April 2025

By Kerry Stackpole, FASAE, CAE, PMI CEO/Executive Director

As a manufacturing executive, you are likely grappling with a shocking array of emerging trade policies that pose a more extreme threat to your supply chains than previously expected. There’s also the unprecedented trifecta of challenges: inflation, tariffs and labor shortages. Each of these factors can severely impact production efficiency, profitability and long-term growth. To remain competitive, you must employ adaptive and resilient strategies. Great, but what options are at hand to navigate these turbulent times?

One of the most effective is supply chain diversification. Your team of supply chain professionals are the new heroes of industry. Having only one source, or relying heavily on a single supplier or single region, increases disruption and vulnerability big time. Regionalization and nearshoring strategies can reduce transportation costs, mitigate geopolitical risks, and improve lead times. In addition, establishing relationships with multiple suppliers fosters competition and redundancy, ensuring operations continue even if one link in the chain fails. Vertical integration, where you acquire or invest in upstream suppliers, can also enhance your supply chain control and reduce costs.

If we learned anything from the COVID-19 pandemic, optimizing inventory management became crucial toward managing uncertainty. The movement from just-in-time to just-in-case became a mantra to those seeking a strategic buffer stock of critical materials. This proactive stance still matters and will provide a cushion against sudden supply chain shocks. Collaborating closely with suppliers through visibility tools ensures transparency and quicker decision-making.

To counter rising costs, a risk analysis that explores cost absorption versus cost-pass-through deserves your consideration. Transparent communication with customers regarding business term adjustments remains essential to maintaining trust. Renegotiating supplier contracts or seeking bulk purchasing agreements may further reduce your per-unit costs. You may also discover that lower-cost material substitutes will help sustain your margins.

We all understand tariffs impose additional financial burdens, particularly if your company is reliant on imported materials. Leveraging free trade agreements or seeking alternative trade routes can reduce some tariff exposure. Reclassifying goods to ensure correct tariff categorization may also help lower duties. During last month’s Plumbing Manufacturers International webinar, “Trade Policy Under the Second Trump Administration,” (tinyurl.com/27mtzxjn) attorney Liz Lowe encouraged PMI members to confirm proper classification of their products and/or consider making changes to a product to move into a different and presumably lower tariff classification if possible.

To strengthen your teams, invest in technologies such as IoT sensors, AI-powered systems, and robotics to help transform production processes and potentially enhance productivity. Cloud-based platforms provide real-time supply chain visibility, enabling proactive issue resolution. Some firms are crafting digital twins to simulate supply chain operations, resulting in predictive insights for managing disruptions more effectively.

Leadership agility is critical to navigating uncertainty. Engaging in scenario planning exercises to anticipate potential disruptions and formulate contingency plans for your business can help. Assessing risk routinely ensures your firm is prepared for rapid, unexpected shifts, as well as for surprise outcomes across the enterprise.

If leadership agility is key to navigating uncertainty, then financial resilience is key to withstanding economic volatility. Every business leader understands cash is king. It’s likely one reason noted investor Warren Buffett is sitting on $334 billion in these turbulent times. Your firm can mitigate currency fluctuation risks, maintain a healthy capital structure, leverage low-interest financing, or refinance existing debt to gather additional liquidity. All are important steps in the finance playbook, but improving on receivables collection and negotiating extended payment terms with suppliers does even more to enhance cash flow and operational stability.

Fostering strong industry partnerships across the supply chain enables knowledge sharing and collaborative problem-solving. Open dialogue with suppliers, logistics providers, and industry peers at PMI can provide insights and enhance collective resilience. By diversifying supply chains, optimizing inventory management, mitigating inflationary pressures, and navigating tariffs strategically, you can build resilient operations.

Lastly, in these wildly different times, bring laser-like focus to your important goals—the goals that will make the most significant impact on your business. These are the times to overcome the “whirlwind” of daily tasks and maintain tight focus on your most important strategic goals, so you and your team can thrive despite the challenges you face today and those you’ll face tomorrow.

By Judy Wohlt, PMI Communications Team, Valek and Co.

