4 things a week: Milan design week (and Trump tariffs)
1. Tariffs
It’s insane. Tariffs on Chinese imports now stand at 245% (as of 16th April 10am UK, they may have changed already), this means that companies putting in an order of goods worth $100,000 are now faced with an additional $245,000 charge just to get the products into the country. And whilst there are some potentially ambiguous exemptions for some tech products, this affects pretty much anything produced in China, from raw materials and machinery to medical equipment and kids products. Companies we have worked with are, almost overnight, facing having to shut up shop. The very idea that small and medium sized companies - which makes up 99.9% of U.S. businesses - can move production to U.S. factories with zero warning is beyond naive.
Say you make a reusable coffee cup using silicone and recycled plastic. The manufacturing process requires injection moulding, over moulding, compression moulding and ultrasonic welding. And this has to happen in a certified food-safe environment. The number of factories that could do this in the U.S. verses China is a tiny fraction.
But say you did find a factory, then you will likely have to make new moulds, which, depending on the number of SKUs you have, could be $150,000+ investment and 6-12 months lead time. Oh, but wait, most factories in the U.S. still outsource their tool-making to China because, well, they are just better and quicker at it. So you’d have to pay 245% import tariffs on the tool.
Then you have to import the raw material. And be grateful that it’s a silicone coffee cup and not a small electronics product because it’s hugely likely that if it was, you would have to import the electronic components too. Even so, once you’ve invested over a quarter million dollars in tooling and another $200,000+ on the initial order, and waited 12 months with no cash flow because you have nothing to sell as the stock you did produce is still sitting in a warehouse in China… well you didn't, because you didn't have the much cash in the bank and you long shut up shop and let your team go.
But isn’t this just short term pain for long term gain? Isn't it eventually going to bring my factories into the U.S. and then more jobs?
This article in the NYT sums it up really well. Setting up new factories in the U.S. would take at least 4 years to recoup the costs. And that’s without considering the tariffs on imports of equipment and machinery needed or the hiring of workers in an era of mass deportation of immigrants or the lack of American expertise in manufacturing. In 4 years a new president would be elected and then who knows what would happen with tariffs. So what incentive is there for a company to set up new manufacturing plants?
Maybe we could start a manufacturing revolution in the UK instead...?
2. Milan design week
I took the whole Morrama | Certified B Corp team to Milan design week last week. It was an amazing experience and a great decision that we will no doubt repeat. The conversations, the ideas, the bonding, the delicious food; it left everyone feeling energised and excited coming back into the office this week. On Wednesday we ran our Out of Office (OOO) Run Club. Bringing a diverse group of people to the Parco Sempione to move together through Milan, sparking conversation and feel-good endorphins over coffee and croissants. The sun was shining, the vibe was amazing. Have to hand it to the team - it was a great idea.
But what about the actual Fuorisalone? Honestly; super underwhelmed. Where was the storytelling? How many times do I have to walk into a room and look at a collection of furniture that gives me no context, no basis, no explanation? Surely we are long past making design for the sake of aesthetics with nothing else to say about it? Surely we need to be giving more reason to our work than ‘doesn’t this mirrored wardrobe look great in this abandoned 19th-century villa’? Even the ASUS exhibit in collaboration with Dezeen was clutching at straws. A confusing combination of kinetic installation by Studio INI (that you had to give up your contact details to actually experience) and a loose attempt to promote ASUS’s trademarked Ceraluminum material as something sustainable. I’ll give it to Nassia Inglessis of studio INI; the sculpture was pretty cool. Just a shame that it wasn’t the whole exhibit.
There were of course a few exceptions; my favourite exhibit was called the Last Supper; part of The Dutch in Milano at Masterly. A collaboration between 21 designers using innovative bio-materials to feed into a beautiful table setting. As well as two exhibitions based on experimental iterations of the same product - the Loewe Teapots and the 24 Hours exhibit; a collection of 24 takes on a clock. These types of exhibits provided a platform for play that I love. Your idea of an object is pushed and pulled. You find something you love and something you hate and have the opportunity to challenge yourself as to why. For me that is the point of Milan design week; to have my ideas challenged. But maybe that’s not its purpose any more? Judging by the design week tourists queuing for hours like they are waiting for the latest ride at Universal, only to hastily whip through the exhibit viewing the whole thing through their phone camera and onto the next queue… maybe I’m doing it wrong.
But then it’s not really about the chairs (or clocks) anyway. It’s about the people. The conversations that carry on into the bar next door over an Aperol. The new connections. I’d rather sit for 3 hours chewing over interesting design conversation than ticking off another 10 destinations. So that’s what I did. And to all the interesting people I met, from students at the Politecnico to heads of global brands; I can’t want to see you next year!
3. Morrama
Some more photos from our OOO Run Club in Milan last week. Thank you to everyone who made it! We will be doing it again in London soon so stay tuned...
4. Inspiration
I’ve been doing a lot of thinking about regenerative design lately, firstly what does it even mean and secondly is it even possible. More to come on this subject, but the LinkedIn post I made earlier in the week has some really interesting comments and links if you are interested in the topic.
