Materials mfg expert says tariff uncertainty should be impetus for fresh innovation

As President Trump unveils U.S.' tariff agenda and intensifies the country's stance on trade policy, leaders in American manufacturing are grappling with the ripple effects—and questioning the path forward. 

Matt Totsch, CFO of drywall solutions provider Trim-Tex, and board member of the Illinois Manufacturers’ Association, is among those voicing cautious optimism and a dose of realism.

Placating the constituency: Totsch acknowledges that the messaging behind the tariffs has understandable resonance. "From Trump's standpoint, it sounds good. There's been a lot of offshoring, especially to China, and that even has started to subside recently," he says. "He's placating his constituency, and it sounds great." But beneath the surface, he says, the reality is more complicated.

Ramifications: Tariffs may be framed as a tool to encourage American-made goods and protect domestic jobs, but Totsch questions the approach. "I'm very much a carrot guy as opposed to a stick guy. And this is trying to use a stick to drive consumers or drive behavior, which I don't think works long term," he says. "There’s going to be serious short-term ramifications that are going to be detrimental to the economy."

Creating jobs: For Totsch, the future of U.S. manufacturing lies in strategic investment and empowered workforces. "At the simplest form, it's about onshoring and bringing manufacturing back to this country," he says, adding that the industry's impact extends well beyond factory walls. "It's a multiplier effect. We have 250 people here at Trim-Tex nationwide. It amplifies how many jobs support what goes on underneath this roof: contractors, insurance brokers, you name it. We create jobs."

Ivory tower: But sustaining and growing that ecosystem requires more than policy shifts. Totsch emphasizes the importance of autonomy and innovation at every level of the company. "It can’t just come from the ivory tower, the office, telling people what to do," he says. "We need to empower people to find opportunities, especially in light of tariffs coming up—whether that's a new product, a new customer, a cost-cutting measure, a better way of making something."

Leading with courage: Despite the uncertainty, consumer spending remains strong, and Totsch believes the industry can weather the storm. "We're using the mantra right now: tighten the belt, but don’t cut the muscle," he says. "We believe growth opportunities are in front of us. We're just going through a bump."

In turbulent times, Totsch says, leadership matters more than ever. "People are scared right now, for sure. So we've got to keep people calm as best as we can—and lead with courage."