Summary. In the face of tariff-related cost uncertainty, especially in metal fabrication, companies must strategically control costs of production without compromising quality. This blog outlines seven practical strategies for controlling costs and protecting margins. First, partnering with U.S.-based contract manufacturers helps avoid tariffs and customs delays. Second, using alternative, cost-effective materials can reduce expenses while maintaining performance. Third, design simplification can cut production costs by minimizing complexity and unnecessary features. Fourth, clear invoicing ensures duties aren’t improperly applied to nondutiable items. Fifth, optimizing production batches reduces waste and overhead. Sixth, leveraging automation increases efficiency and consistency, especially for higher-volume runs. Finally, working with a contract manufacturing partner offering end-to-end services allows for holistic cost-saving opportunities across sourcing, design, fabrication, and logistics. These strategies help businesses navigate tariff challenges, stabilize costs, and maintain a competitive edge in an unpredictable economic environment.
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You’re likely familiar with the saying, ❝You can’t control what happens to you, but you can control how you react.❞
With the ongoing tariff wars, prices on materials like steel, aluminum, and copper, along with broader reciprocal duties, are on the rise, and so is the uncertainty of where prices will be one week or even one year from now.
💵 Understandably, protecting margins and controlling production costs during this tariff turbulence has become a top-of-mind concern for any company that relies on contract manufacturing metal fabrication services.
If these are some of the concerns you’re waking up with every day, read on, because in this blog, we’ve identified seven practical strategies you can adopt immediately to help reduce and control the costs of your projects without sacrificing product quality or reliability.
1️⃣ Work With a U.S.-Based Contract Manufacturer
One of the most effective ways to reduce your risks during a tariff war is to work with a U.S.-based contract manufacturer. Importing finished parts, subassemblies, or raw materials exposes you not only to tariffs, but also to customs clearance fees, inspection delays, and fluctuating international freight costs.
Domestic partnerships also bring advantages in quality control, as well as shorter shipping distances and faster responsiveness to engineering changes which contribute to shorter lead times.
In the world of metal fabrication, especially for tight-tolerance sheet metal fabrication or complex electromechanical assemblies, domestic sourcing often results in better outcomes. It’s important to note, however, that domestic sourcing doesn’t completely shield you from higher raw material costs. U.S. mills and distributors often adjust prices upward when tariffs are imposed globally. Still, avoiding the added burden of duties and cross-border headaches can be a meaningful way to stabilize costs and protect your margins.
2️⃣ Consider Alternative, Lower-Cost (But Not Necessarily Lower-Quality) Materials for Your Project
Not all materials are hit equally hard by tariffs. Some alloys, grades, or product forms (such as extrusions vs. coil stock) may carry higher duties than others depending on their country of origin. By reviewing your bill of materials carefully, there may be opportunities to specify alternatives that deliver the same performance but at a lower cost.
For example, certain types of aluminum sheet or stainless grades may have domestic equivalents that are more cost-effective than their imported counterparts. Even with steel, substituting one thickness or finish for another may reduce tariff exposure while still meeting your strength and cosmetic requirements.
In contract manufacturing, these strategic substitutions are especially beneficial when building fabricated metal components or weldments that don’t have to meet niche material specs.
3️⃣ Explore Alternative or Creative Design and Engineering Options
Sometimes the biggest cost savings don’t come from material choice at all, but from how a part is designed. Overly complex geometries, excessive weldments, or unnecessary machining features can all drive up production costs. By simplifying a part’s design — without compromising function — you can often reduce material consumption, cut down on secondary operations, and improve overall manufacturability.
For instance:
📌 A bent sheet metal component may be able to replace a welded assembly.
📌 A laser-cut tab-and-slot feature can reduce welding time while improving alignment.
📌 Combining multiple parts into a single fabricated component can cut out assembly labor and reduce fastener usage.
These kinds of engineering adjustments not only reduce direct production costs, but they can also help align your project with domestic sourcing strategies, further reducing the impact of tariffs downstream.
For companies involved in precision metal fabrication and electromechanical assemblies, these design efficiencies also improve consistency and reduce quality control issues over time.
4️⃣ Carefully Review Agreements/Contracts and Invoicing
Tariffs are calculated based on the declared value of imported goods. If invoices bundle together dutiable and nondutiable costs, you may be paying duties on items that shouldn’t be tariffed in the first place.
For example, tooling charges, engineering support, software programming, or testing services may inadvertently get rolled into the product cost if not itemized clearly. When that happens, tariffs can be assessed on those amounts — inflating your costs unnecessarily.
The solution is to ensure that your contract manufacturer prepares invoices that separate product costs from nondutiable charges. This is especially relevant for projects involving fabricated metal components, precision assemblies, or multi-tiered systems.
5️⃣ Leverage Flexible Production and Batch Optimization
⚙️ Production efficiency is another area where costs can be controlled. The more time your manufacturer spends on changeovers, idle machine setups, or small-batch runs, the more overhead gets baked into each unit.
🗓️ By planning production schedules strategically, you can take advantage of economies of scale without falling into the trap of overproduction. For example, aligning forecasted orders into larger, optimized batch sizes can reduce setup time, minimize scrap, and lower your per-piece cost.
6️⃣ Benefit from Automation-Driven Efficiency
Advanced automation also helps to control costs. CNC punching, laser cutting, and automated bending allow shops to run faster and with optimal precision.
For medium-to-higher volume production runs, automation reduces rework and ensures consistency from batch to batch. In lower-volume, highly customized projects, automation can still offer benefits — but programming and setup costs may offset some of the savings.
Automation also adds value beyond cost. Faster turnaround times, fewer errors, and better repeatability all improve reliability — which reduces hidden costs associated with delays, scrap, or field failures.
For companies building electromechanical assemblies, integrating automation into both fabrication and final assembly helps accelerate timelines.
7️⃣ Work with a Contract Manufacturing and Metal Fabrication Partner That Provides End-to-End Services
Finally, one of the best ways to navigate tariff turbulence is to work with a partner who can see the big picture of your entire project. A shop that simply fabricates parts will only be able to offer cost savings at the piece-part level. By contrast, a partner with end-to-end capabilities — from design to fabrication to assembly and logistics — can identify cost-saving opportunities across the entire value chain.
Examples include:
📌 Consolidating multiple suppliers into one integrated partner to cut down on logistics costs and markups.
📌 Redesigning an assembly to eliminate redundant components.
📌 Advising on bill-of-materials decisions to avoid tariff-heavy inputs.
With a volatile and unpredictable tariff landscape, it’s not enough to simply ride out the storm. Companies that take a proactive approach — optimizing sourcing, design, contracts, production, automation, and partnerships — will be better positioned to protect their margins and stay competitive.
About Mathison Manufacturing
Founded in 1959, Mathison Manufacturing is a trusted partner in precision contract manufacturing, specializing in tight-tolerance sheet metal fabrication, electromechanical assemblies, and complex, high-end solutions. Known for exceptional craftsmanship, responsive service, and a customer-first mindset, Mathison is dedicated to delivering quality products and building lasting partnerships that help customers grow.
Let’s work together on your next project! Contact us today!