What Risks do Distribution Centers Face Following Tariff Changes?

Since the election of President Donald Trump, he has laid out various plans across different sectors of the United States, however, most recently there have been heavy discussions and announcements regarding import tariffs into the country.

Although a pause has now been placed on the initial tariffs with most countries, many distribution centers have been faced with increased stock as businesses aimed to import goods prior to the tariffs being implemented.

But, what does this truly mean for distribution centers and how can you prevent these security risks from happening to you?

Understanding The Recent Tariff Changes

Tariffs are taxes charged on goods bought in from other countries, and President Donald Trump recently announced adjustments in these in order to boost US manufacturing and protect jobs.

During his announcements he placed higher tariffs on some countries and a 10% tariff on all others. For example, if a product’s value is $10, the import tax would now be $1 if it followed the 10% tariff. 

These changes will impact various individuals along the chain, from those importing, companies receiving those goods, and the customer buying them.

This means companies that bring foreign goods into the US have to pay the tax to the government.

Since the announcements and before the pause was placed on the 10% tariffs for most countries, many companies have imported a high amount of goods in the US to avoid these additional charges.

Although the 90-day pause may provide some relief, it is predicted that there will still be stockpiling taking place over this period to prevent the financial implications so much in future. 

How Have Tariff Change Announcements Impacted Distribution Centers?

Distribution centers are the hub for receiving, storing, and shipping goods out to elsewhere, whether that be to another business or end customer.

Compared to other warehouses, they are specialized in supporting various stages of the supply chain, making them enticing for companies overseas to store and ship their goods from. 

This helps streamline the order processing for those businesses, instead of shipping them directly from their original countries to an end customer, retailer, or wholesaler.

Due to distribution centers housing many overseas goods, these announcements have led to many being faced with increased stock for them to store and created a rise in security risks for them.

What Security Risks Are Distribution Centers Faced With Following Tariff Changes?

The increased stock has increased the security risks presented to distribution centers alongside this for various reasons, and in many cases has grown the pre-existing security risks to distribution centers further.

We explore four of the main security risks distribution centers are currently faced with and are predicted to encounter in the future following tariff changes:

Increased Risk of Theft

The tariffs have been a hot topic for those both in and outside of the US, and due to this, most are aware of the stockpiling or increased stock distribution centers are dealing with currently. 

Specifically thieves, who have tuned into this because of the financial benefits that can be gained from targeting them for goods.

Distribution centers are attractive already due to the high stock they tend to hold of company goods or various company goods, so this has only increased following the influx of stock appearing at many of them. 

This has led to an increased risk of theft, as the reward for criminals is much greater now.

Also for some distribution centers, they may not have faced this level of stock before and due to this, not be aware of the best method of storing and/or managing the security of this to prevent theft. 

In these cases, this only grows the risks presented to them as thieves will often be knowledgeable in scoping out distribution centers that prevent lower risks to them.

Growth in Attacks From Organized Crime Gangs

Linked to the increased risk of theft, organized crime gangs will be aware of the increased stock in distribution centers and likely use their expertise to implement targeted attacks on them.

Organized crime gangs involve various trained individuals that understand the best methods for approaching crime including theft. 

These targeted attacks will often be more advanced compared to others as individuals will be knowledgeable in scoping out distribution centers, addressing any concerns, and selecting the best victim for the attack.

The increased levels of stock will likely leave distribution centers overwhelmed on storage and some may not prioritize their security during this.

This leaves them vulnerable to trained organized crime groups targeting them, providing them with a low risk, high reward situation.

Safety Risks From Overwhelmed Distribution Centers

External risks are not the only concern for distribution centers, increased stock will mean they are storing more goods and this could alter the layout or stock management of them.

These changes could lead to increased safety risks as those working within the distribution center may be unaware of the new dangers presented from the stock increases they have been faced with.

Also, for some distribution centers, there is the potential that they could become overwhelmed by the influx of goods and in turn, create safety risks due to poor storage or overstocking of goods.

The increased risk of safety hazards poses threats to your employees, especially with physical injuries. 

As an employer, you have a duty of care and responsibilities to those under your company. Injuries and accidents can lead to employee absences, financial and legal repercussions, damaged reputation, and increased insurance premiums.

All this can have short and long-term financial impact on your distribution center which can be hard to recover from.

A Rise in Violence and Aggressive Crimes

With increased risks of theft and economic uncertainty, there’s a greater chance of violence and aggressive crimes as a consequence of this.

The enticing prize of financial gain means criminals will go to great lengths in order to steal stock from your distribution center, especially if they are aware there is more available than normal. 

This could increase the use of aggressive tactics such as physical violence, verbal aggression, arson, and kidnapping, all in pursuit of leaving with stock to resell. 

Also, due to economic uncertainty, individuals can be placed into financial hardship or tensions can arise which during this time could lead to targeted strikes on businesses including distribution centers.

