Tariffs push carmakers to seek US suppliers face to face

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Fluorescent lights, folding tables and five-minute pitches set the scene at Huntsville’s Von Braun Center, where dozens of auto part suppliers made their case to some of the largest carmakers in the United States. The format is blunt, a kind of manufacturing speed dating, and it has become a fixture of the Southern Automotive Conference for more than a decade.

What began as an effort to streamline supplier relationships has taken on new urgency. Supply chain pressure, lingering trade disruptions and tariff, particularly the 25 percent rate on many imported car parts, have changed how automakers approach procurement. By bringing manufacturers together with US-based suppliers, the event creates a rare opportunity to restructure sourcing strategies.

The stakes are high. While the setting may feel like a typical industry event, the conversations are anything but. Sellers often have less than five minutes to convince buyers they are worth a second meeting. For companies like Olympic Steel, which supplies raw materials, that means presenting value clearly and quickly. For staffing firms like Landrum Workforce Management, it means tailoring a message to the unique needs of major manufacturers such as the Mazda Toyota plant in Alabama.

Tariffs shape a new supply chain reality

The cost of importing key components, including metal clips and brackets, has increased by as much as 50 percent in some cases. US companies are absorbing the cost and looking inward for alternatives.

Doug Drake of Baxter Enterprises, based in Tennessee, said his raw material costs from overseas suppliers are rising fast. “Anywhere from 15 to 50 percent, depending on the part,” he said. Baxter is now exploring domestic partnerships to control pricing and maintain reliability.

For manufacturers, shifting to local suppliers offers more than cost savings. It reflects a strategic shift toward resilience and regulatory alignment, particularly as federal incentives support US-made components. Marlena Mellenthin, representing the Mazda Toyota plant in Alabama, said her team is open to new ideas. “We’re looking for ways we can save money, given the tariffs. We’re open to whatever’s out there,” she said.

A short meeting with long-term goals

Getting into an automaker’s supply chain is still a long process. It can take years from the first meeting to full integration. Trust, consistency and compliance matter as much as pricing, which is why events like this help humanize the process.

“I like to shake hands, look someone in the eye. You can usually tell pretty quickly if they are a good fit,” Drake said.

With more than 180 suppliers pitching at this year’s event, competition is steep. Still, a business card and a good first impression can be the first step in reshaping an entire supply network.

Sources:
NPR