Wastewater Manufacturing: Ready for the Storm

Why the Wastewater Industry May Be Prepared for Increased Tariffs, and What to Do if You’re Not.

Wastewater products were made with storms in mind.  When the water rises, the pumps are there on purpose.  Well, there is a storm brewing, and it may bring some rough seas.  By the time this article has posted, it likely already has.  We’re talking about increased tariffs. 

If your business is part of the wastewater industry, then your business is critical to public health and infrastructure.  It’s also your business, which is critical for your customers, your employees, and your family. Any disruption in your supply chain, including increased costs for your business or your customers could make a significant impact. 

But here’s the good news.   A closer look reveals that the wastewater industry is actually better positioned to withstand these challenges than some might think. Maybe that’s because we’re always ready for a storm.  Still, these challenges are real, and if you’re not fully prepared, then you’re likely looking for ways to do so. 

At Keen Pump, we’re bullish that the wastewater industry may be prepared for increased tariffs.  We also want to help you know what to do if you aren’t.

Why the Wastewater Industry is Likely Prepared

Strong U.S. Manufacturing Presence

Research shows that the wastewater industry already relies on a robust domestic manufacturing base. Many leading manufacturers of wastewater pumps and systems, such as us here at Keen Pump, and also Liberty Pumps, and Goulds, maintain substantial production operations in the United States.  It’s likely that even American manufacturing companies source some portion of their parts from China.  Still American manufacturing companies have an advantage.

A Shift Away from Chinese Manufacturing

During the U.S.-China trade war, tariffs were imposed on numerous Chinese imports, driving up costs for companies reliant on Chinese-made parts. This impacted many industries, but the wastewater industry was quick to respond.

In recent years, manufacturers across the board have been diversifying their supply chains to reduce dependency on China. A 2019 survey by Thomas found that nearly 64% of manufacturers were actively considering shifting their supply chains away from China.

This shift away from China means that while some components may still be sourced from tariff-affected countries, the overall impact on pricing and availability for wastewater products may be much smaller than expected.

Tariff-Exempt Categories

While no one knows the specifics of tariffs, where they may be targeted, and to what extent, there is some evidence to suggest the wastewater industry may take a softer hit. The government can, if they choose, be selective.  Components deemed vital to public health and safety—such as pumps, valves, and treatment equipment—might not face the same level of tariff exposure as consumer goods or non-essential industrial products.

What to Do If You’re Not Prepared

Yet, there are many companies, as referenced above, that rely more heavily on sourced products and manufacturing from countries other than the United States.  If that’s you, or your supplier, than preparation is critical.

Here are some steps you can take to protect your operations from potential tariff impacts:

1. Diversify Your Supply Chain

By working with suppliers in countries that are not targeted by tariffs—or by increasing your use of domestic supplier, including us here at Keen Pump—you can reduce your risk of price fluctuations and delays.

You should also review the sourcing strategies of your current suppliers and explore options to increase domestic sourcing where possible.

2. Focus on Domestic Manufacturing

U.S. pump manufacturers already have a significant presence in the wastewater industry, and working with them could shield you from the unpredictable nature of international tariffs.

For instance, manufacturers like Keen Pump and others offer products made in the U.S. that are specifically designed to meet the needs of wastewater systems. In this way, you not only support local businesses but also ensure that your supply chain remains stable and less affected by trade policies.

3. Invest in Innovation

Wastewater manufacturers are exploring new technologies, such as more energy-efficient pumps, remote monitoring systems, and advanced materials that can lower operating costs and reduce reliance on foreign-sourced components.

Consider retrofitting your current systems to use domestically sourced, more affordable alternatives. Companies like Keen Pump have already developed custom product lines, like our RetroFit series, which allows customers to upgrade existing systems with modern, efficient equipment that fits perfectly into pre-existing setups.

4. Plan for Budget Adjustments

Finally, it’s important to plan for potential cost increases, even if you’ve diversified your supply chain. Work with your financial team to assess how rising equipment costs might affect your overall budget and consider passing on any necessary price increases to clients in a way that maintains transparency and trust.

There is no doubt that manufacturing companies will absorb a hit if and when tariffs continue to rise.  But being prepared with a solution is good business. Keen Pump is doing just that, and as an American owned manufacturing company, we always will.