Plumbing Manufacturers International is collaborating with other organizations to urge the California Energy Commission (CEC) to reconsider further lowering maximum toilet flush volumes in California. Various state organizations recently submitted comments aligning with PMI’s position on CEC Docket 22-AAER-05, Appliance Efficiency Regulations for Water Closets.

For several years, PMI has recommended that the CEC focus on replacing legacy plumbing products with Title 20-compliant products to achieve significant and immediate water savings. However, the CEC staff continues to voice support for lower flush volumes to achieve the state’s water-saving goals, said PMI Technical Director Kyle Thompson.

The CEC staff report and recommendations propose updating the state’s water-efficiency standard from 1.28 gallons per flush (gpf) to 1.1 gpf for single-flush water closets and updating the effective flush volume of 1.28 gpf to a full-flush volume of 1.28 gpf and a reduced-flush volume of 0.8 gpf for dual-flush water closets, effective Dec. 1, 2026.

Other groups align with PMI’s viewpoint
PMI’s ongoing advocacy to discourage lowering flush rates in the state involves working with other organizations to express their similar concerns on the issue.

Thompson and PMI California Government Affairs Consultant Jerry Desmond met with several organizations to encourage them to submit their comments during the most recent comment period. Those organizations include the California Association of Sanitation Agencies, California Building Industry Association (CBIA), Building Owners & Managers Association of California (BOMA), California Building Standards Commission (CBSC), and California Department of Housing and Community Development (HCD).

In their formal comments, a coalition of the CBIA, California Apartment Association, California Business Properties Association, and BOMA said they “echo” PMI’s comments. “PMI has been a longstanding and productive source of data and advice on issues related to plumbing systems and plumbing fixtures for decades. PMI has been instrumental in providing much-needed field data used by the HCD in developing water conservation measures contained in the California Green Building Standards (Title 24, Part 11) over the past 17 years,” the coalition stated.

“We’re pleased that they have taken the time to confirm their concerns and then to communicate those formally into the docket,” Desmond said. He noted the significance of the CBSC and HCD submitting formal comments in the docket, because state agencies typically communicate behind the scenes.

The CEC is expected to announce its formal proposal on the docket this spring, so this will likely be a key topic at the California Legislative Forum and Fly-In in May, he said.

May 12-13 legislative fly-in to highlight ‘urgency bill’ for building standards and more
PMI members can come together to represent their companies’ and the industry’s interests on the key issues of water efficiency, water closet flow rates, building standards, and more at the PMI California Legislative Forum and Fly-in, May 12-13. Attendees will join PMI staff to meet with lawmakers in Sacramento to discuss priorities and challenges for PMI.

The forum will cover AB 306, a bill that would pause additional changes to state building standards affecting residential construction for six years—excluding emergency changes necessary for protecting health and safety and home hardening. Home hardening includes vegetation management compliance and building materials used to resist flames or embers produced by a wildland fire, according to the CAL FIRE website.

This “urgency bill,” which would pass immediately and take effect in July, would also prohibit local governments from making new modifications to residential building standards for six years, with limited exceptions, Desmond said. The objective of AB 306 to remove barriers to housing production would be furthered by pausing Title 20 regulation changes as well, he added.

PMI staff members are collaborating with Desmond to finalize the forum’s agenda and preparatory materials for attendees. PMI CEO/Executive Director Kerry Stackpole encourages members to sign up for this important and rewarding experience.

“We’ll teach you the ropes to know and the ropes to skip. Visiting elected representatives gives you the personal opportunity to shape the narrative and make clear the risks facing the manufacturing community and rewards of American prosperity that come from supporting the implementation of sensible, pro-growth, science-based policies and regulations,” Stackpole said.

PMI members can register for the California fly-in at tinyurl.com/mr6rm9pz. An April 4 webinar will help members to prepare for the California fly-in and the one in Washington, D.C., on Sept. 9-10. Register at tinyurl.com/y8h5r296.

By Judy Wohlt, PMI Communications Team, Valek and Co.

