Display Technology

Tariffs squeezing margins: How digital signage shops are staying ahead

Tariffs may feel like a policy issue, but the impact is deeply personal for small businesses in the digital signage industry. The shops that will weather this season best aren’t the ones cutting the lowest prices, but offering the most certainty.

Photo: Adobe Stock

May 15, 2025 by Almie Borromeo — Manager, Account Management, Cirrus Systems, Inc.

If you've quoted a digital display project lately, you've likely felt the tension. The cost of components is rising, lead times are shifting, and tariffs, some climbing as high as 145%, have turned pricing into a moving target.

It's a tough landscape to navigate. And for many sign shops, it's forcing a reckoning: how do you protect margins when costs are no longer predictable?

The ripple effect of tariff increases

Digital signage has never been a simple sell. High upfront costs, complex installs, and evolving technology make every project a balancing act. But when pricing fluctuates between quote and delivery, the risk shifts heavily onto the shop.

One sign shop in the Southwest shared they lost a school district deal after being forced to re-quote due to a supplier price hike. The original quote had been approved, but between tariff changes and a supplier delay, the shop was left with a 12% cost increase and an awkward phone call. "We looked unreliable, even though it wasn't our fault," the owner said.

Stories like this are becoming more common. For many shops, they're not just frustrating, they're expensive.

Why it's hitting so hard

Most of the digital display market has long relied on overseas manufacturing, particularly in China. For years, that approach delivered competitive pricing. But it also introduced fragility. When a tariff policy changes, or a shipment gets delayed at port, the impact is immediate.

With tariffs now jumping dramatically, some vendors are quietly raising prices or shortening their quote validity windows. That means sign shops have to absorb the volatility or risk passing it on to their customers. Neither is ideal.

And yet, not all shops are feeling the squeeze in the same way.

A shift toward domestic stability

In conversations with shops across the country, a clear trend is emerging: those working with U.S.-based or U.S.-assembled suppliers are reporting more stable pricing and faster delivery, even as the broader market scrambles to adjust.

One shop in the Midwest shared they shifted to a partner with domestic manufacturing capabilities after losing two municipal jobs due to international delays. "We needed more control over the process," the general manager explained. "Once we made the switch, quoting became a lot less stressful. We didn't have to second-guess every number."

This kind of shift doesn't just improve logistics, it's reshaping how shops compete.

Lessons from the field: What's working

Here are a few takeaways from shops navigating the current landscape more successfully:

1. Price certainty builds confidence: Being able to quote a job and stand behind the price without worrying about tariffs, adds tremendous value. Shops that align with partners offering predictable pricing structures are closing faster and earning repeat business more easily.
2. Lead time transparency wins: When a shop can say, "We'll install in three weeks," and actually mean it, it changes the customer experience. U.S.-based assembly has helped some shops cut lead times down to days rather than months, giving them a competitive edge when timelines matter.
3. Support matters more than ever: When you're dealing with technical products like digital signage, you want a support team that knows your install window and answers when you call. Shops that work with responsive, U.S.-based support teams report faster resolutions and fewer project stalls. In an environment where delays cost money, that kind of reliability matters.
4. Energy efficiency is an underrated differentiator: While not tied directly to tariffs, operational cost is still part of the equation. Several shops noted displays with lower energy consumption have become a selling point — especially for schools, cities, and businesses trying to manage long-term budgets.

Adapting to a new reality

What's clear is that the old model, relying heavily on international supply chains for critical display components, isn't holding up like it used to. More shops are looking for partnerships that combine modern technology with local accountability.

That doesn't mean every display needs to be fully made in the U.S., but having core operations like engineering, assembly, and support stateside is helping shops insulate themselves from global disruptions. And it's not just about avoiding tariffs, it's about being able to plan, quote, and deliver without second-guessing.

Closing thoughts

Tariffs may feel like a policy issue, but their impact is deeply personal for small businesses. They affect relationships, margins, and trust. The shops that will weather this season best aren't the ones cutting the lowest prices, they're the ones offering the most certainty.

By reevaluating your supply chain, seeking partners who align with your business goals, and prioritizing transparency and reliability, you can take back control of your quoting process and your margins.

In a volatile market, that kind of stability is the real competitive advantage.

About Almie Borromeo

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