Tariffs on steel and aluminum are driving up the cost of U.S. manufacturing projects, forcing companies like Torani and World Emblem to retool expansion plans. Torani absorbed a $3 million cost spike on a new production line, while World Emblem states that U.S. factory buildouts now cost 50% more than they did five years ago.
Key Takeaways
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Tariffs inflate U.S. costs: Steel and aluminum duties are raising construction and factory expansion expenses, even for companies already producing in the U.S.
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Projects face delays and changes: Torani postponed upgrades and reengineered designs to cope with tariff-related overruns, while World Emblem weighs automation to offset costs.
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Growth persists despite hurdles: Despite higher expenses, Torani is pressing toward $1 billion in revenue by 2030, and World Emblem is expanding facilities in Houston and Atlanta.
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