Since its inception six years ago, the Plumbing Manufacturers International Inspiring Leaders Program has drawn inspiration from art, sports, history, and other fields to help PMI members become stronger leaders, innovators and collaborators. Delivered in a small-group setting ideal for connecting with colleagues, the program continues to evolve as members weigh in on topics important to developing their careers and leadership skills.

The program originated as the Aspiring Leaders Program and was geared toward those newer to the plumbing manufacturing workforce, said PMI Director of Programs and Administration Jodi Stuhrberg. More experienced PMI members began showing interest, which prompted the name change to Inspiring Leaders Program in 2023.

“Member feedback has been crucial to developing this one-of-a-kind learning experience,” she said. In the past, PMI hosted two workshops each year, culminating with the in-person program on the first day of the PMI Manufacturing Success Conference. PMI expanded the program this year to deliver three workshops: strategic communication to sustain employee engagement and retention; profit and loss statement proficiency; and crafting and delivering effective, memorable communication.

PMI has received comments from participants calling the program “inviting” with “meaningful content,” Stuhrberg reported. “Attendees have shared how they take the tools and tips learned at the workshops and apply them in practical ways on the job.”

Timo Kopka, Roca Group head of product certification and standards, Laufen Bathrooms, said he has enjoyed the program for several years and collects “small bits of information from this program and other places to build up to bigger improvements.”

Unique locations that stir the imagination
Throughout the years, participants have been treated to unique in-person learning experiences in locations that stir their imaginations and spark innovation in their work. “We look for interesting museums, galleries, and historic locations in our conference city that will inspire participants,” Stuhrberg said.

Attendees have explored the four-acre flight deck of the USS Midway Museum in San Diego; been surrounded by beautiful works of art at the Dali Museum in St. Petersburg; toured Louisville’s Muhammad Ali Center where they learned a visualization technique Ali used to become “The Greatest” boxer of all time; were inspired by aircraft and spacecraft innovations at Seattle’s Museum of Flight; and explored the peaceful and hopeful legacy of the nation’s 39th president at the Carter Center in Atlanta.

Jeff Baldwin, director of engineering with T&S Brass & Bronze Works, has participated in the program several times and describes his first experience in 2019 at the Dali Museum as “eye-opening.” At the time, he was focused on adjusting his mindset to be more proactive to new and innovative product ideas. “This program helped me to leave my comfort zone from a ‘black and white’ engineer, and it helped give me some tools to utilize—listen more and talk less,” he said.

The online workshops leading up to the conference are meant to be easily accessible; PMI members can take a quick break during the work week to learn important new skills, Stuhrberg explained.

“It’s helpful to have these brief trainings to learn something new, and the topics are a good connection to my work,” Kopka said. He also found the program on “Strategic Doing – 10 Skills for Agile Leadership” at the PMI24 Manufacturing Success Conference useful. “There were some points where I was thinking, ‘Oh yes, this is something I want to use directly—maybe next week,’” he added.

Enjoying the camaraderie
Participants have said they appreciate the small group environment, which provides an ideal setting for colleagues to connect.

“Attendees spend eight hours together during the in-person program opening up about career challenges. They practice what they’re learning using a practical, hands-on approach. Ultimately, they go through something together and become bonded,” Stuhrberg said.

The program offers a great networking opportunity, especially the in-person events on the first day of the conference, Kopka stated. “You get to know some new people that you have never met or spoken with before and then you get several days during the conference to build on these new relationships,” he added.

PMI members can register for the May 15 Inspiring Leaders workshop on “Mastering Profitability for the Non-Financial Manager – A Guide to Profit and Loss Statement Proficiency” at tinyurl.com/bdya3enr.

By Judy Wohlt, PMI Communications Team, Valek and Co.

The PMI team connected with members and explored their latest plumbing product innovations, many of which won awards and recognition, at the 2025 Kitchen and Bath Industry Show (KBIS).

PMI members were recognized for their sustainability efforts, stylish fixtures, outstanding booth designs, and more. Kohler won four Best of KBIS product awards—“Wellness Trailblazer” Gold Award for Kohler x Remedy Place Ice Bath; “Sustainable Standout” Gold Award for Landshapes Tile by Kohler WasteLAB x Daniel Arsham; “Style Statement: Kitchen” Silver Award for the Billet Kitchen Faucet Collection; and “Style Statement: Bath” Silver Award for the Guise Collection by Kallista, a Kohler brand. Also, for the third year in a row, Kohler scored Best of Show Booth Design.

