Turbulence with Tariffs: What Operators Need to Know

Every successful business needs to have a “re-energize strategy” or “expansion plan” to drive future revenue, profits and valuation. If you're building, expanding, or even just repurposing, new tariff challenges are now part of your operating reality.

In 2025, U.S. tariffs reached their highest levels since 1934. While many of the headlines focus on international politics, there is looming pressure on the casino floors, in hospitality amenities, and across numerous capital development projects in progress.

Here’s how they’re reshaping the game—and how to stay one step ahead.

Capital Projects Are Bearing the Brunt

Steel, fixtures, and other durable goods—many sourced internationally—are now significantly

more expensive, meeting critical timelines is an issue and products are harder to procure. What

typically might have taken three to six months to procure might now take six months to a year,

with cost increases north of 20% - or even more. Source: sdi.com

Delays like these don’t just impact opening dates. They cause frustration and operating challenges. They ripple through cash flow, vendor compliance agreements, and ROI timelines. Certainly, if you’re not planning for these shifts, you’re already behind.

Relationships Are the New Currency

You can’t always control the global trade climate—when your margins are under pressure and

timelines are slipping, the difference between success and failure often comes down to who’s in

your corner.

“Procurement used to be mostly about price. Now it’s about trust,” Loren Gill shared. “You’re not just buying goods—you’re buying reliability, speed, and access when everything’s backed up.”

A recent project in Canada hit a standstill when U.S.-made slot machines were held up at customs due to retaliatory tariffs. Thanks to a personal referral, LD2G stepped in and connected the client with an Australian supplier unaffected by the U.S.-Canada trade tensions. The result? A fast solution and a renewed focus, and project back on track.

Strong leadership isn’t about avoiding disruption. It’s about navigating through with clarity, creativity, having flexibility in the planning processes, and the right partners on your team to help you find smart, effective solutions.

Don’t Forget the Hidden Costs

Retaliatory tariffs from countries like China, Canada, and the EU aren’t just slowing imports—they’re restricting U.S. exports. That means your expansion plans, international deals, or cross-border procurement could hit costly roadblocks.

This isn’t just about economics. It’s about operational resilience.

Lead with Strategy, Not Panic

The smartest operators are shifting from reactive procurement to proactive strategy.

That means:

• Build strategic relationships that withstand market disruptions, pressures and be able to quickly adjust to market changes

• Keep projects moving by diversifying supply chains and maintaining buyer flexibility

• Avoid budget surprises with proactive cost forecasting and cost discipline

• Manage inventory proactively by ramping up opportunistic buying and building reserve inventory

• Plan for long-term, multiple property synergies and solutions

In a volatile market, flexibility isn’t a luxury—it’s a lifeline.

We encourage our clients to build procurement and sourcing strategies that anticipate and adapt to change.

📅 Schedule a Strategy Session | Unlock Strategic Clarity. Gain tailored insight into how transformational procurement and sourcing could become the driving force behind your capital or operational projects, while navigating critical decisions with clarity and shared vision.

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