Automatic Precision Sees Tariffs as Catalyst for Survival in 2026
The US manufacturing sector, already reeling from the impact of tariffs, is bracing itself for a tumultuous 2026. Automatic Precision, a Harwood Heights-based company specializing in Swiss precision-turned components, is taking a pragmatic approach to the impending challenges.
According to Vice President Chris Bulat, who has been instrumental in navigating his family-owned business through the turbulent landscape, the company's inventory levels have taken a hit from tariffs imposed on raw materials. The next shipment will also be subject to tariffs, necessitating price increases for customers.
However, Bulat remains optimistic that most established companies will weather this storm. He attributes the resilience of larger firms to their diversified customer bases and reputation, which enables them to adapt more easily to changing market conditions.
For Automatic Precision, the impact has been relatively contained, with the company able to avoid layoffs. Despite the challenges, Bulat acknowledges that 2025 was a year of survival rather than profit growth. However, he remains confident that the company will emerge stronger in 2026.
One area where Bulat sees opportunities for growth is in the demand for workers with technical skills. As machines require around five years to master, there will be a significant need for skilled laborers in the coming years. He urges young people who are mechanically inclined to explore trade schools as a viable career path.
In contrast to some other companies, which have struggled to adapt to the tariff regime, Automatic Precision's impact has been relatively limited. The company manufactures components for various industries, including automotive, aerospace, medical, and government sectors, where demand remains strong despite global challenges.
Bulat also notes that lower oil and gas prices may offset some of the increased costs associated with tariffs. However, he emphasizes that the long-term effects on manufacturing are far-reaching and will require sustained effort to address.
Ultimately, Bulat believes that the implementation of tariffs was necessary to restore America's manufacturing prowess. He observes a growing trend among customers seeking local sourcing options, which is expected to continue in 2026.
As Automatic Precision navigates the uncertain landscape of 2026, its commitment to resilience and adaptability will be crucial. With a focus on technical skills development and a diversified customer base, the company appears poised to emerge stronger from this challenging period.
The US manufacturing sector, already reeling from the impact of tariffs, is bracing itself for a tumultuous 2026. Automatic Precision, a Harwood Heights-based company specializing in Swiss precision-turned components, is taking a pragmatic approach to the impending challenges.
According to Vice President Chris Bulat, who has been instrumental in navigating his family-owned business through the turbulent landscape, the company's inventory levels have taken a hit from tariffs imposed on raw materials. The next shipment will also be subject to tariffs, necessitating price increases for customers.
However, Bulat remains optimistic that most established companies will weather this storm. He attributes the resilience of larger firms to their diversified customer bases and reputation, which enables them to adapt more easily to changing market conditions.
For Automatic Precision, the impact has been relatively contained, with the company able to avoid layoffs. Despite the challenges, Bulat acknowledges that 2025 was a year of survival rather than profit growth. However, he remains confident that the company will emerge stronger in 2026.
One area where Bulat sees opportunities for growth is in the demand for workers with technical skills. As machines require around five years to master, there will be a significant need for skilled laborers in the coming years. He urges young people who are mechanically inclined to explore trade schools as a viable career path.
In contrast to some other companies, which have struggled to adapt to the tariff regime, Automatic Precision's impact has been relatively limited. The company manufactures components for various industries, including automotive, aerospace, medical, and government sectors, where demand remains strong despite global challenges.
Bulat also notes that lower oil and gas prices may offset some of the increased costs associated with tariffs. However, he emphasizes that the long-term effects on manufacturing are far-reaching and will require sustained effort to address.
Ultimately, Bulat believes that the implementation of tariffs was necessary to restore America's manufacturing prowess. He observes a growing trend among customers seeking local sourcing options, which is expected to continue in 2026.
As Automatic Precision navigates the uncertain landscape of 2026, its commitment to resilience and adaptability will be crucial. With a focus on technical skills development and a diversified customer base, the company appears poised to emerge stronger from this challenging period.