LogicSource Releases 2025 Tariff Report, Offering Insights for Businesses Navigating Cost Increases and Supply Chain Disruptions

WESTPORT, Conn., Jan. 15, 2025 /PRNewswire/ -- LogicSource, a leader in procurement services and technology, today announced the release of its comprehensive LogicSource 2025 Tariff Impact Analysis, guiding businesses dealing with the proposed tariff changes set to impact indirect spend categories. With the first wave of tariffs targeting goods from Mexico, Canada, and China scheduled to take effect on January 20, 2025, LogicSource urges companies to act now to reduce risk and maintain operational stability.

The report warns of significant cost increases, including potential increases of 20-30% in IT hardware, 15-25% in plastic packaging, and 30-60% in HVAC systems. The report's key findings indicate that these changes could directly affect 90% of IT hardware spend, 80-90% of packaging materials, and 80% of construction and capital equipment.

"With the uncertainty surrounding upcoming tariff changes, this report highlights the impact to indirect spend categories such as IT, facilities, and corporate services, which many organizations tend to overlook and can represent a significant base of expenses," said Dave Pennino, CEO of LogicSource. "Companies that act quickly and intentionally can take this moment to optimize costs, strengthen supplier relationships, and build long-term stability."

LogicSource's report outlines five critical steps for companies to mitigate risks and maintain stability:

• Prioritize critical needs: Focus on high-impact spend categories, such as IT hardware, packaging, and construction materials.
• Explore alternative sourcing: Shift to low-tariff or domestic regions to ensure supply continuity.
• Expand supplier networks: Diversify sourcing to reduce reliance on single suppliers.
• Strengthen negotiation strategies: Collaborate with suppliers to optimize agreements and reduce tariff burdens.
• Enhance inventory management: Leverage AI and bulk purchasing to adapt supply chains effectively.

"The tariffs imposed in 2018 significantly impacted consumer costs, driving up prices for imported goods like electronics, furniture, and appliances," said James Bouchard, Associate Partner, Center of Excellence at LogicSource. "With higher percentages and broader scope, the latest proposed tariffs are expected to have an even greater impact on consumers and businesses, driving up costs across a wider range of imported goods and amplifying the pass-through effect on prices."

The phased implementation of tariffs is expected to begin in Q1 2025 and escalate through Q4. Categories such as electronics, industrial components, and packaging materials will experience the earliest impacts, with broader categories following.

To access the full report, visit https://logicsource.com/lp/tariff-impact-analysis-strategic-implications-for-indirect-spend.

About LogicSource

The innovative leader in procurement services and technology, LogicSource is purpose-built to drive profit improvement, mitigate risk, and ensure supply chain continuity through better buying. LogicSource focuses exclusively on the sourcing and procurement of indirect goods and services, which typically represent 20% of an organization's revenue and the area of greatest spending inefficiency. These include complex categories like marketing, packaging, corporate services, facilities, information technology, distribution and logistics and more, for which organizations often lack the capacity, focus and scale to achieve best-in-class buying. Unlike traditional advice-based consultants, LogicSource is a purpose-built buying utility with assets that are configurable to their clients' needs and ready to deploy. By combining decades of sourcing and procurement expertise, superior market intelligence, cross-portfolio spending leverage, and their OneMarket® Source-to-Pay technology, LogicSource executes customized solutions that deliver immediate savings and sustainable value. For more information visit www.logicsource.com.

Contact: Erica Olenski, 678-504-6786, erica.olenski@finnpartners.com 

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SOURCE LogicSource