Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
You may have seen some panic on social media in
the last week. Seattle ports are reportedly empty because of terrafts,
some speculating that this is a sign of a looming
economic crisis.
Speaker 2 (00:09):
Joining us now in the KA Common Spirit Health hotline,
do you supply chain program Directors, Jack Buffington, Jack, we
appreciate coming on with us again here on Colorado's Morning News.
Are we starting to see supply chain slowdowns and issues
because of the Trump tariffs or is that something that's
going to come later or come at all.
Speaker 3 (00:28):
Well, first off, good morning. Yeah, we're starting to see
the beginning signs of this in import export activity. So
for consumer obviously consumers are impacted, but here in Colorado
we actually bring in a lot of things for manufacturing
and distribution for companies like Arrow and Gates and companies
like that. Potentially reciprocal tariffs to our farmers and our
(00:53):
ranchers and our oil producers, and then all the impact
to truck drivers and other people who work in retalent
all businesses. So yeah, I think what we're seeing at
the ports is maybe the canary and the cold mine
that of potential problems in the next couple of weeks.
Speaker 1 (01:07):
Jack walk us through the Why why are we already
seeing these steps of current tariffs resulting in the supply
chain issues. Is it just the fact that other countries
are saying, well, we're not even going to bring you
things if we are paying so much to ship it.
Speaker 3 (01:21):
Correct, So each of these business relationships has to make
a decision on whether to bring the container from places
like China and pay the tariffs or turn them around,
or even to put the material into a warehouse and
waiting for the tariffs. And so these are all sending
shocks to retailers and producers. Like I mentioned, the media
(01:44):
often talks about consumers, but we also have to think
about the impact of tariffs to producers and distributors.
Speaker 2 (01:51):
Jack. So when you're ordering your supplies, your materials, how
far out as a business are you thinking about seeing him?
Because how long does it take for those supplies and
materials to get into our supply chain? Literally here domestically.
Speaker 3 (02:05):
Right, So materials should be coming in right now for
back to school, and then the whole planning process for
the Christmas season is happening right now. So these are
long tailed supply chains that take you know, four to
six months to work through.
Speaker 1 (02:20):
So are we going to see more of a long
term impact? You mentioned Christmas, and we've heard President Trump
talk about it on and on again of what we
could see when it comes to what could be or
could not be under the Christmas tree.
Speaker 2 (02:31):
Is that going to be.
Speaker 1 (02:31):
One of the biggest factors that we'll see with these
supply chain issues and what we see some panic buying
as a result of it.
Speaker 3 (02:40):
Yeah, I think, you know, even if some of these
even if trade deals were put in place today, it
would take you know, a month to six weeks to
put the supply chain back into place and then the
whole planning process happens. So I think we're going to
see some disturbances of some type related to stock outages
or prices through the rest of the year.
Speaker 2 (03:00):
You mentioned the back to school stuff should be coming.
Now I'll reference what the President said, We don't need
two hundred and fifty pencils, maybe two to three to
four to five. So based on that, I'm being a
bit glib, but based on that, when you order that stuff,
is there a cap where they say, well, we'll order
under this so we don't hit the tariff or does
it work like that.
Speaker 3 (03:19):
Well, you know, we talked about supply chains. Is this
one thing is there's so many different you know, contracts
when it comes to pencils versus steel, versus a pairrel
versus electronics, and these are all decisions that you know,
these relationships between producers and distributors and retailers have to make.
(03:39):
In some cases, I've seen that actually distributors and retailers
that said we're going to absorb the tariffs. In some
cases they say they're not. I think for commodity items
like pencils, it's going to be very unlikely that people
are going to see in price increases of prices, but
there's some things that are significant, like medical supplies that
they may So each of these are individual contract relationships
(04:01):
and it's very complex from importer to exporter.
Speaker 1 (04:05):
So you've covered in great detail the producers, distributors, retailer side.
