In Uncertain Times, Supplier + Worker Engagement is More Critical than Ever

As Trump-era tariffs disrupt supply chains, brands must not pull back on worker and supplier engagement. Resilient supply chains weather economic storms better — and recover faster.

Loyalty Drives Faster Recovery

Suppliers and workers remember the brands that stood by them during COVID. Those brands saw production rebound 75% faster, and their orders were prioritized post-crisis. Loyalty pays off again now: supporting your suppliers and their workers shows long-term thinking and operational excellence, positioning you as a forward-thinking, investable company.

Workers Will be the First to Be Hurt

Value chain workers will feel the squeeze first. Reports of worker layoffs are already emerging.

Jason Judd of Cornell highlights the stakes: in places like Sri Lanka, wage cuts or job losses mean hungry children and desperate families. Keeping people central to your strategy is a moral, strategic, and in some places legal, imperative.

Risk Management is Non-Negotiable — Especially in Volatile Times

Downturns push suppliers to cut corners, increasing risks of labor violations and safety lapses. Brands remain accountable, even as orders slow. Due diligence helps you catch risks early, avoiding costly legal, financial, and reputational damage when it matters most.

Everyone is Watching

Consumers, investors, and watchdogs are scrutinizing supply chains. Reputational risks are magnified in crises. Good decisions today will protect your brand and earn trust tomorrow.

Due Diligence continues to be an Investment, Not an Expense

While others retreat, proactive supplier due diligence helps you manage risks, maintain resilience, protect your reputation, and seize competitive advantage — all while preparing for recovery.

As Aron Cramer of BSR recently reminded us, “The volatile economic impacts of the tariffs should remind all of us "people must always be central to the sustainable business agenda.”  

More Reading: Supporting Workers + Suppliers Through Turmoil + Transition: A Collection of Case Studies

Labor Solutions has supported suppliers and brands through various supply chain and regional instabilities, where unrest threatens workers' livelihoods. Time and time again, Labor Solutions' tools have proven critical in crises. Labor Solutions helps maintain clear communication, gather real-time worker insights, and support proactive decision-making. It has helped suppliers keep workers engaged and enabling brands to offer timely support when suppliers are stretched. By listening directly to workers, companies can spot risks early, strengthen compliance, and ensure supply chain stability — proving that worker engagement is not just ethical, but essential for long-term resilience. Read more case studies here.