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Supply chain risk management: Tariffs, disruptions and more
Supply chain risks are growing. A multitude of complex, interconnected risk factors are driving volatility and putting new pressure on manufacturing CEOs and COOs to adapt in response. Implementing a practical supply chain risk management strategy can help. Keep reading to learn what that looks like and how to get started. What are the top supply chain risks? Supply chain risks are largely shaped by government policy, geopolitical events and international conflict. Key risks include tariffs, the wars in Iran and Ukraine, energy shortages and USMCA ambiguity, as well as raw material pricing volatility — all of which are deeply interrelated. Here are the major supply chain risks explained in more detail: Tariffs: The Trump administration’s tariff policies have added new costs to U.S. imports (current tariff rates add 10-50% to the price of imported goods), with the volatility of the tariffs themselves also presenting a challenge. International conflicts: The Iran war has pushed oil and gas prices up significantly, while the war in Ukraine has affected prices for other commodities like wheat and cooking oil (while also resulting in current and possibly future sanctions on Russian gas and oil). Rising energy demand: The wars are affecting supply, but a growing U.S. demand for energy that’s driven largely by data centers has also pushed energy prices higher. Volatile raw materials pricing: Raw materials prices have continued to climb higher, including crucial materials like metals and resin, with supply chains for molds and dies also heavily disrupted. USMCA ambiguity: We don’t know whether the USMCA negotiations will successfully result in a new iteration of the trade agreement, creating additional uncertainty for manufacturers, especially those with cross-border operations. Driver shortage: New U.S. policies have limited the labor pool in the trucking industry, making it harder to move goods. Ending the wars with Iran and Ukraine may be a tall order for the average manufacturing business to take on. But that doesn’t mean you’re helpless here either. How do you implement a supply chain risk management strategy? Implementing a cohesive supply chain risk management strategy can help your manufacturing business weather the storm of today’s supply chain risks. The key here is to stop worrying about what you can’t control and focus on what you can do: 1. Map your supply chain Mapping your supply chain will help you better understand your specific risks so you can take steps to mitigate them. To do this, identify each of your vendors, evaluate all your different supply chain inputs throughout the entire process from quote to cash, consider how long you’re holding raw materials and finished goods, and note when payments are made. 2. Identify alternative vendors Based on your supply chain mapping, explore whether alternative vendors or geographies could lower costs or reduce volatility. For example, switching vendors to a lower-tariff country could help, as could finding a U.S.-based vendor willing to absorb certain tariff costs on its end. 3. Monitor supply chain pricing Designate someone on your team to monitor supply chain pricing and tariff updates. This can help your business react more quickly to changes , which is especially important in today’s volatile environment. 4. Rework costing and quoting Your expenses have changed, and your costing and quoting needs to reflect that. Rework it all to take today’s supply chain environment into account and price in tariff costs and volatility. 5. Find operational efficiencies Finding operational efficiencies and getting creative with AI can help you offset higher supply chain costs. Automation can be a game-changer here , especially if you use tax incentives like bonus depreciation and qualified production property to lower the barriers to entry. 6. Do scenario planning Planning for supply chain risks helps you better prepare to meet them. Game out different scenarios like tariff hikes or oil price spikes to evaluate what that could mean for your business and how you should respond. 7. Reevaluate customer and vendor contracts As you negotiate new customer and vendor contracts, take rising costs and volatility into account. Prioritize flexibility here: You don’t want to get locked into a long-term contract only to watch your costs spiral due to factors that are out of your hands. Shrinking margins mean the time to act is now In Wipfli’s recent survey of 456 manufacturing executives, those leaders reported that profitability is declining across the board . Today’s volatility has contributed significantly to that margin pressure, which means that acting to mitigate supply chain risks can help relieve it. The time to act is now. Businesses that adapt to today’s challenges will not just get through them but become more flexible and efficient in doing so. However, those who wait too long will only fall further behind the eight-ball — until it may be hard to catch up.