BLANCO, Elkay and House of Rohl were Best of KBIS finalists in the “Style Statement: Kitchen” category; Delta Faucet Company was a finalist in the “Most Functional Find” category; and Elkay and Laufen Bathrooms were finalists in the “Wellness Trailblazer” category. Moen was among 11 brands competing in KBIS Design Bites for the title of “Brand with the Biggest Bite.”

Mingling with members on the show floor
Including Matthew Windrum, the new director of state government affairs, policy and advocacy, the PMI team logged thousands of steps touring the 500,000-square-foot exhibit space over the three-day event in Las Vegas. Fourteen PMI members were among the 700 exhibitors attracting the attention of “an engaged trade audience looking for the latest products to specify as well as to keep up with trends in the field,” according to the KBIS website.

“We decided to throw Matthew into the deep end of the pool by having him join us here,” said PMI CEO/Executive Director Kerry Stackpole. “We thought he’d find this experience useful—especially the opportunity to meet with the members.”

Stackpole noted many trend-setting products on the show floor that PMI members produce. These products include a reverse osmosis system that improves the quality and taste of drinking water; water shut-off valves that save homeowners and businesses from water leak damage; and wellness products, including an ice bath that reduces muscle soreness.

“We were thrilled to visit all of our members and to see their innovations in person,” said PMI Director of Programs and Administration Jodi Stuhrberg. “There’s nothing like speaking with the designers, engineers and marketing folks who are passionate about what they’re creating and doing.”

Crystal Vision Awards honor building industry’s donations
Along with PMI members Gerber Plumbing Fixtures, Kohler, LIXIL and Reliance Worldwide Corporation, PMI sponsored the 24th annual Crystal Vision Awards, which recognizes building industry manufacturers, retailers, distributors and others that make significant contributions to the Storehouse of World Vision. The storehouse collects and distributes excess inventory to families in need.

PMI and many of its members have long supported the storehouse, generously donating products, time and funds to aid vulnerable communities across the globe. This year’s event featured a video showing how storehouse building materials, including bathroom and kitchen faucets, were used to help rebuild Asheville, North Carolina, after Hurricane Helene.

The Wholesaler Magazine, to which PMI regularly contributes articles, won the Partnership Award for its commitment to advancing the plumbing, heating, cooling, and PVF industries and giving back to the communities it serves.

Carmen Fiordirosa, president of Gerber Plumbing Fixtures, participated in a panel discussion about “The Underbuilding of Affordable Housing and Its Impact on the Building Material Industry.”

By Judy Wohlt, PMI Communications Team, Valek and Co.

Contraband and counterfeit plumbing products, tariffs, tax reform, and water efficiency sparked lively discussions during the Plumbing Manufacturers International Power Break and Briefing at this year’s KBIS. A group of PMI members attended the briefing to discuss opportunities and challenges plumbing manufacturers face in 2025.

PMI CEO/Executive Director Kerry Stackpole discussed the economic uncertainty surrounding tariffs, trade and appliance efficiency standards and how “innovation and entrepreneurship bloom in uncertainty.” He also noted PMI’s participation in many legislative and regulatory forums that “give us opportunities to highlight the innovative work each of you do every day and the strong contributions your companies make to America’s economy.” Those contributions encompass the creation of more than half a million jobs, $35 billion dollars in wages, $15 billion in tax revenue, and more than $116 billion in economic impact.

To expand PMI’s engagement with policymakers, the association recently hired Matthew Windrum as director of state government affairs, policy and advocacy, a newly created position. PMI’s “over-the-horizon” tracking focuses on new legislation and regulations on three key issues: contraband and counterfeit products, tariffs, and tax reform, Stackpole said.

Federal tariffs remain a top concern for members
PMI members shared with Stackpole the likely impact new tariffs will have on their businesses and the additional costs they will incur.

