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Manufacturers Navigate Tariff Turbulence and Shrinking Inventories

Manufacturers face mounting pressures as PMI contraction and rising tariffs squeeze production and supply chains. Learn how Portex helps midsize shippers respond faster, track real-time freight costs, and make smarter lane decisions despite market volatility. Stay ahead of disruptions and protect margins with clear, actionable data at your fingertips.
By
Brittany Ennix
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Midsize manufacturers moving FTL freight are confronting a complex reality: May’s Purchasing Managers’ Index (PMI) registered 48.5%, confirming a third consecutive month in contraction.

Production is under pressure, inventories are thinning, and escalating tariffs are heightening uncertainty. With new steel and aluminum tariffs rising to 50% (currently), manufacturers are recalculating material costs weekly – pressuring forecasting and pricing strategies.

In this turbulent environment, speed, clarity, and flexibility are critical. Portex gives shippers real-time access to actionable data – helping them monitor costs, compare carrier performance, and make informed decisions about where and how to source materials. With up-to-date insights at their fingertips, manufacturers can keep production moving even as supply constraints and freight costs fluctuate unpredictably.

Market Snapshot: PMI Weakness and Tariff Pressure

PMI Reflects Industry Contraction

The Institute for Supply Management (ISM) reported its PMI for May at 48.5%, down from 48.7% in April – a reading that confirms ongoing contraction across production, new orders, and inventories. Notably:

  • Production rose slightly to 45.4%, but remains below the expansion threshold

  • Imports fell sharply, with an index of 39.9% – lowest since May 2009

  • Inventories dropped further, indicating manufacturers have depleted stock from early-year front-loading

Tariffs Disrupt Planning and Costs

The U.S. government recently doubled steel and aluminum tariffs to 50%. Manufacturing respondents cited this escalation as a major disruptor – creating “chaos” across pricing, costing, and supply chain planning – forcing frequent recalculation of bill-of-materials and disrupting forecasting.

Why This Matters for Midsize FTL Shippers

Thinning Inventories Raise Freight Sensitivity

With many companies’ inventories dropping to dangerously low levels, mid‑sized manufacturers are in a precarious position: production is vulnerable to raw material shortages and delivery delays. FTL freight becomes a linchpin – whenever shipments are delayed or rates spike, so does production risk.

Also, with a lot of the raw materials coming from ocean freight, specific lanes will be impacted when the rush hits (like LA to anywhere could get very competitive for example).

Volatile Input Costs Undermine Predictability

With tariffs doubling in weeks, material prices are unstable. Manufacturers must absorb fluctuating freight expenses on top of raw material inflation – complicating customer pricing and eroding margins if not managed effectively.

Planning Cycles No Longer Enough

Traditional quarterly or annual bidding cycles can leave shippers exposed if they aren’t backed by solid data. Freight costs can shift dramatically between bid windows, leading to surprises – especially on tariff-sensitive inbound lanes. Portex equips shippers with real-time data and cost trends, so they can decide whether it’s smarter to rebid lanes or maintain existing rates for greater stability and reduced risk. Similarly, if they do quarterly bidding, maybe the data suggests yearly instead.

How Portex Helps You Adapt

Portex is built to bring clarity and agility to freight operations – critical in volatile environments.

On-Demand Re-Bidding

Portex lets you re-bid or hold rates, whichever makes sense to your business. Portex’s data can help you decide. When materials are delayed or tariffs push rates higher, you can quickly request new quotes from trusted carriers or broadcast lane bids across the network – without waiting for contracts to reset.

Real-Time Cost and Rate Tracking

Portex provides dashboards that show cost-per-mile over time, and lane-level analytics. This gives your team visibility into how tariffs may lead to market shifts that alter freight spend – and how your current contracts stack up.

Carrier Comparison Across KPIs

When fast decisions are required, Portex aggregates carrier options with relevant data. You can make apples-to-apples comparisons and choose the option that best aligns with production timelines.

Rapid Onboarding, Immediate Use

Portex is designed for quick setup and immediate impact. You don’t need heavy IT integration – teams can begin submitting bids and benchmarking rates within days, responding in real time to inventory squeezes or freight disruptions.

Tactical Steps You Can Take Today

  1. Identify Tariff-Impacted Lanes

Pinpoint lanes influenced input tariffs. Monitor bids and rates on these lanes weekly.

  1. Trigger Re-Bids on Critical Lanes

Use Portex to re-bid relevant lanes. Capture cost improvements or lock in capacity and rates before further tariff changes.

  1. Benchmark and Negotiate

Compare current contracted rates to market quotes in Portex. Use insights to renegotiate fuel adjustments or secure better terms.

Summary: Navigate Uncertainty with Speed and Insight

  • PMI at 48.5%, falling imports, and low inventories signal a fragile manufacturing environment 

  • Rising tariffs (steel, aluminum at 50%) are destabilizing raw material costs and supply flows .

  • For midsize shippers, accelerating freight decisions – re-bidding lanes, benchmarking carriers, tracking rates – can prevent production disruption and protect margins.

  • Portex gives you the tools to react in real time: analyze, bid, track, compare – with full transparency across your network.

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