In severe situations this can lead to aggressive behaviour spilling onto your site, placing your business and employees at risk. 

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How do Distribution Centers Manage The Security Risks Created by Tariff Changes?

Due to these increased risks, distribution centers have grown as a target for criminals and this means yours could now be a focus now more than ever for them.

So, how can you prevent your distribution center and employees from falling victim to these security risks?

Complete a Risk Assessment and Identify Any Weak Spots

Risk assessments can be completed for both health and safety, as well as for the building’s security. 

By completing these you can establish the risks presented to the distribution center, factoring in any new threats, and identifying weak spots. This could be establishing access points criminals may target, any high-risk areas for injuries, or blind spots where individuals could hide.

You can carry the assessments out yourself or employ a trained professional to do so, depending on your resources, however, you should be completing them on an annual basis or sooner in cases where risks have grown.

Therefore, if your distribution center has stockpiled goods or increased stock currently, this should be a priority to help identify those weak areas you can improve on.

It’s also important to factor in the perimeter of your property including your parking lot when doing this, not just the internal areas as there are many risks that exist externally which still need to be prioritized.

Discover 5 Steps to Better Parking Lot Security

Boost Your Security with Increased Surveillance

This change in circumstances for many distribution centers means that any existing surveillance system in place may not be able to manage the newly presented security risks.

Distribution centers are likely to be more attractive than before to criminals, so you need to make sure that your surveillance system can manage this and is equipped for the increased risks.

This starts by ensuring you have both internal and external security in place. 

Internally, you should ensure all areas are monitored, even blind spots day-to-night. This means that employee safety can be monitored and if any authorized access takes place, there is a system that can record this for evidence. 

However, you should also consider fitting a system that monitors the external perimeter of your property including your parking lot if you have one attached to your building.

At LotGuard, we offer a high-quality parking lot security solution that can be installed in under 20-minutes that helps to deter, detect, and deal with security risks presented.

Our Surveillance Trailers provide expanded coverage for large spaces such as distribution centers, as well as complete power autonomy and cellular connectivity which means even those in the most remote location can receive high-quality security. 

During times like now with the tariff changes, boosting your security is key and by offering rental options for all our products, you can have security when and where you need it most.

Implement Security Guards to Protect Employees

Due to the risk of aggressive and violent behavior, during times like now implementing security guards to escort employees to and from their vehicles can help protect them from this and provide a sense of security to them.

If an employee is physically injured or off sick in relation to any targeted attacks, your distribution center’s operations will likely be impacted and there could be financial repercussions for you as a business.

Security guards can also be used overnight to protect the actual site when no employees may be present. 

Criminals often utilize the nighttime to their advantage, so by boosting your security through the night, you can help prevent crime such as theft and vandalism.

Secure the External Perimeter of Your Site

Many will be aware of the importance of internal security, monitoring stock, employees, and any activity that takes place. However, have you ever thought about the external dangers that present themselves to your distribution center? 

Most crimes begin on the external areas of the property and not protecting this is providing criminals with easy access to your building.

Ask yourself this question; would you rather be proactive and prevent crime before they enter your site or work retrospectively to solve it? The answer is simple and the best way to do this is to secure the external perimeter of your property.

A simple solution for this is to utilize your parking lot, which most distribution centers will be fitted with. 

At LotGuard, we realised that many businesses including distribution centers were lacking in their external security, even though they had parking lots that could be used to resolve this.

That’s where our parking lot security solutions were created, using only one parking space and quick-to-install, the LotGuard PRO Surveillance Trailer can both monitor, deter, and prevent crime before it even reaches your building. 

Backed by remote monitoring capabilities and fitted with up to 4 IR PTZ advanced cameras that provide a near 360 degree view and AI video analytics which help to minimize false alarms and tackle the majority of crime at its earliest possible stage.

Communicate With Employees on Any Policies or Important Information

Due to the increased stock and stockpiling that some distribution centers are faced with, employees’ safety needs to remain at the forefront, especially when this is likely to be at higher risk than before. 

To ensure that everyone remains safe, you should reiterate any policies and any important information to employees regarding health and safety. This will help with reminding them on how to maintain their safety, as well as others. 

You should also look to review your policies at this time and any updates, you need to communicate these to employees and ensure you have clear documentation on this for them to revisit.

As an employer you have a responsibility to care for your employees and part of this is ensuring they are aware of how to manage safety in the workplace. 

Put Your Perimeter Security in LotGuard’s Trusted Hands

The tariff changes have placed many industries into uncertainty and the last thing you want to be concerned about is your distribution center’s security, so why not leave that in our trusted hands?

With over 20-years worth of expertise in the world of parking lot solutions, we understand the various challenges that distribution centers are faced with and have created a product range that helps to mitigate these risks.

The LotGuard PRO Surveillance Trailer works as a criminal deterrent and live monitoring and recording security system that responds proactively to threats at their early stages. 

Speak to one of our experts today to find out how we can support you in boosting your parking lot’s security.

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