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Innovation takes a backseat at small companies as tariffs become a full-time preoccupation

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NEW YORK (AP) — Toy robots that teach children to code. Sneakers made in America. Mold-resistant kitchen gadgets.

The three items are among new products that have gotten stuck in the pipeline due to President Donald Trump’s unpredictable trade policies, according to the brand founders behind the stalled items. They say that instead of fostering U.S. innovation, Trump’s tariffs are stifling it with extra costs and unexpected work.

At Learning Resources in Vernon Hills, Illinois, Made Plus in Annapolis, Maryland, and Dorai Home in Salt Lake City, research and development have taken a backseat to recalculating budgets, negotiating with vendors and tracking shipments in the shifting tariff environment.

“If we don’t have enough cash to cover just the restocks of the things that we know we need, do we want to take a risk on this new thing when we don’t know how well it will sell yet?” Dorai Home founder Kelsey O’Callaghan said.

O’Callaghan started the eco-friendly home goods company with a stone bath mat and now offers about 50 kitchen and bathroom accessories, which are made in China with a non-toxic material that dries quickly. New launches are critical to increasing sales and attracting customers, she said.

As Trump increased the tariff on Chinese goods to 20% and as high as 145% before reducing the import tax rate to 30% for 90 days, Dorai Home postponed introducing new merchandise. O’Callaghan said she had to lay off the CEO as well as the head of product development, who helped the company jump on new trends.

“I haven’t really put the time or the emphasis on (innovation) because I’m covering too many other people’s roles,” she said.

The company paused shipments from China in early April but resumed some on a staggered basis after the president’s rate reduction. On Wednesday, Trump touted progress in U.S.-China trade talks.

With details still sketchy and a deal not finalized, entrepreneurs interviewed by The Associated Press said they viewed the tariffs war as an ongoing threat.

Tariffs and American innovation

The potential stunting of innovation follows an economic slowdown during the coronavirus pandemic, when companies also had to put projects on hold. Some experts think the on-again-off again tariffs may have more enduring consequences because they rewire markets and upend business strategies.

“When executive attention shifts from innovation to regulatory compliance, the innovation pipeline suffers. Companies end up optimizing for the political landscape rather than technological advancement,” economists J. Bradford Jensen, a nonresident senior fellow at the Peterson Institute for International Economics, and Scott J. Wallsten, president of the Technology Policy Institute think tank, wrote in an April blog post.

Trump has argued that curtailing foreign imports with tariffs would help revive the nation’s diminished manufacturing base. Analysts and various trade groups have warned that fractured trade ties and supply chains may depress R&D activity of U.S. tech and health care companies that rely on international partnerships or foreign suppliers.

Small companies, which often drive the innovations that create jobs and economic growth, already are under strain.

With fewer people on staff and tighter budgets compared to large corporations, entrepreneurs say they are spending more time on cutting costs, suspending or arranging orders, and deciding how much of their tariff-related costs to charge customers. That means they’re spending less time thinking of their next big ideas.

Schylling Inc., a Massachusetts company that produces modern versions of Lava lamps, Sea-Monkeys, My Little Pony and other nostalgic toys, has its products made in China. As part of its strategy to account for tariffs, the company put a group of employees on temporary unpaid leave last month to reduce expenses.

Beth Muehlenkamp, who was marketing director at the company, was one of them, but now she and several others who were furloughed, were permanently laid off early this month. She noted that she and other staff members typically would have been planning products for the final months of 2026. But Schylling isn’t focusing on designing new products given the unstable trade outlook.

“It’s really hard to focus on innovation and creativity when you’re consumed with this day-to-day of how we’re just going to balance the books and deal with the changing rates,” Muehlenkamp said.

An uneven product pipeline

Even some companies that do their manufacturing in the U.S. are scaling back investments in new products. Made Plus, a Maryland company that makes athletic shoes at a small factory in the state capital, put a planned golf line on hold because two key components — a foam insole and the tread for the bottom of the shoe — currently are made in China, founder Alan Guyan said.

The company customizes its shoes on demand and charges $145 to $200 a pair. The footwear is made from recycled plastic bottles with advanced knitting, 3D printing and computerized stitching techniques. It’s looking into getting components from Vietnam instead of China.

Embracing new technology is essential to restoring manufacturing capability in the U.S. and competing with Asia, Guyan said. But given ongoing trade frictions, he said he does not want to invest time or money evaluating the latest embroidery and knitting machines, which come from Germany, Italy, China and the U.S.

“We’re just battening down the hatches a little bit and just hoping that there’s enough influence in the community of footwear that it will somewhat change and get resolved and we can move forward,” he said of the tariff roller coaster.

In contrast, many big companies are forging on. Google parent Alphabet confirmed late last month that it still planned to spend $75 billion on capital expenditures this year, with most of the money going toward artificial intelligence technology.

What’s next for R&D?

