Global challenges are impacting logistics regardless of the origin of production and manufacturing. While the cost of producing goods with DIZPOT remains stable, the expense of transporting goods internationally has become subject to unpredictable increases, driven by fluctuating tariffs and shifting geopolitical landscapes.
Succeeding in Global Negotiations
While the Trump Administration approach to global negotiations have created uncertainty in the global marketplace and supply chain management, this is not the first time DIZPOT has dealt with global supply chain crisis.
Experienced in Navigating Disruptions
Think back to a short time ago when manufacturing and shipping logistics were rocked by COVID-19, and international supply chain security was at risk every day of every week for at least 36 months. DIZPOT was there for you then and we are here for you now.
Securing Supply Chains Through Uncertainty
Regions such as Asia, Europe, and South America are facing daily uncertainties, and the broader implications of tariffs—including those stemming from the U.S.-China trade negotiations—continue to influence the supply chain security. In fact, uncertainty is the new normal the global economy can expect until stability comes from U.S.-China trade negotiations.
Our priority at DIZPOT is to ensure that our customers are shielded from these challenges as much as possible, even as we navigate the limitations of global production infrastructure—a complex reality that cannot be resolved with mythical fairy dust or a magical switch turning on domestic manufacturing capabilities.
There is not a quick solution to our shared issues related to these disruptive moves made by our current Administration.
The current and most likely temporary fluctuations in shipping costs underscores the global reliance on raw materials sourced from regions such as China, where manufacturing infrastructure has been honed over centuries. This reality is compounded by the absence of immediate, or even long-term, alternatives for domestic production.
The raw materials necessary for plastics, mylar, chipboard and other typical manufactured finished goods are not commonly produced in the United States.
The reality we’re facing in the short term is simple, whether your business is manufacturing its goods internationally or domestically, it is certain you will experience increased costs for your packaging goods.
Here are the reasons why:
- If your business is sourcing internationally from any place, other than China, your manufacturing partner has increased costs for raw materials coming from China and increased demand for their services from the United States.
- And, if your business is sourcing domestic manufacturing, those manufacturers are sourcing many of their raw materials from China which will increase their costs and your price. Additionally, anytime demand is increased, suppliers increase their price, that’s capitalism.
- Lastly, if the product you are purchasing is simply only produced and manufactured in China, your business will be required to pay the tariffs the Trump Administration is imposing at this time.
Despite these obstacles, DIZPOT has taken proactive steps to mitigate the financial impact experienced by its customers. While DIZPOT produces finished goods both domestically and globally, our team is working diligently to manage costs while maintaining transparency, efficiency, and reliability. The DIZPOT approach embodies composure and leadership during uncertain times, upholding our reputation as a trusted ally in the packaging and logistics industry.
With that all said, we could wake up tomorrow and find that our reality has snapped back to just a few days ago when supply chain security was normal for our businesses. Let’s work collectively to weather the storm and look forward to re-gaining stability.
Authors: John Hartsell and Jeff Scrabeck, Co-founders and Owners of DIZPOT
At DIZPOT, we remain steadfast in our commitment to delivering quality goods at competitive pricing.
Founded by John Hartsell and Jeff Scrabeck in 2017, DIZPOT is a global cannabis packaging company with custom technologies for highly regulated markets. Headquartered in Phoenix, Ariz., DIZPOT produces millions of packages every month, providing its customers with a single source solution to bring products compliantly and competitively to market. Leveraging its extensive international logistics network, the company works with thousands of cannabis brands servicing both small businesses and multi-state operators. Renowned for its Old School Service approach, DIZPOT puts its customers first, providing a one-hundred percent guarantee on the quality of its finished goods.