Keeping Data Center Racks Price Stable in Tariff Wars

While the soybean market is getting the lion’s share of media coverage over the impact the tariffs are having on businesses, the price of steel is also being affected.

What is causing the increase in data center racks and cabinets?

When imposed last year, steel and metal tariffs began driving up both uncertainty and the cost to construct, expand or modify data centers. As policymakers and politicians argue the merits of enacting the tariffs, it has been up to suppliers of these materials to buttress against cost increases they’ve incurred.

GAW's data center racks and cabinets pricing remains stable

To do this, GAW Technology has taken an aggressive and proactive approach to maintaining stable pricing for our clients long before the tariffs were put in place with these 3 practices:

1. By continuing to monitor the global markets and economies around the world, we foresaw the need to further increase our stockpiles of the select metals we use to construct our server racks. We use a quality grade metal, so it was prudent for us to have a strong supply of these materials for our clients.

2. Having already developed a strong network of reliable suppliers, we expanded that base even further to secure our raw material needs. When the demand rose from the tariffs, we now have even more options to source the specific quality metal we use in our manufacturing process.

3. By having state-of-the art equipment that automates production, we were able to keep costs stable during market fluctuations.

Unexpected cost increases are never good for business. While the federal government continues to engage with other countries and uses tariffs as leverage in those negotiations, it will be up to businesses to find ways to help one another keep costs steady. Like the products we build, providing stability is what GAW Technology does best.

For more information on the capabilities of seismic racks and other products, contact Chuck Gaw.