Steven Woldenberg

It became much more difficult to make investment decisions.

It became much more difficult for us to move forward on investing in innovation, which is really what drives our business.

These are all things that were heavily disrupted in addition to resource allocation internally.

So coming into 2025, we were already working on resourcing our supply chain.

The president was very clear on the campaign trail.

He was going to impose tariffs.

You're talking about 60% tariffs on Chinese goods.

Is that in the cards?

No, I would say maybe it's going to be more than that.

We didn't think it would get that far.

We felt like it would settle in a little below that.

But nevertheless, we took him seriously, not his word, and we were beginning to look at resourcing our supply chain.

So we already had people working on this project.

However, after tariff rates spiked 145% for goods manufactured in China, we really had to double down.

It was, you know, make or break for us.

We've looked into it.

It really isn't possible in our industry at a price where a consumer would buy the product.

And so when we've looked to manufacture products in the U.S.

before, we've sent items out for quotes and they typically come back with prices that range from 10 to 20 times higher than what we would pay.

That's correct.