Mid-Market Manufacturer Navigates Tariff Uncertainty

Manufacturing companies importing materials from Asia faced mounting pressure as new U.S. tariffs drove up input costs overnight. Without real-time cash visibility or insight into tariff impact, margin compression and supply chain instability threatened financial health.

For our client, Acclarity built a rolling 13-week cash flow model, enhanced reporting to isolate tariff costs, and supported supplier renegotiations. The result: clear visibility, protected margins, and agile decision-making in a volatile trade environment.

Acclarity helps manufacturing and supply chain-driven companies protect margins and strengthen financial resilience during market disruptions. By combining dynamic cash flow modeling, cost tracking, and supplier insights, we empower clients to make faster, data-informed decisions, even in tariff-sensitive environments.

THE CHALLENGE

A mid-market manufacturing company with $10-50M in revenue faced a time-sensitive risk: new U.S. tariffs sharply increased raw material costs from China and Taiwan. The company lacked real-time cash visibility, had limited supplier diversification, and no process for quantifying tariff impact. Without a structured financial response, rising input costs compressed margins and destabilized working capital.

ACCLARITY APPROACH

13-Week Cash Flow Model: Created a rolling cash forecast with automated inputs. Weekly updates helped management stay on top of payroll, payables, and vendor terms.
Financial Reporting Enhancements: Modified chart of accounts to track tariff-related expenses in real time, enabling data-driven decisions and stakeholder transparency.
Supplier Contract Review: Analyzed key contracts and supported renegotiations to share tariff burdens. This fostered cost-sharing and strengthened supplier relationships.
Scenario Planning: Developed dynamic models across three tariff fluctuation scenarios. Outputs informed pricing, purchasing, and customer communication strategies.

RESULTS THAT RESONATE

With Acclarity’s support, the client gained daily visibility into their cash position, enabling proactive management of payroll, vendor obligations, and liquidity risks. Margin pressure was reduced through clear cost attribution and pass-through strategies, while renegotiated supplier terms helped stabilize pricing and build long-term resilience. Scenario planning equipped leadership with the tools to act swiftly and confidently in the face of tariff uncertainty, turning volatility into strategic foresight.

ACCLARITY IN ACTION

What can your team do today to build cash flow resilience in a tariff-sensitive environment? Key takeaways:

Model Weekly Liquidity: Move beyond monthly views. A rolling 13-week model identifies emerging risks and decision points.
Isolate Tariff Costs: Track tariff impact across your GL to align purchasing, pricing, and negotiation strategies.
Diversify Suppliers + Terms: Use financial insight to support renegotiations or diversify sources before disruptions hit.
Run Scenarios Quarterly: Build simple what-if models around top risk variables—COGS, volume, interest rates, and supply continuity.

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