Insights from the YMI Talking Panel on Global Trade and Supply Chain Disruption
Tariffs and shifting global trade policies have become a growing concern for businesses across the Lehigh Valley. That’s why YMI Insurance recently hosted a live panel discussion—moderated by our President, Jimi Honochick—on how companies can adapt to these challenges.
Held at Notch and sponsored by Fitzpatrick Lentz & Bubba (FLB), the panel featured a dynamic mix of legal, corporate, and manufacturing leaders:
-
Timothy Charlesworth, Shareholder, FLB
-
Elyse Pillitteri, Shareholder, FLB
-
Jennifer Goodwin, Senior Counsel, Victaulic
-
Kendra Eden, Corporate Counsel, Olympus
Together, they tackled how international trade policy is reshaping everything from contract language to sourcing strategies—and what local business leaders can do to stay ahead.
Trade Whiplash: Why Businesses Are Struggling to Keep Up
From unexpected tariff announcements to rapidly changing international agreements, companies are facing significant uncertainty in their operations. Panelists noted that many small and mid-sized businesses are still reacting passively—hoping for the best rather than preparing for the worst.
While some larger organizations are exploring ways to restructure their supply chains or leverage foreign trade zones, many are grappling with the cost, complexity, and legal work required to pivot quickly.
Contracts: The First Line of Defense
One of the panel’s central themes was the importance of strong contracts. Participants agreed that outdated boilerplate language often leaves companies vulnerable when economic conditions shift.
The group emphasized that key provisions—like force majeure, price adjustment clauses, and material adverse change terms—can provide crucial flexibility. Businesses were encouraged to proactively review and update their contracts to reflect the reality of tariff-related risks.
Shorter-term agreements, built-in price renegotiation triggers, and termination clauses tied to legal or regulatory changes were among the practical recommendations discussed.
Supply Chain Diversification Is Now a Business Imperative
As recent events have shown, overreliance on any one supplier or region can have major consequences. Panelists stressed the need for businesses to diversify their sourcing and manufacturing operations wherever possible.
From evaluating new joint ventures to relocating production for strategic advantage, companies are increasingly trying to mitigate exposure to high-tariff regions. In many cases, this includes adjusting how goods are shipped and where they’re assembled to minimize tariff costs.
Legal Strategy Meets Operational Reality
The conversation also addressed the realities of working within heavily regulated industries—like healthcare and life sciences—where contracts, suppliers, and pricing are often locked in. In those sectors, the burden of absorbing tariff-related costs becomes even more complex due to fixed reimbursement rates or government pricing.
Panelists noted that legal teams are working closely with operations and supply chain leaders to respond to issues in real-time, often triaging contract reviews and updating terms as problems arise. While many companies would benefit from a full audit of existing agreements, limited bandwidth means most are making changes on a rolling basis.
Lessons from the Field: Collaboration Over Confrontation
A major takeaway from the discussion was the importance of fairness and collaboration. Rather than burying one-sided terms deep in contracts, panelists encouraged companies to be transparent with partners and look for mutually beneficial solutions when cost pressures emerge.
Real-world examples included negotiation strategies for managing price increases during construction projects and building relationships that support long-term partnership—even in challenging economic times.
What Local Businesses Can Do Now
Panelists urged businesses—large and small—to take action now by:
-
Reviewing contract templates and trade compliance policies
-
Diversifying supply chains and sourcing strategies
-
Building buffer room into budgets and pricing structures
-
Partnering with trusted legal advisors for ongoing guidance
For Lehigh Valley business owners, the message was clear: take stock of your exposure, make improvements where you can, and lean on expert resources to navigate the road ahead.
Helping You Navigate Global Risk, Locally
At YMI Insurance, we understand that international policy changes can have very real local impacts. Whether you’re manufacturing, importing, or just trying to understand how tariffs may affect your vendors, we’re here to help you stay protected.
📞 Have questions about your commercial risk strategy?
👉 Schedule a Coverage Consultation
