Elevator maker Otis (OTIS), which was established in 1853, has seen quite a few economic cycles. And as its products are key construction components, it’s often considered an economic bellwether in markets like the US and China.
But the recent trade volatility hasn’t been easy for Otis, veteran CEO Judy Marks told Yahoo Finance’s Brian Sozzi.
“Right now, some sources for some components are at scale in China that we don’t manufacture,” Marks told Sozzi. “We’ve searched for sources here. We’re moving supply around. We’ve asked suppliers to set up manufacturing facilities here, because it’s just not things we would do, but everything else. We do have the ability, because of this common platform, to manufacture here in the United States and to assemble in Florence.
“I think we’ve mitigated the majority of the tariff impact. It’s a lot bigger number than it was in 2018, when the tariffs were between maybe 15% and 25%, between section 301 and section 232, but, you know, these retaliatory tariffs at 145%-plus, that’s what’s really added up.”
