Dog Days of Summer & Dogs of Trade Wars

August turns into a real slog when vacation isn’t in your plans. But who has time for vacation in the fast-moving consumer goods supply chain (and every supply chain for that matter)? August could bring enormous changes in export and import costs. Or not. Markets and marketers hate uncertainty. But hating something won’t make it go away—trust me.

So what’s a business executive to do? This is a time to revisit every aspect of your supply chain and ensure you’re building flexibility into your business model, according to ISSA, the trade association for the industrial & institutional cleaning industry. ISSA notes tariff policies are shifting rapidly, and many businesses are struggling to keep pace. From aluminum to steel, from machinery to packaging materials, imported components crucial to cleaning products are often taxed at multiple levels. 

Of course, it’s not just cleaning products. It’s facial cleansers, body washes and a host of other personal care products, too. The Personal Care Products Council notes the cosmetics and personal care products industry is a key driver of the US economy, with over $68 billion in US manufacturing and 4.6 million US jobs. 

“Our industry directly contributes over $300 billion to our nation’s GDP, and our products are essential to the daily lives of all US residents, with millions of consumers using about six to 12 products each day, including sunscreen, toothpaste, shampoo, moisturizer and fragrance,” said Francine Lamoriello, EVP-global strategies.

Click here to read how household and personal products companies outside the US are coping with tariff talks. Our International Top 30 looks at the biggest players in the global household and personal products industry with headquarters outside the US. 

But with cooler days ahead, cooler heads may prevail in the trade wars. In the meantime, check out Lianna Albrizio’s article on the latest trends in color cosmetics (click here). Mass market sales slipped a bit in the past year, but marketers hope the foodie trend whets consumers’ appetite for lip and nail color.

We hope you enjoy this edition of Happi. As always, we welcome your comments and suggestions.

Tom Branna
Chief Content Officer
tbranna@rodmanmedia.com