Navigating the Tariff Storm Part XII: Don’t Let Evolving Tariffs Distract You from Making Operational Improvements

By Daniel Hyla and David Teeple

Tariffs have been rewriting the rules of global trade, disrupting supply chains for much of 2025. While initial projections forecasted an economic downturn following the rollout of these tariffs, the economy has continued to defy expectations, growing at an annualized rate of 3% in Q2, outpacing the forecasted 2%¹. Still, uncertainty remains. As new data surfaces, speculation and dissent persist over the long-term implications of these trade measures. Notably, for the first time in three decades, two Federal Reserve governors dissented on the decision to maintain current interest rates, a signal that even amid strong economic performance, underlying shifts are underway.²

Within the supply chain, organizations are walking a fine line between reaction and strategy. Many are actively responding to the latest trade deals while simultaneously developing long-term plans to navigate the evolving landscape into late 2025 and beyond.

As we turn the page to the second half of the year, now is the time for companies to look inward, identifying opportunities to improve efficiency and reduce costs within their own four walls. Modern labor management systems (LMS) are accelerating this shift, offering shorter implementation timelines and more flexible data requirements. Meanwhile, the ability to structure technology investments as operating expenses, rather than traditional capital expenditures, has lowered the barrier to entry for many. Combined with continued advancements in warehouse automation, the tools to drive visibility, productivity, and throughput are more accessible than ever.

Over the coming weeks, we will take a deeper dive into these abundant opportunities that organizations can leverage to increase performance & production to meet SLAs and exceed customer expectations.

Let Sedlak assist you in addressing these challenging times. With over 65 years of experience advising industry leading organizations, Sedlak will help address the challenges of today and prepare you for an ever-evolving future. Reach out to David Teeple at dteeple@jasedlak.com or Daniel Hyla at dhyla@jasedlak.com for more information.

Sources

1. GDP Q2 2025:
2. Fed Holds Rates Steady, but Two Officials Back a Cut – WSJ