Navigating Tariffs & Economic Volatility

Adam Robinson
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July 22, 2025
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minutes

Proven Strategies for Transportation and Logistics Companies

The Transportation and Logistics industry is grappling with increased economic uncertainty, driven by fluctuating tariffs and unpredictable market conditions. Adam Robinson, Director of Marketing for Transportation & Logistics at Lean Solutions Group (LSG), recently shared his insights into strategies companies can adopt now to maintain their profitability and agility, well into the future. With the latest insights from LSG and its experience with over 600 clients, together with supporting analyses from Deloitte and Boston Consulting Group (BCG), and recent forecasts from FTR Transportation Intelligence, Adam takes us through the latest strategies for transportation and logistics organizations. In the sections below, we’ll look at cost management, tariff distortions, technology, and workforce strategy.

Actions for Immediate Cost Management & More Flexibility

First, let’s tackle the most immediate pressure point: operating costs. Labor costs hugely impact logistics operations, and Adam emphasizes the critical importance of agile cost management during uncertain economic periods. He shares how companies are carefully and quickly optimizing their workforces, scaling teams up or down as needed without sacrificing core, skilled talent. Using near-shore staffing, businesses can adjust quickly to market shifts, maintaining low costs and managing risks. Adam shares the example of a third-party logistics provider (3PL) that discovered optimum ways of scaling its workforce as market demands drove necessary changes, while maintaining service quality and avoiding disruptive hiring and firing cycles.

Deloitte similarly emphasizes the importance of agility in responding to tariff-related pressures. They recommend organizations reassess their supply chains, leveraging near-shore opportunities to mitigate risks and minimize costs, increasing their resilience to the potential for tariff-induced volatility. Deloitte further advises that careful scenario planning and a thorough understanding of tariff implications are foundations for navigating future market uncertainty.

Tariffs Can Distort Views of the Economy

Recent analysis from “FTR Transportation Intelligence” (FTR) provides an essential backdrop to Robinson's insights. FTR forecasts a significant 21% increase in tariff rates for 2025, which is expected to impact inflation and economic stability negatively. Their report highlights unusual market behaviors from early 2025, such as inventory prebuying, a surge in imports, and spikes in automotive and trucking equipment purchases. These actions are distorting economic results, putting at risk organizations’ attempts to buffer themselves against the possibility of higher costs from impending tariffs.

Imports increased by 20% year-over-year in March 2025, FTR reported, due to anticipatory inventory purchases. Additionally, vehicle sales reached record highs, driven by consumer urgency to avoid upcoming tariff-driven price increases. FTR predicts these elevated activities will sharply reverse, causing a substantial slowdown in market activity by late 2025 – extending into 2026.

Adam addresses another challenge being made worse by economic volatility: employee turnover. He advocates for robust retention programs that emphasize clear career progression, employee recognition, and incentive-driven bonuses. These strategies have effectively lowered attrition rates, significantly reducing the additional costs of frequent hiring and retraining. In one instance, Adam shared that putting structured retention initiatives in place reduced monthly attrition rates from nearly 9% to just 3% within a month for one transportation provider.

Deloitte corroborates the importance of workforce stability in the Logistics and Manufacturing industries. Workforce shortages, they found, could result in 1.9 million unfilled manufacturing jobs by 2033, making employee retention a dire strategic priority for organizations seeking to sustain operations amid economic uncertainty.

Technology for More Efficient Operations

Beyond macroeconomic pressures, internal efficiency levers like technology can enhance operational efficiencies. Adam highlights technology as a critical factor for organizations as they navigate the current volatility. He shares how leveraging technology for tasks like track-and-trace, billing, and carrier sales, will significantly enhance efficiencies. And integrating technology with effective workforce management reduces cost per load, maintains visibility, and sustains high service levels – all essential during periods of tariff-induced margin pressure.

BCG aligns with Adam’s perspective, recommending strategic investments in automation, artificial intelligence (AI), and dynamic pricing models to enhance efficiencies and maintain competitive advantages. BCG emphasizes that digital transformation will help transportation providers manage costs better and improve response times: gains that are essential advantages for surviving economic disruptions.

Responding to Tariff Impacts Strategically

Adam, like Deloitte and BCG, emphasizes the importance of proactive strategic planning to mitigate the impacts of tariffs. Deloitte suggests employing detailed tariff scenario analyses to prepare comprehensive risk mitigation strategies. Companies should map their entire supply chain exposure, understanding both direct and indirect tariff implications and carefully evaluating mitigation options, including duty exemptions, renegotiations, and sourcing adjustments.

BCG highlights that transportation providers must also anticipate broader implications for global trade flows. Tariffs can lead to substantial supply chain restructuring, requiring logistics organizations to remain agile and prepared to adapt rapidly. Logistics providers should consider diversifying geographic sourcing and transportation routes, strengthening their position in regions less affected by tariffs to minimize disruptions.

Future-Proofing with Scenario Planning

Adam also underscores the importance of comprehensive scenario planning, noting that the increasing likelihood of unpredictable factors – from sudden regulatory changes to shifting geopolitical dynamics – necessitates that companies adopt robust and agile planning processes. By evaluating multiple potential scenarios, organizations can better prepare themselves, ensuring resilience and continuity as tariffs fluctuate and economic conditions evolve.

FTR recommends that businesses brace for reduced market activity following the initial surge in pre-tariff purchasing. Their forecast advises caution, highlighting that many segments will experience swift corrections in demand, further stressing the need for detailed scenario planning and cautious operational strategies.

Agility and Strategic Preparation Are Key

Navigating tariffs and economic volatility requires companies to maintain exceptional agility, strategic foresight, and disciplined operational planning. Adam Robinson's insights, enriched by analyses from Deloitte, BCG, and FTR, present a clear strategic roadmap. The key elements—cost management flexibility, technology-driven operational efficiency, robust employee retention programs, proactive tariff mitigation planning, and comprehensive scenario analysis—are essential to ensure resilience.

Businesses that integrate these strategies effectively will weather current uncertainties while positioning themselves ideally for future growth, enabling a more competitive performance through short- and long-term market challenges.

ABOUT THE AUTHOR

Adam Robinson is the Transportation & Logistics Content Director at Lean Solutions. Adam is a data-driven storytelling marketer who has fallen in love with the quest to make supply chains as high-functioning, collaborative, waste-free, and productive as possible in an altruistic endeavor to maximize human capital. Adam works at the intersection of sales, marketing, and product, giving me a unique opportunity to build a community around a platform that meets my passion & personal mission of hyper-efficiency.

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