Tariffs have put global manufacturers in a tough position. For many epoxy and specialty chemical producers, rising trade costs and uncertainty around U.S. market access are prompting difficult strategic decisions.
Some have considered standing up operations in the U.S. as a way to sidestep tariff exposure, but the reality of doing so is far more complex than it first appears. What looks like a long-term fix can quickly become a burden once you factor in the hidden costs of establishing stateside production.
In many cases, private label manufacturing offers a faster, smarter way to stay competitive—without the massive capital investment or regulatory red tape.
Here, we’re revealing five hidden costs global manufacturers face when trying to build U.S. operations and how a private label partnership with Copps Industries can help you avoid them.
Hidden Cost #1: Regulatory & Permitting Roadblocks
Before you can produce a single product, you’ll need to navigate a maze of EPA, DOT, OSHA, and state-level chemical regulations. Each agency imposes its own compliance requirements, safety standards, and environmental permitting steps.
These aren’t quick approvals. Obtaining permits can take months or even years, and it often requires specialized consultants, third-party audits, and legal support.
And that’s just the beginning. Maintaining compliance requires continuous documentation, inspections, and reporting.
If your goal is to move fast and maintain momentum, the regulatory burden can derail your plans before they begin.
Hidden Cost #2: Supply Chain Gaps
Building in the U.S. doesn’t guarantee that every raw material or additive you rely on will be available domestically.
In many cases, specialty chemical formulations require imported components or proprietary materials that simply aren’t produced in the U.S. This means reformulating products, qualifying new suppliers, and validating performance. It’s a process that can add months to your timeline and introduce new risks to product consistency.
Even once you identify potential suppliers, establishing relationships, negotiating contracts, and verifying quality systems takes significant time and attention.
In contrast, Copps’ established U.S.-based supply chain and raw material network allow global manufacturers to hit the ground running without delays or reformulation risks.
Hidden Cost #3: Infrastructure & Capital Expenditure
Standing up new production facilities requires more than just a building. Equipment, utilities, waste management, insurance, and liability coverage all come with high up-front and ongoing costs (not to mention hiring, which we’ll address next).
Even once it’s established, maintaining that infrastructure—and ensuring it remains fully utilized—is another challenge. Market fluctuations, demand shifts, or regulatory changes can leave you with underused, high-cost assets that drain capital instead of generating it.
Partnering with a private label manufacturer like Copps eliminates the need for costly infrastructure and lets you focus on product innovation, brand expansion, and customer relationships rather than real estate and utilities.
Hidden Cost #4: Workforce & Training
The U.S. manufacturing labor market is tight, and recruiting skilled chemical technicians, operators, and engineers isn’t easy or inexpensive.
Once you hire the staff you need, you’ll also be faced with ongoing costs for training, certifications, and safety compliance. Specialized epoxy production requires not only technical knowledge but also hands-on expertise in safe handling, mixing, and curing processes.
Copps’ existing team brings decades of experience across formulation, processing, and QA/QC. Leveraging our trained and certified people can help you avoid the costs and complexity associated with building expertise from scratch.
Hidden Cost #5: Lost Time to Market
Every month spent navigating permits, sourcing materials, or hiring staff is a month your competitors can capture more market share.
Leadership teams often underestimate how much time they’ll need to get new operations up and running, and how much focus it will demand. Executives who should be driving growth and strategy may instead find themselves managing site construction, contractor delays, and supply chain logistics.
Private label manufacturing with Copps allows you to accelerate your market entry from years to months, preserving market share, maintaining continuity with customers, and eliminating operational distractions.
How to Avoid the Complexities
The good news is that you don’t have to take on these hurdles alone. A private label partnership with Copps Industries can help you:
- Skip permitting and infrastructure headaches
- Leverage an experienced team that understands U.S. regulatory compliance
- Tap into established R&D, supply chain, and production capabilities
- Accelerate your market entry while reducing cost and risk
Our private label process offers a clear, collaborative roadmap from concept to commercialization. For a closer look at how private label partnerships mitigate tariff exposure and operational complexity, see our companion article: Why Private Label is the Smart Response to Tariffs.
Copps Industries: Private Label Partnerships for U.S. Market Access
Building in the U.S. isn’t just expensive; it’s complex, time-consuming, and full of hidden hurdles. From compliance and supply chain challenges to capital investment and lost time to market, the real cost often exceeds the initial tariff burden.
Private label manufacturing with Copps Industries offers a faster, lower-risk path to U.S. market access. You’ll gain the benefit of a trusted partner with decades of epoxy formulation, production, and regulatory expertise—without the burden of starting from scratch.
If tariffs or hidden costs are weighing on your business, we can help. Explore our private label services or contact us to learn how we help global manufacturers stay competitive in uncertain times.