Automatic Precision, a family-owned manufacturer of Swiss precision-turned components, is bracing for the worst as tariffs on its raw materials take effect. The company, which has been in business since 1976 and employs 49 people, expects the impact to be felt into 2026 but believes that most established companies will weather the storm.
Vice President Chris Bulat attributes the company's ability to survive so far to its inventory management strategy. By relying on its existing stock, Automatic Precision has been able to avoid raising prices on customers for almost a year, despite rising tariffs of nearly 30% on many of its raw materials.
However, with most of the next shipment subject to tariffs, Bulat expects prices to rise soon. "There's a lot of factors at play, not just tariffs," he notes. "Supply and demand are also playing a big role." While he doesn't rule out any miraculous turnaround in 2026, he believes that profits may only return towards the end of the year.
Automatic Precision specializes in producing connector electrical contacts made from various metals, including aluminum, brass, copper, stainless steel, bronze, nickel, and titanium. The company's expertise lies in turning Swiss precision machinery components into finished products. With its 200 machines running three shifts five days a week, Bulat is confident that the family-owned business can navigate this challenging period.
The tariffs imposed on raw materials are likely to have a disproportionate impact on American manufacturers like Automatic Precision. The company's customers come from various industries, including automotive, aerospace, medical, firearms, hydraulic companies, and the government. As such, the increase in costs due to tariffs will be reflected primarily in parts rather than entire products.
Bulat acknowledges that lower oil prices are helping to offset some of the increased costs. "The cost of living is going down," he explains. "It trickles down to all other products." Despite this, he sees tariffs as long overdue and a necessary step to put the country back on track after years of manufacturing decline.
Interestingly, Bulat believes that there will be a growing demand for workers with technical skills in the coming years. With machines taking around five years to master, he advocates for young people to look into trade schools to acquire these valuable skills. As machines retire and skilled individuals enter the workforce, the average electrician or plumber can expect to earn salaries comparable to those of doctors.
In conclusion, Automatic Precision's survival strategy is rooted in its ability to manage inventory effectively and navigate the complexities of tariffs on raw materials. While challenges lie ahead, Bulat remains optimistic that most established companies will emerge from this period unscathed.
Vice President Chris Bulat attributes the company's ability to survive so far to its inventory management strategy. By relying on its existing stock, Automatic Precision has been able to avoid raising prices on customers for almost a year, despite rising tariffs of nearly 30% on many of its raw materials.
However, with most of the next shipment subject to tariffs, Bulat expects prices to rise soon. "There's a lot of factors at play, not just tariffs," he notes. "Supply and demand are also playing a big role." While he doesn't rule out any miraculous turnaround in 2026, he believes that profits may only return towards the end of the year.
Automatic Precision specializes in producing connector electrical contacts made from various metals, including aluminum, brass, copper, stainless steel, bronze, nickel, and titanium. The company's expertise lies in turning Swiss precision machinery components into finished products. With its 200 machines running three shifts five days a week, Bulat is confident that the family-owned business can navigate this challenging period.
The tariffs imposed on raw materials are likely to have a disproportionate impact on American manufacturers like Automatic Precision. The company's customers come from various industries, including automotive, aerospace, medical, firearms, hydraulic companies, and the government. As such, the increase in costs due to tariffs will be reflected primarily in parts rather than entire products.
Bulat acknowledges that lower oil prices are helping to offset some of the increased costs. "The cost of living is going down," he explains. "It trickles down to all other products." Despite this, he sees tariffs as long overdue and a necessary step to put the country back on track after years of manufacturing decline.
Interestingly, Bulat believes that there will be a growing demand for workers with technical skills in the coming years. With machines taking around five years to master, he advocates for young people to look into trade schools to acquire these valuable skills. As machines retire and skilled individuals enter the workforce, the average electrician or plumber can expect to earn salaries comparable to those of doctors.
In conclusion, Automatic Precision's survival strategy is rooted in its ability to manage inventory effectively and navigate the complexities of tariffs on raw materials. While challenges lie ahead, Bulat remains optimistic that most established companies will emerge from this period unscathed.
theyre like so brave 2 deal w/ these tariffs 
its crazy how much it affects their business but i think they got a solid strategy in place 
reliing on inventory management is key 
cant wait 2 see how they navigate this whole thing 
btw did u no they think there gonna b a big demand 4 tech workers in the future? 
that's so true!!! trade schools r where it's at!! 
tariffs got me thinking... it's crazy how a 30% hike can affect even small fam-owned businesses like Automatic Precision 
they're already doing a great job with inventory management, but it's clear that tariffs are gonna be a major pain in the neck 
machines can only do so much, but someone needs to keep them running 
but at the same time, i get why they're trying to save inventory management strategy is key 
and their VP Chris Bulat thinks profits might not come back till like end of 2026 
I feel bad for Automatic Precision 
. But you know what? I think they'll be alright 
Chris Bulat seems like a clever guy, he's got a solid strategy in place 
. And I'm loving his vibe on the trade school thing 
apprenticeships are the way to go for sure!
its gonna b tough 4 them 2 weather but im hopin they can pull thru 
VP Chris Bulat's strategy is pretty smart, keepin inventory levels high and avoidin price hikes 4 now. Dats def a win. But lets be real, lower oil prices r helpin offset costs a bit 
and tariffs are long overdue 
its all about gettin back on track after manufacturing decline 
im just hopin established companies like Automatic Precision can make it thru unscathed 
I'm no business expert, but it seems to me that these tariffs are gonna have a pretty big impact on smaller companies and stuff 
. And what's up with the experts always saying it's going to be "a growing demand for workers with technical skills"? Like, yeah no kidding, machines can only do so much 
... I mean, I guess it's not surprising that Automatic Precision is feeling the pinch, they're just a small family-owned business trying to make ends meet. It's like, you'd think the government would have thought this through before slapping on 30% tariffs on their raw materials 
. And yeah, lower oil prices are helping to offset some of the costs, but let's be real, that's just a temporary fix 
.
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. And Bulat sees this as a necessary step for putting the country back on track after years of manufacturing decline 
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. With machines taking around five years to master, there's gonna be a big need for skilled individuals in trade schools 
, but it's gonna be an interesting ride ahead 
.
And what's with all these variables like supply and demand playing a role? Can't he just stick to the basics for once?
. That's so true. We need more people who can actually fix stuff around here instead of just relying on machines all the time.
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. Automatic Precision is holding its own, but I worry about the newbies who aren't familiar with the industry 
. It's just a trade thingy and it's not all bad news 