For example, one PMI member that uses components from China for its plumbing products reported that the latest additional 10% tariffs on Chinese imports will add $45 million to the company’s annual costs. “We need a common-sense policy to allow your companies to invest and time to adjust as policies evolve,” Stackpole said, noting how tariff exemptions and offsets are needed.

Ensuring that the tax code supports innovation could offset the negative impact of tariffs to some extent. “Smart tax reforms are rocket fuel for plumbing product manufacturers,” Stackpole stated. For example, PMI supports a permanent tax deduction for capital equipment. From 2017 through 2022, a 100% deduction for buying equipment and machinery in the tax year purchased was in place. Congress enacted the deduction to stimulate investments and ensure the United States can attract capital in a competitive global marketplace. However, full expensing began to phase out at the beginning of 2023 and will be eliminated by 2027.

Stephanie Salmon, PMI’s federal government affairs consultant, fielded questions and shared updates on federal tariffs to address members’ concerns.

PMI has been working with the International Trade Administration to share how tariffs could negatively impact plumbing manufacturers, she said. The association has urged the administration to at least exclude building products and materials including plumbing products from the tariffs, which will harm housing affordability.

The U.S. Trade Representative conducted a Section 301 investigation into China’s efforts to dominate the maritime, logistics and shipbuilding sectors. The investigation found China’s acts, policies and practices to be “unreasonable and to burden or restrict U.S. commerce,” reported a USTR news release. As a result, the USTR proposed a set of remedies that include “port service fees” against Chinese-built ships every time they enter a U.S. port and various other fees, Salmon explained.

In response to the USTR’s request for public comments on the remedies, PMI signed a coalition letter acknowledging that there is a need to revitalize U.S. shipbuilding, but that the proposed remedies are not the right approach and will hinder the competitiveness of plumbing manufacturers and other businesses, Salmon reported. Specifically, USTR’s proposed fees will increase container shipping costs by at least 25%, adding about $30 billion in annual costs to U.S. businesses and farmers, the letter stated. The coalition represents a wide range of businesses and groups, including importers, exporters, retailers, manufacturers, energy providers, wholesalers, farmers, and transportation and logistics providers.

PMI is also collaborating with homebuilders to underscore the concerns about tariffs on plumbing fixtures and fittings and the negative financial impact they will have on builders and homebuyers, she said.

Jerry Desmond, PMI’s California government affairs consultant, discussed California’s ambitious corporate climate responsibility laws that are being challenged in court and how PMI continues to encourage the California Energy Commission to reconsider further lowering maximum toilet flush volumes in the state.

He provided an update on how federal-level actions have affected the state’s political climate and reviewed new legislation proposing a six-year pause on regulatory updates to state and local building standards. This pause would remove barriers to new housing construction, he said.

By Judy Wohlt, PMI Communications Team, Valek and Co.

PMI is backing bipartisan federal legislation that gives a tax break to homeowners who install water-efficient plumbing products using rebates.

In March, Sens. John Curtis (R-Utah), Alex Padilla (D-California), and John Hickenlooper (D-Colorado) introduced the Water Conservation Rebate Tax Parity Act, legislation that would amend current tax law to exempt homeowners from paying income tax on rebates received from water utilities for water conservation and runoff management improvements. These rebates encourage the adoption of water-efficient technologies that reduce water demand and enhance long-term water security.

The bill encourages homeowners to invest in water-saving and flood-prevention improvements by ensuring they are not penalized with unexpected tax burdens. Reps. Jared Huffman (D-California), Blake Moore (R-Utah), and Judy Chu (D-California) introduced companion legislation in the House of Representatives.

Increasingly, public utilities along with state and local governments are offering rebates and incentives to homeowners who invest in water conservation and stormwater management improvements, according to a congressional news release.

“Encouraging residents to conserve water—whether by installing graywater capture systems, purchasing high-efficiency appliances, or upgrading plumbing fixtures—yields significant benefits for public health, the environment, and local economies,” the release stated. “These rebates provide a net positive impact for both the public and utilities; yet, they are still classified as taxable income under current federal law. This tax treatment discourages participation in water conservation investments.”

