In East Longmeadow, Massachusetts, Excel Dryer, a leading manufacturer of restroom hand dryers, has found an advantage in President Donald Trump’s tariffs. William Gagnon, the chief operating officer, explains that these import taxes have allowed Excel Dryer to build a domestic supply chain, giving them an edge over competitors who import their products.
Gagnon credits Trump’s tariffs with reshaping production location decisions, enabling Excel to construct an all-domestic supply chain. This insulates the company against uncertainties affecting much of U.S. manufacturing and provides a competitive advantage. With luck, the president’s reciprocal tariffs might eliminate trade barriers in countries like Brazil and Australia, allowing Excel to expand internationally.
Despite widespread criticism of Trump’s tariffs, Gagnon sees clear benefits. The tariffs make foreign goods more expensive, boosting domestic suppliers’ competitiveness and discouraging purchases of cheaper Chinese copies of Excel’s products. Excel Dryer, expecting $40 million in revenue this year, is one of the few manufacturers whose major suppliers are all American.
The company’s signature product, the ‘Xlerator,’ is faster than competing models and widely used in locations such as Grand Central Terminal in New York and Buffalo Wild Wings restaurants across the United States. Excel’s success in securing domestic sources for the Xlerator’s main parts reflects a broader corporate trend of reshoring production due to global disruptions.
One significant challenge was sourcing the motor that drives the Xlerator’s high-velocity airflow. Chinese motor makers had a cost advantage, but through partnerships with domestic suppliers like Scott Fetzer Electrical Group, Excel managed to close the price gap. This shift not only improved product quality but also strengthened relationships with suppliers.
While tariffs have brought more work home for local suppliers, challenges remain, including labor shortages and dependency on Chinese components for certain products. These issues highlight the complexities of fully reshoring production.
— new from The Washington Post