Byrna CEO Brian Ganz on Tariffs, US Manufacturing, and Supply Chain Reshoring

Tariffs and US Manufacturing Reshoring

• 💡 Byrna CEO Brian Ganz discusses the impact of tariffs on his company, highlighting a successful shift of production and supply chain back to the United States.
• 🎯 Tariff support is stated, with 100% of production and 31% of the supply chain initially in the US, now increased to 92% and 87% respectively for key products.
• 💰 This reshoring effort has increased costs by approximately 14%, but this is significantly lower than the 30% increase that would have occurred without the move.
• 🚀 The company views itself as a "poster child" for what American businesses can achieve with imposed tariffs.

Supply Chain Resilience and Cost Management

• ⚠️ During the 2020 pandemic, only 11% of Byrna's supply chain was domestic, leading to severe interruptions and factory shutdowns.
• 🛠️ An "all truck strategy" was implemented, qualifying numerous US suppliers to ensure redundant supply chains, primarily within the USMCA region.
• 📈 While hard costs are higher domestically, lower soft costs related to importing, port strikes, and labor issues are realized, along with tighter supply chain control.
• 🤝 A virtuous cycle is observed, with domestic suppliers building capacity in anticipation of increased US demand, potentially leading to future cost reductions.

Competition and China Trade

• 🔍 The issue with China extends beyond tariffs to non-tariff barriers, allowing Chinese competitors to dump inferior products in the US market.
• 📉 Some competitors sell products for less than Byrna's cost to manufacture in the US, a practice Ganz believes tariffs are designed to prevent.
• 🚫 Products made in China are often of inferior quality and fail quickly, and are notably not allowed for sale within China itself.

Company Growth and Employment

• 🚀 Byrna's launchers have been built in the US since 2020, but ammunition production was moved from South Africa to the US in November.
• 📈 This move, partly due to a 30% tariff in South Africa, has resulted in US employment nearly doubling, from under 100 to over 200 employees.
• ✅ This expansion aligns with the goals of President Trump's trade agenda, demonstrating job creation within the United States.