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IndustryArena Forum > MetalWorking Machines > Tormach Personal CNC Mill > Possible Tariff driven price increases
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  1. #1
    Join Date
    Apr 2011
    Posts
    720

    Possible Tariff driven price increases

    Hi all,

    NOT looking to start any kind of political discussion or rants, but I have seen discussion on other boards on this subject.

    It appears that on the lists of Chinese goods that would have tariff's applied are machine tools, specifically CNC tools.

    I only mention it because if there is anyone on the point of a decision about buying a new Tormach, it would seem that sooner would be better than later.

    Terry

  2. #2
    Join Date
    Dec 2009
    Posts
    458

    Re: Possible Tariff driven price increases

    On equipment like the Tormach and many other types of machinery, inevitably prices go up regardless of tariff or no tariffs. The general opposite of that is pricing going down with a corresponding drop in quality. Even when such a tariff doesn't directly effect some more unscrupulous companies, they will most likely take advantage of the opportunity to raise prices if they deem it plausible that their target market will believe that it's due to the tariffs. I think that tormach relies heavily on alot of Chinese made components. If you study economics, in the long run it may actually help stabilize the prices overall with a slim chance of even bringing the prices down. It all depends on who you believe. I already own one so, I think I'm good for now.

    To make a worse case scenario turn out for the better, maybe now Tormach should have an incentive to start making more of their own components. IF the tariffs work as intended and "Fair" trade is eventually reached, the prices of most things effected by the tariffs will have still gone up; maybe just not as quickly or sharply as many had hoped they wouldn't.

    HollowPoint

  3. #3
    Join Date
    Jul 2004
    Posts
    1424

    Re: Possible Tariff driven price increases

    Quote Originally Posted by MetalShavings View Post
    On equipment like the Tormach and many other types of machinery, inevitably prices go up regardless of tariff or no tariffs
    Tormach has been amazingly constant in pricing over the past 4+ years. But standby for that to all change in a heartbeat.
    Tim
    Tormach 1100-3, Grizzly G0709 lathe, Clausing 8520 mill, SolidWorks, HSMWorks.

  4. #4
    Join Date
    Nov 2007
    Posts
    2151

    Re: Possible Tariff driven price increases

    Quote Originally Posted by tmarks11 View Post
    Tormach has been amazingly constant in pricing over the past 4+ years. But standby for that to all change in a heartbeat.
    Maybe they have a way around it. "wink"
    If I remember my crate said "Designed in America and made in China"

  5. #5
    Join Date
    Feb 2009
    Posts
    281

    Re: Possible Tariff driven price increases

    Tariffs on CNC tools will be 25%, up from 4.7% currently, so that will have a significant impact on all the suppliers on this forum. Ironically it will help HAAS machine tools whose owner Gene Haas spent a year in jail over a dispute with the IRS. It's a gamble for people in the business whether they should spend all available cash now to buy inventory before the tariff or wait and hope the US and China come to some reasonable agreement.

  6. #6
    Join Date
    Mar 2009
    Posts
    1863

    Re: Possible Tariff driven price increases

    I have a PCNC 1100 with full enclosure, power drawbar, foot pedal, 17 inch monitor, control computer running Mach III and an 8 inch 4th axis and I still have less than $20,000.00 in it.

    When I had my shop, I had a Haas TM-1 with tool changer and 5C 4th axis and I had over $35,000.00 in that.

    If I had to pay $25,000.00 for a Tormach, I think I’d bite the bullet and buy a Haas.

    Yes, the Haas has more X and Y axis travel but I didn’t need the extra travel because if I can’t hold a half dozen parts in one hand, they’re too big for me.

  7. #7
    Join Date
    Feb 2009
    Posts
    281

    Re: Possible Tariff driven price increases

    Quote Originally Posted by Steve Seebold View Post
    I have a PCNC 1100 with full enclosure, power drawbar, foot pedal, 17 inch monitor, control computer running Mach III and an 8 inch 4th axis and I still have less than $20,000.00 in it.

    When I had my shop, I had a Haas TM-1 with tool changer and 5C 4th axis and I had over $35,000.00 in that.

    If I had to pay $25,000.00 for a Tormach, I think I’d bite the bullet and buy a Haas.

    Yes, the Haas has more X and Y axis travel but I didn’t need the extra travel because if I can’t hold a half dozen parts in one hand, they’re too big for me.
    Yes, and a 20% increase in landed cost does not mean only a 20% increase in retail- the business will factor in its profit margins etc. and probably raise prices by 25%. This is where flexibility becomes important, a company with a large fixed overhead and that uses bank loans to buy inventory is hog tied- a small company with low overhead and uses its own cash to buy inventory can often simply absorb the extra costs to maintain low prices and benefit from increased sales volume as its competitors raise prices.

  8. #8
    Join Date
    Aug 2013
    Posts
    980
    Quote Originally Posted by Steve Seebold View Post
    I have a PCNC 1100 with full enclosure, power drawbar, foot pedal, 17 inch monitor, control computer running Mach III and an 8 inch 4th axis and I still have less than $20,000.00 in it.

    When I had my shop, I had a Haas TM-1 with tool changer and 5C 4th axis and I had over $35,000.00 in that.

    If I had to pay $25,000.00 for a Tormach, I think I’d bite the bullet and buy a Haas.

    Yes, the Haas has more X and Y axis travel but I didn’t need the extra travel because if I can’t hold a half dozen parts in one hand, they’re too big for me.

    How is your new VF-3, STEVE?

  9. #9
    Join Date
    Jan 2007
    Posts
    1332

    Re: Possible Tariff driven price increases

    I paid 24.4% more for the same American made cast aluminum tooling plate bought after tariffs were announced than the week before. Don't believe tariffs are only going to only affect foreign made products. Everything made from metal will be more expensive now.

  10. #10
    Join Date
    Sep 2009
    Posts
    1856

    Re: Possible Tariff driven price increases

    Tormach is moving to canada
    http://danielscnc.webs.com/

    being disabled is not a hindrance it gives you attitude
    [SIGPIC][/SIGPIC]

  11. #11
    Join Date
    Apr 2013
    Posts
    1788

    Re: Possible Tariff driven price increases

    Wonderful! There is ample vacant industrial space near my shop!

  12. #12
    Join Date
    Jun 2014
    Posts
    1780

    Re: Possible Tariff driven price increases

    Tariffs equal jobs, in my book thats a good thing.......
    mike sr

  13. #13
    Join Date
    Dec 2009
    Posts
    458

    Re: Possible Tariff driven price increases

    Quote Originally Posted by popspipes View Post
    Tariffs equal jobs, in my book thats a good thing.......
    Tariffs can and do equal alot of positive things but over time we've been conditioned to expect the worse. To console ourselves we'll convince one another that we're hoping for the best but positioning ourselves to weather the worst of it; which, in and of itself is not an unwise thing to do; from a business stand point.

    Not being privy to all the details that went into imposing such tariffs it's no wonder we generally will drift into worse case scenarios. Sure, prices will most likely go up. They will have gone up anyway, with or without tariffs but, over the long haul and when looked at from the "Big-Picture" perspective, such a tariff as the one laid out by this particular administration (if carried out as intended) should have a stabilizing effect across the board. It's the fear-mongering that may cause such a tariff falter. And those who are hard at work spinning the fear mongering angle are generally those who stand to loose the most from the gravy train they've been riding.

    MetalShavings

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