Sonia Lapinsky, a managing director at consulting firm AlixPartners, has advised her clients to limit tariff discussions to a small group of executives and to keep their product creation cycles in motion.

Businesses have an even greater imperative to come up with attention-grabbing innovations when consumers may be reluctant to open their wallets, she said.

Yet smaller companies may struggle to wall off tariff discussions from the rest of the business.

Learning Resources CEO Rick Woldenberg said that roughly 25% to 30% of the 350 employees at the educational toy company’s headquarters, including product developers, are working at least part-time on tariff-related tasks.

The company usually develops 250 different products a year and expects to get half that many off the drawing board for 2026, Woldenberg said. While exploring factories in countries besides China, he said, Learning Resources is delaying the next generation of its interactive robots that help children develop computer programming skills through games and other activities.

The family-run business and Woldenberg’s other toy business, hand2Mind, are locked in a legal battle with the Trump administration. The jointly owned companies filed a lawsuit accusing the president of exceeding his authority by invoking an emergency powers law to impose tariffs.

A federal judge ruled in favor of the two companies last month, and the administration has appealed the decision. Woldenberg said he’s ready to take the case to the U.S. Supreme Court.

“It’s a win at the Supreme Court that we need,” he said. “And so until then, there will be no certainty. Even then, if the government is bound and determined to keep us in an uncertain situation, they’ll be able to do that.”



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Faith-based camps like those hit by Texas floods are rite of passage for many

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Texas’ catastrophic flooding hit faith-based summer camps especially hard, and the heartbreak is sweeping across the country where similar camps mark a rite of passage and a crucial faith experience for millions of children and teens.

“Camp is such a unique experience that you just instantly empathize,” said Rachael Botting of the tragedy that struck Camp Mystic, the century-old all-girls Christian summer camp where at least 27 people were killed. A search was underway for more than 160 missing people in the area filled with youth camps as the overall death toll passed 100 on Tuesday.

Botting, a former Christian camp counselor, is a Wheaton College expert on the role camp plays in young people’s faith formation. “I do plan to send my boys to Christian summer camps. It is a nonnegotiable for us,” added the mother of three children under 4.

Generations of parents and children have felt the same about the approximately 3,000 faith-based summer camps across the country.

That is because for many campers, and young camp counselors, they are crucial independence milestones — the first time away from family or with a job away from home, said Robert Lubeznik-Warner, a University of Utah youth development researcher.

Experts say camps offer the opportunity to try skills and social situations for the first time while developing a stronger sense of self — and to do so in the safety of communities sharing the same values.

Camp rules: Do good and keep the faith

After the floodwaters rampaged through Camp Mystic, authorities and families have been combing through the wreckage strewed between the cabins and the riverbank.

On Sunday, a man there carried a wood sign similar to those seen hanging outside the door of several buildings. It read: “Do Good. Do No Harm. Keep Falling In Love With Jesus.”

For generations, these Texas campers have been challenged to master quintessential summer activities from crafts to swimming while also growing in spiritual practices. Campers and counselors shared devotionals after breakfast, before bed and on Sunday mornings along the banks of the Guadalupe River, according to Camp Mystic’s brochure and website. They sang songs, listened to Scripture and attended Bible studies, too.

How big of a role faith has in the camp experience varies, Botting said. There are Christian camps where even canoeing outings are discussed as metaphors for spiritual journeys, others that aim to insert more religious activities like reading the Bible into children’s routines, and some that simply seek to give people a chance to encounter Jesus.

The religious emphasis also varies at Jewish camps, which span traditions from Orthodox to Reform. Activities range from daily Torah readings to yoga, said Jamie Simon, who leads the Foundation for Jewish Camp. The group supports 300 camps across North America, with about 200,000 young people involved this summer alone.

What they all have in common is a focus on building self-esteem as well as positive Jewish communities and identities — all particularly important as many struggle with antisemitism as well as the loneliness and mental health barriers common across all youth, Simon said.

At Seneca Hills Bible Camp and Retreat Center in Pennsylvania, there is archery, basketball and volleyball for summer campers, but also daily chapel, listening to missionaries and taking part in Bible study or hearing a Bible story depending on their age, which ranges from 5 to 18-year-olds.

“There’s a whole host of activities, but really the focus for camp is building relationships with one another and encouraging the kids’ relationships with God,” said camp executive director Lindon Fowler.

For many, participating in the same summer camp is also a generational tradition. Children are sent to the same place as their parents and grandparents to be around people who share the same value system in ways they can’t often experience in their local communities.

A taste of faith, wilderness and independence for more than two centuries

Because of their emphasis on independence and spending time away from family, summer camps in general have been especially popular in North America, Lubeznik-Warner said.

In the United States, faith-based summer camps date back to two parallel movements in the 19th century — the revivalist religious gatherings in tents and the “fresh-air movement” after the industrial revolution — and boomed after World War II, Botting said.

