How Suppliers Navigate the New Normal of Volatility 

• Tariffs are creating both financial strain and operational complexity for suppliers while simultaneously driving increased demand for U.S.-based production and limited opportunities for cost recovery.  

• Overinvesting in EV-specific assets has exposed companies to risk in a shifting market, underscoring the need for flexible, technology-agnostic investments.  

• Addressing workforce challenges requires both systemic education reform and proactive, skills-based talent development to build a more capable and engaged pipeline. 

• Leveraging global operations, particularly lessons from China, can help Michigan-based efforts. 

It’s no surprise that the automotive and mobility industry has faced significant tariff uncertainty over the past year. Jill Dralle of Nexteer Automotive emphasized the substantial financial strain tariffs have created. At the same time, she pointed to a notable upside, explaining that “As a U.S.-based company, one of the things that it has brought to us is opportunity. We do have our customers looking for more U.S. content,” highlighting how tariffs are driving both cost pressures and new domestic demand. 

Offering a different perspective, Gary Grigowski of Team 1 Plastics Inc. described the operational complexity that tariffs introduce for global suppliers. His team engineers and builds processing equipment and dies across Michigan, Canada, and India, an international footprint that heightens exposure to sudden policy shifts.  

“You can imagine what it’s like when you have a supplier that went from a very low tariff to all of a sudden a 50% tariff in one day, and this can happen in the middle of a program,” Grigowski said. He also noted the challenge of reshoring production in the near term, adding that for injection molding machinery, the company’s primary equipment, “90% is imported,” making rapid localization unrealistic. 

Still, there are signs of relief. Following recent eligibility for IEEPA tariff refunds, Grigowski shared, “Last year, we brought in one machine that had an IEEPA tariff for $46,000 and are expected to get that back,” pointing to limited but meaningful financial recovery opportunities. 

Closing the discussion, Mark White of Shape Corp. echoed both the support and uncertainty suppliers are navigating. While customers are “coming forward and helping us with relief,” he cautioned that such measures are temporary. He emphasized the need for long-term planning, noting that “that’s not going to be a forever type of scenario.” 

Following recent EV policy reversals, Nexteer Automotive faced the realities of an aggressive early investment in EV-specific equipment. Dralle reflected that focusing too narrowly on EV-only applications proved to be a misstep, explaining that “what we should have been doing is looking at how to design this, so it was agnostic to whether it was a BEV or an ICE vehicle.”

While Nexteer has been able to repurpose portions of that investment, the experience delivered a clear lesson: “how do we design our products and design our processes so that we can use them no matter what’s happening in the market,” underscoring the need for flexibility in an evolving landscape.

White shared a similar perspective shaped by global experience. With existing EV business in China and Europe, Shape saw opportunity as North America accelerated its EV push, particularly because “they are heavier vehicles and we’re in the impact energy management business.” That demand led to expanded applications and new business opportunities, including in Michigan.

However, as the market shifted, those gains proved difficult to sustain. Reflecting on the outcome, White echoed Dralle’s lesson, noting that “we had some capital that was flexible, but we had too much dedicated capital,” reinforcing the importance of adaptable investments in a rapidly changing market.

White emphasized the urgent need to reform the public education system and called for a unified, statewide effort. “We need to come together as a state. We need to educate our children,” he said. But education alone isn’t enough. Students must also be prepared and motivated to learn. As White stressed, “They have to be curious. They have to have basic skills. And that’s what I’m concerned about,” highlighting deeper challenges around readiness and engagement. 

Grigowski reinforced these concerns, pointing to the “age out” effect in critical roles such as maintenance. At the same time, he highlighted how Team 1 Plastics is taking action to strengthen the talent pipeline, including for students who may not pursue college. The company is “reaching into the school system, trying to find the people who have curiosity and want to problem solve, and bring them in and send them through some of the local training,” demonstrating a more proactive, skills-based approach to workforce development. 

Rather than drawing a hard line between China and the U.S., both Dralle and White emphasized the opportunity to learn and compete more effectively. As Dralle put it, the focus should be on how to “learn from China and take away what we can, and do it the U.S. way.” With operations in China, both Nexteer Automotive and Shape Corp. are uniquely positioned to apply those insights in real time. 

White reinforced this perspective, challenging the notion of China as purely a competitor. “We talk about well they’re the enemy. In our company, they’re a part of our company. How do we take the best of what the Chinese are doing and try to bring that and apply that back in our business here to raise the water level and make us more competitive here in Michigan?” he asked, underscoring a strategy rooted in learning, adaptation, and global integration. 

The 2026 MichAuto on the Island Industry Stakeholders Roundtable was sponsored by presenting sponsor KPMG LLP and supporting sponsors BCG, Denso, GS3, Nexteer Automotive, Toyota Motor North America, and Walbridge.