As the Trump administration continues to leverage trade tariffs in an attempt to rebalance what it perceives as unfair international trade arrangements, manufacturers in the security industry are faced with the tough decision to either absorb the tariff cost or to pass that cost onto the customer. 

Christine Lanning, president, Integrated Security Technologies Inc., says, “I understand the ongoing uncertainty around tariffs have caused some manufacturers to preemptively or perhaps arbitrarily increase prices. However, higher priced equipment will only drive customers to shop equipment more competitively.”

Lanning continues, “Additionally for the integrator community, the uncertain nature of these ‘potential’ tariff impacts make it difficult for us to commit to long-term volume and pricing agreements with our customers. Take government customers for example, who often require 4-to-6-month lead times from price quote to contract funding. Projects that rise above the contracting officer’s earlier market research cost projections may be put on hold until more funding can be secured, or they may simply be cancelled.”

Lanning concludes, “My advice to manufacturers who want to continue to drive installation volume for their products; wait to see what happens before preemptively or arbitrarily increasing prices.”

Hanwha Vision recently announced that it would not raise prices on its surveillance technologies despite rising tariffs and market disruptions. The company said it will absorb any additional costs created by tariffs on components integral for manufacturing surveillance cameras and devices, adding that supporting dealers and end users is the highest priority, especially in the face of uncertain economic and market conditions.

“Our partners need support, not surprises,” says CH Ha, president, Hanwha Vision America. “Their focus should be on choosing the right surveillance technologies without the distraction of tariff-induced price hikes potentially disrupting their business models and project plans. By clearly communicating price clarity, we’re building long-term confidence in our partner relationships while protecting their margins.”

Hanwha Vision says its pricing policy emphasizes the importance of aligning business strategies with a manufacturer that prioritizes stability and support for the long term. “Our prices will stay put," CH Ha adds. “We’ll work with you to protect your margins.”

Bill Clements, vice president & owner, V2 Systems, says, “As an integrator/owner of V2 Systems, Hanwha Vision’s decision to absorb tariff-related costs is a game-changer. It allows us to maintain stable pricing for clients without sacrificing margins. Unlike other vendors passing on 10-20 percent price increases due to tariffs, Hanwha’s price-lock guarantee lets us bid confidently without worrying about sudden cost hikes disrupting project plans.”

Jon Adams, vice president of sales, DMP, says, "Historically, we’ve always kept a large amount of safety stock — not just in finished goods, which is usually six to eight weeks, but also in components. During COVID — and a lot of our customers will definitely recall this — there was that shortage that most people experienced. We did not experience that. We never had a DMP manufacturer product go on backorder because of a component issue. We’re very well insulated for that. We’re going to hold off on any sort of increases, but certainly we haven’t had a need to. We actually anticipate not having to pass that on. We have spread out where we purchase our components from significantly over the last 10 years, and we’re going to continue to negotiate with our buyers as best as we can."