Conserving water is a way of life for Californians who understand the importance of staying prepared for the next major drought, Padilla said in a news release. “Saving water means saving money on your water bills, which is why water utilities throughout the state offer rebates for more efficient water fixtures or drought-tolerant landscaping. We should incentivize homeowners to invest in technologies that reduce their water consumption, not penalize them with additional federal income taxes,” he added.

Building a coalition
PMI is meeting with congressional offices in support of the legislation and working with the Alliance for Water Efficiency and other industry groups to sign a coalition letter supporting the measure. The letter will be sent to the chairs of the House Ways and Means Committee and Senate Finance Committee in April, reported Stephanie Salmon, PMI’s government affairs consultant.

“Enacting these provisions offers an opportunity to reduce unnecessary tax burdens and paperwork for citizens and water utilities while promoting critical water-efficiency initiatives that communities and their residents voluntarily undertake,” the letter explains. “By aligning the tax treatment of water-efficiency rebates with that of energy-efficiency rebates, which are already excluded from income, this legislation will eliminate an unnecessary obstacle to achieving greater water conservation.”

Through its Rethink Water initiative, PMI has been advocating for rebates, legacy product replacement, and tax-free holidays to help save water. The initiative addresses the adverse effects of climate change and aging water infrastructure on water resources by building a coalition sharing a vision of sustainably managed water. To learn more about PMI’s Rethink Water initiative, visit safeplumbing.org/advocacy/rethink-water.

By Ray Valek, PMI Communications Team, Valek and Co.

Travis Pate of the Circular Action Alliance (CAA), a nonprofit producer responsibility organization (PRO), gave Plumbing Manufacturers International members an overview of 2025 extended producer responsibility (EPR) regulations for paper and packaging during a recent PMI webinar.

CAA is approved to be the single PRO in California, Colorado and Minnesota and was the only PRO to submit an Oregon program plan. CAA’s mission is to help manufacturers and other producers comply with EPR laws while working with governments, businesses and communities to reduce waste and increase recycling, he explained.

Five states (California, Colorado, Maine, Minnesota and Oregon) have enacted EPR laws and two more (Illinois and Maryland) are currently undergoing needs assessments, which is “usually the first step to informing a future EPR law,” Pate said. CAA provides a single point of compliance for producers to comply with state-specific regulatory requirements, for which Pate provided a summary. Producers are obliged to report in any state in which they market their products, he stated.

Pate explained that reporting deadlines occur before the program actually starts. “So if you believe you’re a potential producer in Colorado, there will be a reporting deadline coming up this summer,” he said. The reporting deadline is Aug. 31, 2025, and Oregon’s was March 31. These deadlines are earlier than the start date because the program fees are calculated according to the total amount of packaging provided into the state’s market and divided by the number of producers.

After PMI members register with the CAA at circularactionalliance.org/registration, they are kept abreast of EPR reporting deadlines and requirements. Full registration involves signing a producer participation agreement (PPA) and state addenda. These documents outline the rights and obligations of the producer and CAA. All producers sign the same agreement to avoid giving one or more producers preferential terms. PMI members should register each of their obligated, subsidiary companies individually, Pate said.

CAA provides reporting guidance that includes covered materials and producer definitions, material reporting categories and definitions, a reporting preparation workbook, how to report data into the CAA portal, and more. Pate explained how CAA supports producers moving through the stages of registration, reporting and payment, as well as how CAA’s fees are set, how confidentiality is assured, and the process for monitoring and enforcing compliance.

“We are a producer-led organization; we’re here to help producers. We’re not looking to penalize anybody. We always want to make sure that things are good as they possibly can be,” he emphasized.

CAA offers an array of events designed to help producers achieve compliance, including weekly portal training, biweekly reporting workshops, a quarterly update, and biweekly producer onboardings. Learn more at circularactionalliance.org/events.

PMI members can view the webinar at safeplumbing.org/members/webinars-videos under Technical/Regulatory.

This article is not intended as legal advice. Companies should seek legal counsel specific to their needs and situation.