Product engineering solutions that protect your bottom line in a shifting global trade landscape

Over the past few decades, many U.S.-based companies embraced global sourcing to reduce production costs and remain competitive. Manufacturing in countries like China, Vietnam, or Mexico was the standard strategy for launching consumer products, medical devices, and industrial equipment at scale.  

But with new tariff regimes, trade wars, and supply chain disruptions, what once made sense on paper is now triggering unexpected costs and logistical headaches. These challenges are nothing new for the engineering world – the COVID pandemic and unstable political situations over the past few years have caused ongoing friction with this dynamic. 

As global trade policies continue to shift, U.S.-based companies are increasingly feeling the sting of tariffs and import taxes on products and components manufactured overseas. At Prodigy, we’ve seen this transformation up close. As a product engineering and development firm, we’re often brought in when teams are feeling the pinch—when landed costs are suddenly higher than anticipated, and leadership is asking, “How do we fix this without starting over?” 

The good news? You don’t have to go back to the drawing board. Smart design can do more than just make your product functional—it can make it strategically viable. Whether you’re launching a new product or navigating changes in your existing supply chain, our team is uniquely positioned to help you reduce tariff exposure through strategic product design, documentation, and sourcing support. 

The Problem: Tariffs Are a Hidden Cost Driver 

Tariffs can sneak up on your balance sheet, especially when they’re applied to components, subassemblies, or materials that weren’t originally part of your cost planning. We’ve seen clients face unexpected margin pressures due to reclassified goods or sudden changes in trade policy. Once the tariff hits, the clock is ticking. 

Our Approach: Design-Led Tariff Mitigation 

At Prodigy, we help clients take control of tariff exposure by rethinking how a product is designed, documented, and shipped. Some of the ways we’ve helped: 

• Modular Design: Breaking a product into distinct components or assemblies that can be manufactured or sourced differently to fall under lower tariff classifications. 

• Documentation Strategy: Clearly defining the scope and ownership of design documentation so our clients maintain the flexibility to source globally while staying compliant with trade laws. 

• Designing for a Robust Supply Chain: Designing components and assemblies to allow for multi-supplier relationships, and simplifying design to allow for easier ramp-up. 

A Real Example: Redesigning for Cost Savings 

We recently help one of our leading Medical Device Clients (MDC) realize significant cost savings by rethinking their supply chain. MDC wanted to reduce the cost of a component in their product. The component was designed by an external company and made by a contract manufacturer. The manufacturer sells the part to a distributor and then buys it back to sell to MDC. The cost per unit for MDC is between $4-5 at 500,000 units per year, leading to an annual spend of $22.5 million. MDC believes that by working directly with the external company that designs the component, they can reduce the cost to about $1 per unit. This would save them over $1.5 million annually, reducing the total spend to around $500,000, which is savings of over 75%. 

To start, MDC asked Prodigy to check if there were any patents on the component design. Prodigy found that there were no patents that would prevent a redesign. MDC’s legal team reviewed these findings and gave the go-ahead to redesign the component with their own branding. Next, MDC worked with Prodigy to create a new part that could replace the original component. Prodigy provided the data and drawings so MDC could make a prototype and test it to ensure it worked the same way. 

With Prodigy’s help, MDC was able to reduce the cost of the component from $4-5 per unit to $0.40 per unit. This lowered their annual spending on the component from $2-2.5 million to just $200,000. This means they achieved a 91% cost savings, which is much higher than the 75% they initially expected.  

Collaboration Is Key 

We work hand-in-hand with your sourcing, compliance, and legal teams to ensure all design modifications support your tariff mitigation goals. Our deep experience in documentation and engineering standards means we’re not just designing for function—we’re designing with your financial and regulatory constraints in mind. 

The Prodigy Difference 

We’re more than engineers—we’re strategic partners. Our multidisciplinary team understands the intersection of design, manufacturing, and global trade, allowing us to craft solutions that protect both your product vision and your margins. 

If tariffs are making your product less competitive, let’s talk. We can help you find a smarter path forward—one design decision at a time.  

Let’s Chat 

Ready to see how strategic design can reduce your tariff exposure? Reach out to our team today. 

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