September 5, 2025 Repair Agreements Give Manufacturers a Competitive Edge

As trade uncertainty drives up costs and disrupts supply chains, service repair agreements help manufacturers stay lean and resilient.

By Ken Feinstein, Vice President, MIDCOM Data Technologies

Trade Tensions Are Shaping Investment Decisions

US manufacturers are being forced to navigate a global economy riddled with protectionist policies creating one of the most complex trade landscapes witnessed in decades. Tariffs on imports from China and other developing nations have created a domino effect across industries, inflating costs and straining already fragile supply chains. Many companies are seeking ways to hedge against these changes, and while some large enterprises are investing heavily in reshoring, others are searching for lower-risk, cost effective strategies to remain competitive, or even in business at all.

For example, pharmaceutical giant AstraZeneca recently announced a $300 million investment in US-based manufacturing facilities, a move widely viewed as protection against escalating trade barriers. High-tech and consumer goods manufacturers are following suit with similar domestic investments aimed at insulating their operations from geopolitical fallout.

However, this type of large scale investment is not feasible for many small- and mid-sized manufacturers. These businesses often operate on thin margins, with capital tied up in existing infrastructure and global supplier relationships that cannot be replaced overnight. While headlines celebrate billion-dollar factory groundbreakings, the reality for many manufacturers is that they must find ways to adapt without taking on significant financial risk.

The Value of Repair and Maintenance

One such strategy gaining traction is renewed focus on repair and maintenance programs for mission critical technology. While the pace of innovation often drives companies toward frequent equipment upgrades, today’s economic climate has put a spotlight on asset longevity.

Barcode scanners, label printers, handheld devices, and other factory and warehouse technology are essential for day-to-day operations, yet sourcing new hardware is increasingly expensive. Import duties, component shortages, and long lead times are making traditional equipment replacement strategies impractical.

Service repair agreements offer manufacturers a way to:

• Extend equipment lifecycles without sacrificing performance
• Control maintenance costs through predictable service pricing
• Minimize downtime with guaranteed turnaround times and access to certified technicians

In this climate where every capital expenditure is scrutinized, these agreements provide a buffer against outside policy decisions, helping companies stretch budgets while keeping critical technology in service.

Repair vs. Replace

The decision to repair or replace equipment has always been part of operations planning, but tariffs and supply chain constraints are tilting the equation heavily toward repair. Equipment sourced internationally is now subject to elevated duties, while shortages in semiconductors, batteries, and optical components extend lead times and make replacement costlier than ever.

A comprehensive repair program mitigates these challenges in several ways, including:

• Predictable Costs: Fixed repair fees allow finance teams to plan effectively
• Fast Turnaround: Quick swap loaner devices minimize operational disruptions
• Inventory Flexibility: Manufacturers avoid costly stockpiling of replacement devices

These benefits are particularly critical in warehousing, logistics, and manufacturing environments where downtime has a direct impact on service-level agreements (SLAs) and customer satisfaction. Choosing repair over replacement is about safeguarding continuity in addition to cost savings.

Lean Operations Require Reliable Tools

Lean manufacturing principles have been a guiding framework for manufacturers for years, but trade-driven price volatility adds another layer of difficulty. Stockpiling spare parts or backup devices, once a standard strategy for risk management, is becoming less feasible as prices fluctuate.

With proactive service agreements, companies can take a more measured approach:

• Operations leaders can ensure devices are repaired quickly and consistently
• Procurement teams gain flexibility, avoiding knee-jerk purchases at inflated prices
• Finance leaders can allocate funds more strategically, knowing repair costs are locked in

The result is a more predictable, resilient operation that can adjust to demand surges or slowdowns without being burdened by sudden equipment shortages or cost spikes.

Repair Agreements as a Strategic Lever

In response to global trade policy, many companies are developing long term plans for reshoring or diversifying supply chains. However, those plans take years to execute. Manufacturers cannot afford to wait for policy stabilization before taking action to protect their operations.

Service repair agreements serve as a bridge between today’s realities and tomorrow’s ambitions. They allow companies to invest strategically in automation, workforce development, or reshoring initiatives while avoiding unnecessary capital outlays on hardware. By focusing on extending the life of existing assets, businesses can allocate their resources toward growth rather than replacement.

Repair programs also support broader goals such as sustainability. Extending device lifecycles reduces electronic waste and lowers the environmental impact of manufacturing new hardware, aligning with growing ESG initiatives and customer expectations around responsible operations.

Real-World Benefits

Manufacturers across multiple sectors are finding value in these agreements. For example, a regional food service distributor recently transformed its operations by replacing a reactive repair model with a strategic device management program. The company had relied on a fleet of rugged scanners to support daily deliveries and inventory tracking, but frequent breakdowns (particularly cracked screens and slow load times) created recurring disruptions. With only a handful of backup units, delivery schedules suffered, split shifts became common, and outdated hardware struggled to support outdated software systems.

Instead of continuing to patch aging devices, the company implemented a three-phase plan:

1. Stabilize Operations: Every scanner was enrolled in a consistent repair and coverage plan to reduce downtime and provide a predictable service pipeline
2. Modernize Hardware: A fleet of next-generation scanning devices replaced outdated units, offering better durability, higher performance, and long term compatibility with new applications
3. Secure Assets: A smart cabinet system with PIN-based access and remote monitoring added a critical layer of security, ensuring devices couldn’t be misplaced or misused

This approach delivered measurable results:

• Significant reductions in downtime through reliable equipment and planned coverage cycles
• Improved productivity by ensuring drivers always had working devices, minimizing delays
• Greater asset visibility and security, reducing waste from device loss or theft
• Future-ready infrastructure designed to scale with upcoming software and OS updates

The program solved both an immediate hardware challenge and positioned the company for scalable growth. By combining repairs, phased technology upgrades, and intelligent asset control, the distributor moved from a reactive posture to a proactive, strategic model for managing mobile technology. This case illustrates how equipment repair and lifecycle management strategies can deliver a strong ROI while reinforcing operational resilience.

Building a Flexible Future

Policymakers may continue to adjust tariffs and trade regulations, but businesses need solutions that work right now. Service repair agreements deliver that flexibility. For companies with aging infrastructure, tight budgets, and an increasing reliance on technology, these programs offer a practical way to maintain operational excellence while navigating uncertainty.

About the Author:
Ken Feinstein, Vice President of MIDCOM Data Technologies, helps IT leaders minimize downtime and drive productivity. He leverages cutting-edge technologies and tailored service programs to deliver measurable results. Committed to excellence, he is dedicated to ensuring consistently high-quality service and reliable IT outcomes.

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