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Tribal Home Energy Rebate Program: A Guide for Tribes
The Tribal High-Efficiency Electric Home Rebate (HEEHR) Program gives federally recognized tribes and Alaska Native Corporations grants to help their communities reduce energy costs and modernize their homes. The application deadline is December 11, 2026. DOE reopened the program and extended the deadline in 2026 under Program Notice 26-3, which included updated rules, so a plan drafted under the earlier guidance needs a fresh look. If your tribe hasn’t yet acted, there is still time to claim its share. Keep reading to learn more about the grants and strategies your tribe can use to help ensure your community gets the most benefit out of the money. What is the Tribal HEEHR Program? The U.S. Department of Energy’s Tribal High-Efficiency Electric Home Rebate Program provides up to $ 218.5 million to Indian Tribes and Alaska Native Corporations to develop, implement and subsidize residential energy-efficiency, electrification and appliance-upgrade projects. The grant uses a formula-based allocation. Each tribe has a specific amount set aside for them. You’re not competing against other tribes for a shared pool. You simply need to apply and demonstrate that you have a plan to use the money effectively. Tribes can form a tribal consortium, which allows them to pool administrative funding and administer programs more efficiently. Tribes can join a consortium at any point prior to application submission, with approval from a Tribal Council Resolution or a Head of Government letter. What Tribal HEEHR money can be used for Tribal HEEHR funds are allocated to help low- and moderate-income households make energy upgrades to their homes. Rebates can cover up to full project costs for low-income households (less than 80% of the area median income) and up to half of project costs for moderate-income households (80–150% of the area median income). Individual homes are eligible for up to $14,000 in rebates. Here is a breakdown of the approved upgrades and of how much money is available for each: Improvement Maximum rebate Electric heat pump HVAC system $8,000 Electric circuit panel upgrade $4,000 Electric wiring upgrades $2,500 Electric heat pump water heater $1,750 Insulation, air sealing and ventilation $1,600 Electric stove, cooktop or oven, heat pump, clothes dryer $840 Restrictions of note include: Homes must use rebates for insulation and air sealing prior to installing heating and cooling upgrades, unless their insulation and sealing meet DOE and tribal standards. Rebates cannot be used to switch from a gas, oil or other fossil-fuel appliance to an electric appliance. They can be used to replace existing electric equipment with more efficient electric equipment. In practice, that means the $8,000 heat pump rebate applies mainly to homes that already heat and cool with electricity. Why tribes should pursue this funding now This is money that can help tribal members and the overall economy in your community. There is no reason to let the opportunity go to waste. When you put this money to work, the benefits could include: Lower energy bills: Utility rates have been going up. The spikes are significant in many regions. More efficient appliances equal smaller utility bills. For low-income households, those monthly savings can go a long way. Modernize your housing stock: If your tribe owns homes that members live in, this is an opportunity to upgrade those houses at reduced or no cost. Economic stimulus: If the work installing insulation, heat pumps and other appliances goes to local businesses, that’s money and jobs that stay in your economy. Workforce training: Organizations such as Green Summit can pair the installations with training and mentorship for tribal members, including HERS Rater and Rating Field Inspector pathways, so the knowledge stays in the community. Layer grants to maximize your return HEEHR funding doesn’t have to work in isolation. The rebates can be combined with other federal and state programs, such as the Weatherization Assistance Program (WAP) . The key is to be strategic in how you allocate grant money. Avoid spending general funds to pay for projects or appliances that grant money could cover. Prioritize the use of general funds for items and services that are out of scope for federal and state awards. How tribes can get started Think of this program like a construction project. You wouldn’t break ground without a blueprint. The same applies here. Before you put the money into action, you need to: Know your community and make a plan Be sure you have the relevant data for your community. How many homes are owned by the tribe? How many citizens are homeowners in the area? Have you gathered the income data for each household? Then decide what upgrades your tribe wants to prioritize. Whether it’s more heat pumps and appliance changeouts for energy efficiency or panel upgrades to support electrification, it’s ultimately up to the tribe to decide which upgrades to implement. Climate and geography should drive the tribe’s strategy. In northern regions, insulation, air sealing and cold-climate heat pumps may offer significant value. In warmer regions, conventional heat-pump systems or other eligible electric upgrades may be a better fit. Build a fraud, waste and abuse mitigation plan The DOE is focused on preventing waste, fraud and abuse within the program. You’ll need to demonstrate that your grant funds were spent on the projects they were intended for. Documentation isn’t just good practice; it’s a compliance requirement. Whether it’s tribal staff or a third party conducting inspections, everything should be documented. GPS-verified and time-stamped photos should be taken before and after each project. DOE mandates include address verification to ensure that a single address doesn’t receive rebates for the same component through a similar program. For example, if a household claims an HVAC heat pump under the Tribal HEEHR program, it can’t also claim an HVAC heat pump under a state program. However, it could potentially take an HVAC heat pump under one program and appliances, stoves or electrical panels under the other. Find the right partner It’s strongly recommended that tribes bring in outside help. With income verification, compliance requirements and data reporting, the program is complex. Navigating it solo adds unnecessary risk. Get a partner familiar with the program, document everything and have a very good plan in place. If those three things are taken care of, distributing funds, certifying funds and supporting any DOE audits becomes a much smoother process Read more AI for tribes: Managing risk and maximizing impact How GASB 103 and GASB 104 will impact tribal governments Don’t let tribal energy grants jeopardize your energy tax credits
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Pros and cons of robotics in manufacturing
