Steel and Aluminum Costs Are Climbing—What’s Your Next Move?
We all know that steel and aluminum prices are rising again. Tariffs are also making things more expensive, which puts pressure on manufacturers to find ways to keep profits strong.
While President Trump’s 25% tariffs on steel and aluminum aren’t slated to start until March 12, the action is already reverberating through the network of producers and builders who rely on these metals to make their goods—and not in a good way.
Absorbing the higher costs is not a great long-term solution. Yet, if you’ve already been cutting costs, you can’t do much more without harming core resources. Raising prices is a fact of life, but it risks losing customers.
So, what’s the best way forward?
Focusing on growing revenue to offset these price hikes is one business variable you can control. Here are three ways to do just that:
1. Build Stronger Customer Relationships
Loyal customers are?less likely to abandon a company over small price increases. Strengthening relationships through better service, loyalty programs, and bundled offers can make customers more likely to stick with you—even when prices rise.
Expanding sales channels, such as selling directly to customers online or through strategic partnerships, can also help generate new revenue while reducing reliance on a few large buyers.
2. Find New Customers in New Markets
Expanding into new markets can help manufacturers find customers who are less sensitive to price increases. Some industries value performance and reliability more than cost, meaning they may be willing to pay a premium.?
Looking at new geographic regions—especially those with fewer tariff issues—can also open up fresh opportunities. The key is to identify markets that will pay for value, not just the lowest price.?
3. Add More Value for Your Customers
If costs rise, why not make your products and services worth more to your customers? Adding innovative services, better support, or accessory options can help justify higher prices.
Customers are often willing to pay more for durability, better technology, or solutions that save them time and effort. When manufacturers offer more than just a basic product, they can stand out from competitors and charge more without losing customers.
Keep Moving Forward
Rising costs are challenging, but they don’t have to stop growth. Manufacturers can?stay profitable and competitive—even when materials become more expensive—by finding new markets, adding value, and building stronger customer relationships.
What strategies are you using to grow your business despite rising costs?
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Orrin
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