June 5, 2019
RE: PROPOSED MEXICO TARIFFS HAVE LIMITED IMPACT ON UNITED ENERTECH
Dear United Enertech Representative,
United Enertech designs and sources in the USA and manufactures our products at our Chattanooga, Tennessee and Hartford, Alabama facilities. Presently, the proposed tariffs will only have a very small impact on certain supplies. For this reason, United Enertech plans to absorb any cost increase for the planned Mexico tariffs announced May 30, 2019. Company management continues to monitor the situation closely and will alert you in case of any adverse impacts to our supply chain.
While United Enertech is experiencing an overall increase in labor and health care costs, we expect to offset these costs with material savings, labor efficiency gains and value engineering. In fact, we already lowered pricing on many products earlier in 2019.
Finally, United Enertech is maintaining excellent lead times on standard product and installed additional rush capacity to assist during the 2019 busy season. Please let us know how we can help you!
President & Executive Chairman