Today’s industrial robots operate across a wide range of industries, from semiconductors and automobiles to plastics processing and metal forging. Pretty much any repetitive operation is a great job for a robot, particularly if it’s dangerous or difficult for people. Manufacturing robots have been used for high-volume processes, but as the technology advances and the cost of industrial robots declines, more options and opportunities are opening for medium- and small-sized operations to leverage robot manufacturing. These robots also help manufacturers address tight labor pools, global market competitiveness and safety. If you’re curious whether robots can enhance your value stream, here are the main pros and cons to consider when it comes to industrial automation and robotics: What are industrial robots? Industrial robots are programmable machines designed to perform manufacturing tasks with precision, speed and repeatability, typically without direct human intervention. Industrial robots are highly flexible and can be reprogrammed to handle a range of tasks across different production lines. They integrate with broader manufacturing systems, including industrial internet of things (IIoT) platforms, vision systems and ERP software, to support data-driven operations. For manufacturers, they represent a practical path to improving throughput, quality and workforce safety across the value stream. According to the International Federation of Robotics, the global stock of operational industrial robots reached a record 3.9 million units in 2022 . That figure continues to grow as manufacturers of all sizes look to automation to sustain throughput and reduce dependence on constrained labor markets. Advantages of industrial robots Here are some of the advantages manufacturers often experience when they add industrial robots to their production floor: 1. Better quality control and consistency Along with other tech — such as the IIoT, artificial intelligence, data analytics or 3D printing robots — industrial robots are able to provide better production quality and more precise and reliable processes. Added benefits also include reduced cycle times and real-time monitoring to improve preventive maintenance practices. 2. Maximum productivity and throughput An industrial robot increases speed for manufacturing processes, in part by operating 24/7. Robots don’t need breaks or shift changes. The speed and dependability of robots ultimately reduce cycle time and maximize throughput. Robotic factory automation and manufacturing with robotics enables high efficiency. 3. Greater safety Using robots for repetitive tasks reduces the risk of injury for workers, especially when manufacturing must take place under hostile conditions. In addition, supervisors can oversee the process online or via remote monitoring. 4. Reduced direct labor costs The cost of having a person handle many manufacturing operations is often more expensive than a robot. This can also free up workers so their skills and knowledge can be used in other business areas, such as engineering, programming and maintenance of the robotics used in manufacturing. 5. Keeping manufacturing in the U.S. Some argue that robots are taking jobs away from U.S. workers, but that’s not necessarily the case. Industrial robots are typically integrated into a series of operations that require human expertise. For example, you could have a robot welding parts that are handed off to a person to perform a task that requires a human’s intuitive “if, then” thinking. The future of robotics in manufacturing involves humans and robots working together in factories. Disadvantages of industrial robots Industrial robots are not without tradeoffs. Before moving forward with automation, it’s important to plan accordingly for these potential challenges: 1. High initial investment Robots typically require a large upfront investment. As you research your business case for purchasing, consider all the costs of industrial robots, including installation and configuration. You should also evaluate whether your robot can be easily modified if you need to alter its operation in the future. Robotics for manufacturing is a significant investment. 2. Expertise can be scarce Industrial robots need sophisticated operation, maintenance and programming from controls engineers. While the number of people with these skills is growing, it’s currently limited. As a result, it’s important to consider the personnel investment you’ll need to make to bring in that expertise or “retool” your existing staff to take on the task of working with robots in industrial automation. 3. Ongoing costs While industrial robots may reduce some manufacturing labor costs, they do come with their own ongoing expenses, such as maintenance. In addition, you’ll want to consider the costs to keep your robot and any related IIoT-connected devices protected from cyberthreats. Industrial robots vs collaborative robots Industrial robots and collaborative robots (aka cobots) serve different purposes on the manufacturing floor, and understanding the distinction is critical before making an investment decision. Traditional industrial robots are built for speed, precision and high payload. They typically operate behind safety barriers or in fully fenced cells, isolated from human workers during operation. This makes them well-suited for high-volume, high-speed applications such as welding, stamping, or painting, and for environments where throughput is the priority and task variation is low. The tradeoff is complexity. Programming, integration and safety infrastructure require significant upfront planning and controls engineering support. On the other hand, collaborative robots are designed to work alongside people in shared spaces without physical barriers. They use sensors and force-limiting technology to detect and respond to human presence, making them a practical option for operations that require frequent task changes, limited floor space or tighter labor integration. Cobots generally carry lower payloads and operate at slower speeds than traditional industrial robots, but they can be deployed and reprogrammed more quickly, which is advantageous for mid-size manufacturers managing product variety or shorter production runs. Manufacturers need to match the right technology to the right application. A single facility might use traditional robots for high-speed assembly and cobots for inspection, packaging or tasks that benefit from human-robot collaboration. Evaluating your production environment, workforce structure and growth trajectory is the starting point for making that determination. Feature Industrial robots Collaborative robots (cobots) Operating environment Isolated, behind safety barriers Shared space with human workers Speed High Moderate Payload capacity High (up to several hundred kg) Lower (typically under 35 kg) Programming complexity Higher — requires controls engineering Lower — often teach-pendant or app-based Upfront cost Higher Lower Deployment time Longer Faster Best for High-volume, repetitive, high-speed tasks Flexible, variable or human-adjacent tasks Safety infrastructure Required (caging, fencing) Built-in sensors; no caging required Reprogramming flexibility Moderate High Ideal operation size Large-scale production lines Small to mid-size operations or flexible lines Read more Best practices for inventory optimization in manufacturing and distribution Improving profitability and margins in manufacturing 9 tariff mitigation strategies for U.S. manufacturers
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