I know you said consumers is usually what we're always
talking about, but obviously that's what a lot of our
KOA listeners are. So when it comes to the consumer,
is there anything that they should be doing right now?
Speaker 3 (04:21):
Well, there's a lot of changes that are happening. I
think it's always what I mentioned when it comes to
these situations is you know, be an educated purchaser. You
know understan you know, do your research on a lot
of times people want to buy things online, but convenience
cost money, and so you know, like the one thing
in presidence say is maybe we don't need as much
of everything that we need. Don't panic and start buying
(04:45):
things for Christmas. So just really be reasonable and logical
and you know, understand what you need and don't buy
anything more than that.
Speaker 2 (04:53):
And a quick follow up to that, but do you
say that some operations will absorb the tariffs, but I'm
assuming that is based on if they're big enough to
absorb it. Some of the smaller mom and pops probably can't.
And is it directly a corollary to if they're say
a fifteen percent tariff, that fifteen percent is passed on
or do they pass on part of that cost?
Speaker 3 (05:11):
Right right there? Is like all of this. One thing
to understand about the tariffs right now is there's a
ten percent tariff right now, I'm pretty much everything, and
then the one hundred and forty five percent that's being
talked about. Some of them are actually taking place right now,
and some of them aren't taking place in a month,
and so yeah, I think if it's something critical that
(05:31):
absolutely is related to some major item, you know, like
I think healthcare is one that really makes sense to
me is that if you need these supplies, you got
to pay it, and you and probably have to absorb
it to where our healthcare system is. Other ones, you know,
it's going to be very unlikely that there's even any deal.
I've seen customers send letters out to their suppliers to say,
(05:54):
these you know, it's not in our contracts, so you
have to prove everything. So you're getting into these challenges,
and some companies are saying, we just can't wait to
have these negotiations. We just need the material. So there's
a whole bunch of different situations and given how broad
sweeping these tariffs are.
Speaker 1 (06:11):
Director of the Supply Chain Program at d you it's
Jack Buffington,
You may have seen some panic on social media in
the last week. Seattle ports are reportedly empty because of terrafts,
some speculating that this is a sign of a looming
economic crisis.
Speaker 2 (00:09):
Joining us now in the KA Common Spirit Health hotline,
do you supply chain program Directors, Jack Buffington, Jack, we
appreciate coming on with us again here on Colorado's Morning News.
Are we starting to see supply chain slowdowns and issues
because of the Trump tariffs or is that something that's
going to come later or come at all.
Speaker 3 (00:28):
Well, first off, good morning. Yeah, we're starting to see
the beginning signs of this in import export activity. So
for consumer obviously consumers are impacted, but here in Colorado
we actually bring in a lot of things for manufacturing
and distribution for companies like Arrow and Gates and companies
like that. Potentially reciprocal tariffs to our farmers and our
(00:53):
ranchers and our oil producers, and then all the impact
to truck drivers and other people who work in retalent
all businesses. So yeah, I think what we're seeing at
the ports is maybe the canary and the cold mine
that of potential problems in the next couple of weeks.
Speaker 1 (01:07):
Jack walk us through the Why why are we already
seeing these steps of current tariffs resulting in the supply
chain issues. Is it just the fact that other countries
are saying, well, we're not even going to bring you
things if we are paying so much to ship it.
Speaker 3 (01:21):
Correct, So each of these business relationships has to make
a decision on whether to bring the container from places
like China and pay the tariffs or turn them around,
or even to put the material into a warehouse and
waiting for the tariffs. And so these are all sending
shocks to retailers and producers. Like I mentioned, the media
(01:44):
often talks about consumers, but we also have to think
about the impact of tariffs to producers and distributors.
Speaker 2 (01:51):
Jack. So when you're ordering your supplies, your materials, how
far out as a business are you thinking about seeing him?
Because how long does it take for those supplies and
materials to get into our supply chain? Literally here domestically.
