Why your next security project might cost more? Thank the Tariffs!

By Gina Stuelke, CEO of Kenton Brothers

Tariffs are hitting every industry… particularly those targeting Chinese imports and electronic components. This has resulted in several significant effects on the physical security industry. Here are the top three ways they’re impacting this sector:

1) Increased Hardware Costs

• Impact: Many security products, such as surveillance cameras, access control panels, and network video recorders (NVRs), rely on imported components (e.g., semiconductors, circuit boards) or are fully manufactured abroad, especially in China.
• Result: Tariffs (e.g., under Section 301 in the U.S.) have raised the cost of importing these goods, leading manufacturers and integrators to either absorb the higher costs, pass them onto customers, or seek alternative suppliers—often at higher prices or with lower quality.

2) Supply Chain Shifts and Delays

• Impact: To avoid tariffs, many companies have shifted production to alternative countries (e.g., Vietnam, Mexico, or India), which has disrupted established supply chains.
• Result: This realignment has caused production delays, limited product availability, and longer lead times for projects, particularly for integrators relying on just-in-time inventory models.

3) Product Redesign and Re-certification Costs

• Impact: Some manufacturers have redesigned products to eliminate tariffed components or qualify for tariff exemptions.
• Result: These changes often require new certifications (e.g., UL, FCC), increasing R&D and compliance costs. Integrators may also need to retrain staff or adjust installations due to changes in product specs or form factors.

As tariffs continue to reshape the landscape, staying informed and adaptable isn’t just smart. It’s essential for protecting both your assets and your bottom line. We’re here to help. Give us a call.