

To help stabilize pricing, we treat most contracts as fixed-price. Once we receive your order, we immediately procure all materials and tools required for production. For long-term jobs, materials are secured up front and delivered on a fixed schedule to reduce cost fluctuations.

4. Quotes Including Tariffs

While rare, some quotes may include applicable tariff costs up front to maintain full pricing transparency. If this applies to your project, you’ll see it clearly outlined in the quotation.

Current Supply Chain Status

At this time, we have not experienced major supply chain disruptions. However, we are monitoring critical materials including cobalt, nickel, tungsten, as well as refractory metals, that may be subject to availability or tariff restrictions.

Tariffs May Shift — Our Commitment Won’t

While global tariff conditions remain uncertain, one thing stays constant: Protomatic’s commitment to controlling costs, minimizing risks, and delivering Life-Saving Precision in every part  and device we produce.

Contact Us Directly

📞 734-426-3655

 

About the Author: Doug Wetzel is Vice President and General Manager of Protomatic, a CNC precision machine shop serving the medical and aerospace industries.