Speaker 3 (02:05):
Right, So materials should be coming in right now for
back to school, and then the whole planning process for
the Christmas season is happening right now. So these are
long tailed supply chains that take you know, four to
six months to work through.
Speaker 1 (02:20):
So are we going to see more of a long
term impact? You mentioned Christmas, and we've heard President Trump
talk about it on and on again of what we
could see when it comes to what could be or
could not be under the Christmas tree.
Speaker 2 (02:31):
Is that going to be.
Speaker 1 (02:31):
One of the biggest factors that we'll see with these
supply chain issues and what we see some panic buying
as a result of it.
Speaker 3 (02:40):
Yeah, I think, you know, even if some of these
even if trade deals were put in place today, it
would take you know, a month to six weeks to
put the supply chain back into place and then the
whole planning process happens. So I think we're going to
see some disturbances of some type related to stock outages
or prices through the rest of the year.
Speaker 2 (03:00):
You mentioned the back to school stuff should be coming.
Now I'll reference what the President said, We don't need
two hundred and fifty pencils, maybe two to three to
four to five. So based on that, I'm being a
bit glib, but based on that, when you order that stuff,
is there a cap where they say, well, we'll order
under this so we don't hit the tariff or does
it work like that.
Speaker 3 (03:19):
Well, you know, we talked about supply chains. Is this
one thing is there's so many different you know, contracts
when it comes to pencils versus steel, versus a pairrel
versus electronics, and these are all decisions that you know,
these relationships between producers and distributors and retailers have to make.
(03:39):
In some cases, I've seen that actually distributors and retailers
that said we're going to absorb the tariffs. In some
cases they say they're not. I think for commodity items
like pencils, it's going to be very unlikely that people
are going to see in price increases of prices, but
there's some things that are significant, like medical supplies that
they may So each of these are individual contract relationships
(04:01):
and it's very complex from importer to exporter.
Speaker 1 (04:05):
So you've covered in great detail the producers, distributors, retailer side.
I know you said consumers is usually what we're always
talking about, but obviously that's what a lot of our
KOA listeners are. So when it comes to the consumer,
is there anything that they should be doing right now?
Speaker 3 (04:21):
Well, there's a lot of changes that are happening. I
think it's always what I mentioned when it comes to
these situations is you know, be an educated purchaser. You
know understan you know, do your research on a lot
of times people want to buy things online, but convenience
cost money, and so you know, like the one thing
in presidence say is maybe we don't need as much
of everything that we need. Don't panic and start buying
(04:45):
things for Christmas. So just really be reasonable and logical
and you know, understand what you need and don't buy
anything more than that.
Speaker 2 (04:53):
And a quick follow up to that, but do you
say that some operations will absorb the tariffs, but I'm
assuming that is based on if they're big enough to
absorb it. Some of the smaller mom and pops probably can't.
And is it directly a corollary to if they're say
a fifteen percent tariff, that fifteen percent is passed on
or do they pass on part of that cost?
Speaker 3 (05:11):
Right right there? Is like all of this. One thing
to understand about the tariffs right now is there's a
ten percent tariff right now, I'm pretty much everything, and
then the one hundred and forty five percent that's being
talked about. Some of them are actually taking place right now,
and some of them aren't taking place in a month,
and so yeah, I think if it's something critical that
(05:31):
absolutely is related to some major item, you know, like
I think healthcare is one that really makes sense to
me is that if you need these supplies, you got
to pay it, and you and probably have to absorb
it to where our healthcare system is. Other ones, you know,
it's going to be very unlikely that there's even any deal.
I've seen customers send letters out to their suppliers to say,
(05:54):
these you know, it's not in our contracts, so you
have to prove everything. So you're getting into these challenges,
and some companies are saying, we just can't wait to
have these negotiations. We just need the material. So there's
a whole bunch of different situations and given how broad
sweeping these tariffs are.
Speaker 1 (06:11):
Director of the Supply Chain Program at d you it's
Jack Buffington,
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