Utilizing Its Strategic Edge in Robotics, a Company Navigates Tariff Disturbances Effectively
Facing the Storm: Carnegie Robotics and the Tariff Tumult
Carnegie Robotics, a 15-year-old tech powerhouse based in Pittsburgh, finds itself in the thick of a trade storm. The company, renowned for its high-tech robotics sensors catering to industrial uses, is caught in a precarious dance between a volatile trade environment and growing business opportunities.
In Grant Gross, Carnegie Robotics COO's words, "Two things can be true at the same time." On one side, the new tariffs under President Donald Trump are driving more companies to choose American-based manufacturers. This new landscape presents a unique opportunity that hasn't been visible for the last 25 years. On the other side, these very tariffs are making things harder for American manufacturers to remain competitive.
Autonomous and Conflicted
Every product that Carnegie Robotics builds and services, from its mining and agricultural applications to its work with the Department of Defense, relies on custom autonomous systems and robotics components. These include stereo cameras for autonomous vehicles and global navigation satellite system sensors for precise navigation. The heart of many of these projects revolves around stereo cameras using two or more lenses for depth perception and 3D imaging. But the key to success lies in acquiring the right components - a challenge now, thanks to the new tariffs.
Lenses made in China, both cheaper and of higher quality than those produced in the U.S., have become the crux of the issue. "We're kind of stuck," Gross concedes. "We're either going to have to move to a lower-quality lens or just eat the tariff cost and find a way to be creative in how we maintain our pricing."
Riding the Wave of Reshoring
While Carnegie Robotics contends with supply chain challenges due to tariffs, it is also set to benefit from the increased demand for its products and services. With more reshoring expected in the U.S., much of the work is likely to be automated, requiring real-time sensor data.
Kearney's 2025 Reshoring Index survey, conducted earlier this year, revealed a significant spike in reshoring interest, signaling that the desire to build or expand operations in the U.S. is far from waning. In fact, the percentage of CEOs planning to reshore part of their operations within the next three years rose by 15% compared to last year's report.
The Human Edge
Gross is utilizing all Carnegie Robotics' resources to cut costs and seized opportunities. As costs rise with new tariffs, the company's goal is maintaining pricing, viewing value in being a reliable supplier for its customers. Gross attributes this success to his dedicated team, "I have a team behind me that attacks problems like no other."
Analytical and proactive thinking is vital to achieve that goal, benefiting both Carnegie Robotics and its customers. "I like to say 'We build robots, we don't employ robots,'" Gross says.
Lastly, Carnegie Robotics wields its diverse customer base as a competitive advantage. "It's been fortunate for us. When one industry's down, another one's up," Gross explains. "Our trajectory has been more consistent than others."
Tariffs present new challenges, but they also provide opportunities to improve and grow. "It drives us to get better at lean manufacturing, automation, and finding the right vendors," Gross affirms. "It is a new world, and there is certain uncertainty. It's going to come down to who has the right people that are going to be driven and make some hard decisions to stay ahead of the curve."
In the face of the tariff-induced trade storm, Carnegie Robotics, a company known for its robotics sensors in both industrial and defense sectors, must navigate between the dual pressures of increased business opportunities from reshoring and the challenge of acquiring costly components due to tariffs, particularly high-quality lenses originally sourced from China.
Amid these trials, Grant Gross, COO of Carnegie Robotics, emphasizes the importance of effective cost-cutting strategies, innovative thinking, and a dedicated team to maintain the company's competitive edge in the technology-driven business and finance landscape.
