Iva Prcela's questions to Tennant Co (TNC) leadership • Q4 2024
Question
Iva Prcela asked about Tennant's exposure to parts manufactured in China and the company's level of concern and mitigation strategy regarding potential trade wars and tariffs.
Answer
CEO David Huml quantified the exposure, stating China represents less than 10% of COGS, or about a $50 million impact. He explained that while the company is concerned, it is actively working to mitigate potential tariffs through supplier negotiations, dual-sourcing, product redesign, and, as a last resort, pricing actions, with a preference to absorb costs internally.