It’s bumpy out there.
In today’s global business world, “tariff” has become the newest four-letter word for C-suite executives as they try to navigate the ever-changing foreign policy being mapped out almost daily by the new administration.
The back-and-forth of will there be or won’t there be tariffs and on what products from what countries has executives saying — on background, of course — that managing, planning and running a company amid the backdrop of “uncertainty” has quickly become the descriptor du jour.
The first week of March delivered tariffs on goods from Canada and Mexico and additional tariffs on goods from China. Then, as quickly as those went into effect, the administration paused tariffs on cars from Canada and Mexico for a month, and the following day suspended many of the tariffs imposed on the two countries. Tariffs on steel and aluminum were set to take effect last week on metal from Canada, Mexico and other countries. By now, that could have changed.
And that’s just it. It’s hard to tell from one day to the next what the model looks like. Heck, sometimes the plan could change within the span from morning to the end of the day.
These moves, executives have said, are business busters.
Couple the tariff moves the administration is making with a downturn in consumer confidence, and executives are concerned.
Looking at the latest figures from The Conference Board, the tracker of consumer confidence since 1967, consumers are not confident.
The index dropped seven points in February, and the expectations index — the number that ascertains how consumers feel about the future — dropped 9.3 points to 72.9. That marks the first time the expectations index has dropped below the threshold of 80, indicating a recession could be ahead.
In the most recent round of earnings reports for bedding-related companies, the figures outlined the story. Four companies — Somnigroup International, formerly Tempur Sealy International, Leggett & Platt, Sleep Number and Culp Inc. — released results by March 10.
Of the four, Somingroup was the only one that didn’t report a decline in sales for the year, or in Culp’s case the first nine months. Somnigroup sales for the year were relatively flat, while Leggett and Sleep Number reported sales declines of 7.2% and 11%, respectively, for the prior year. Culp’s fiscal year doesn’t end until April, but through the third quarter, the fabrics supplier posted a 6.1% consolidated sales drop.
With consumer confidence slipping, tariffs creating chaos and sales sliding across the bedding industry, executives are bracing for what could be a long, unpredictable road ahead. The next nine months will likely be marked by continued uncertainty as companies try to navigate shifting policies, economic headwinds and evolving consumer sentiment.
For now, leaders are focusing on what they can control: streamlining operations, adjusting pricing strategies and hoping that demand rebounds as inflation cools. But with no clear roadmap in sight, one thing is certain: It’s bumpy out there, and the ride isn’t smoothing out anytime soon.
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