AccuRounds: A Manufacturing Success Story in the Age of Tariffs
Transforming Challenges into Opportunities
AccuRounds is emblematic of the type of high-end manufacturing firm that stands to gain from the Trump administration’s tariffs. After a relatively sluggish 2024, the company is now firing on all cylinders. Workers are putting in overtime as they transform steel rods into hundreds of specialized industrial gadgets, and an increasing demand has led the company to expand its workforce. Revenue jumped by 20 percent in the first quarter of 2025, with similar expectations for the current quarter, marking a promising turnaround for a company that generated about $20 million in revenue last year.
Precision Engineering at Its Finest
At its core, AccuRounds specializes in precisely machined metal components that play critical roles in larger machinery. These parts find their way into an impressive array of applications—from commercial aircraft to industrial robots and even drug manufacturing systems. For example, some components are crucial for pumps that dispense glue used in assembling iPhones, while others are driveshafts integral to machines producing influenza vaccines. The company also manufactures surgical tools like trephenes, utilized in corneal transplants, and components for high-end flutes played by professional musicians.
A Modern Manufacturing Facility
Unlike the image of grimy machine shops of the past, AccuRounds boasts a clean, well-lit facility equipped with advanced computer-guided milling machines. Each machine, costing hundreds of thousands of dollars, has Plexiglass windows constantly splattered with cutting oil, which serves to cool and lubricate the cutting tools, clearing away metal debris. The machining process involves feeding twelve-foot steel rods into mills where they are automatically shaped, drilled, and cut into their final forms.
To further streamline operations, the company has recently installed robotic arms at some milling machines. These robots, made by Universal Robots, optimize efficiency by autonomously picking up tiny metal parts and placing them into trays, allowing machines to run unattended for hours.
Adapting to Change: A Commitment to Workforce
Despite advancements in automation, AccuRounds’ President and CEO, Tamasi, emphasizes that technology will not replace jobs; it will change them. "It’s a commitment that we’ve made to our team here," he states. The goal is to ensure that employees are not displaced by automation but are provided with new opportunities and skills.
Surge in Revenue Post-Tariffs
AccuRounds’ recent revenue uptick can be traced back to the tariffs imposed following Trump’s re-election, as the administration sought to revitalize U.S. manufacturing. Tamasi notes a marked change in customer behavior; for instance, one client who previously sourced components from machine shops in Singapore and China has reconsidered their outsourcing strategy due to tariff implications.
Effects Across the Industry
AccuRounds is not alone in this phenomenon. Other manufacturers, like Canton-based Remtec, which creates printed circuit boards for electronic devices, have also reported growth attributed to reshoring efforts prompted by the tariffs. Company president Brian Buyea observed an uptick in interest long before the Trump administration took office, with customers actively seeking to bring their supply chains back to the U.S.
Understanding the Costs of Tariffs
While some manufacturers see benefits from reduced foreign competition, economists caution against the overall economic implications of tariffs. Scott Lincicome from the Cato Institute argues that while there may be short-term winners, tariffs often result in a net loss for consumers and businesses, ultimately leading to slower growth and reduced economic efficiency.
AccuRounds, with only about 5 percent of its revenue from exports, is somewhat insulated from retaliatory tariffs on U.S. goods. However, the steel tariffs do pose challenges, as Tamasi pointed out. Despite a preference for U.S.-made steel, he has had to continue importing due to quality and consistency issues, even in the face of a 50 percent tariff.
Navigating Supply Chain Complexities
The company’s sales contracts allow it to pass on any increases in steel prices to customers, which offers some protection from tariff burdens. Yet, significant investments are required to purchase new milling machines, with prices commonly exceeding half a million dollars. Notably, these machines must often be imported from countries like Switzerland, Germany, and Japan, presenting yet another hurdle influenced by tariffs.
In navigating this complex landscape, Tamasi remains focused on what matters most: ensuring that if customers are prepared to cover the costs, then AccuRounds is poised to thrive amid the ongoing tariff saga.