Particularly since the COVID-19 pandemic lockdowns, as questions about children’s dependence on technology have surged, interest has grown in summer camps as “places where kids can really unplug, where kids can be kids,” Botting said.

Many parents like that camp can disconnect their children from their devices.

“We’re interested in campers hearing similar messages that they’re going to get at home or in their church or their faith communities,” Fowler said. He added: “I think they can hear … the meaning of things more clearly while they’re at camp” and away from distractions.

For Rob Ribbe, who teaches outdoors leadership at Wheaton College’s divinity school, all the elements of camp have biblical resonance.

“God uses times away, in community, often in creation … as a way to shape and form us, and help us to know him,” Ribbe said.

Summer camp challenges: Safety protocols and determination

There are faith-related challenges, too. As children explore their identities and establish bonds outside their families, many programs have been wrestling with how to strike a balance between holding on to their denominations’ teachings while remaining welcoming, especially on issues of gender and sexuality, Botting said.

Rising costs are also a pressing issue. Historically, camps have been particularly popular among middle to upper-income families who can afford fees in the thousands of dollars for residential camps.

And then there is safety — whether in terms of potential abuse, with many church denominations marred by recent scandals, or the inherent risks of the outdoors. In Texas’ case, controversy is mounting over preparedness and official alerts for the natural disaster.

Every summer, hundreds of thousands of parents trust Brad Barnett and his team to keep their children safe — physically and spiritually — at the dozens of summer camps run by Lifeway Christian Resources.

Barnett, director of camp ministry, said already his staff has shared personal connections to Camp Mystic: One staff member’s daughter was an alum; another’s went to the same day camp with a girl who died in the flood; and a former staff member taught at the high school of a counselor who died.

But the tragedy is also informing their work as they provide yet another week of Christian summer camp experiences for children across the country.

“That’s the punch in the gut for us,” he said. “We know that there’s an implicit promise that we’re going to keep your kid safe, and so to not be able to deliver on that and the loss of life, it’s just so tragic and felt by so many.”

Experts say camp staff are likely to double down on best practices to respond to emergencies and keep their campers safe in the aftermath of the Texas floods.

“It’s, truly, truly heartbreaking for the whole community of Christian camping,” said Gregg Hunter, president of Christian Camp and Conference Association, which serves about 850 member camps catering to about 7 million campers a year.

But the positive and often lifelong impacts on children’s confidence and faith identity are so powerful that many leaders expressed hope the tragedy wouldn’t discourage children from trying it.

“It’s where my life took a dramatic turn from being a young, obnoxious, rebellious teenager,” Hunter said. “My camp experience introduced me to so many things, including to my faith, an opportunity, an option to enter into a relationship with God.”

Simon, a former camper and camp leader, said she is happy her son is currently at camp — even though there is a river by it.

“I wouldn’t want him to be anywhere else,” she said.

___

Associated Press writers Jim Vertuno and Holly Meyer contributed.

___

Associated Press religion coverage receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content.



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Armani couture channels black as maestro misses Paris bow for 1st time, days from 91st birthday

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PARIS (AP) — Armani Privé opened Tuesday under an unmistakable shadow. For the first time in the 20-year history of his couture house, Giorgio Armani was not present in Paris to take his bow.

Days from his 91st birthday and following doctors’ advice after a recent hospital stay, Armani reportedly oversaw the Paris couture week show remotely from home, a moment of absence that lands heavily for a designer who has shaped every one of his brand’s collections since its founding.

The show’s theme, “Seductive Black,” played out with literal and symbolic force on the runway: black in myriad forms, from liquid velvet and lacquered silk to pavé crystals and flashes of gold. Even the models’ makeup followed suit, rendered in shades of gray.

For some in the front row, the relentless palette felt pointed. Guests quietly wondered if the choice of black was a coded message from the maestro himself.

Armani missed Milan, too

This is not the first major show Armani has missed this season. Just weeks ago, he was forced to sit out Milan Fashion Week for the first time in the label’s history, following a brief hospitalization.

According to the brand, the absence was a precaution to save energy for his Paris couture appearance.

For decades, Armani — often referred to as “Re Giorgio,” or King George, in Italy — has been both the creative and business force behind one of fashion’s last great independent empires.

The Tuesday collection balanced tension and control. After an uncertain start, including velvet jodhpurs and stark crystalline seams, Armani’s familiar codes quickly emerged: tuxedo jackets transformed into evening gowns with plunging lapels and floating bow ties, tailored blazers worn on bare skin and military-inspired equestrian jackets paired with slim velvet pants.

Bursts of embroidery and colored feathers provided a balance from the monochrome.

A living fashion ma

estro

Armani’s recent absences have sent ripples through the industry. In a landscape dominated by conglomerates like LVMH and Kering, Armani remains the sole shareholder of his company, personally overseeing every collection for nearly 50 years. In 2024, Armani Group reported revenues of $2.5 billion, while Giorgio Armani’s personal fortune is estimated at $11–13 billion — even as the global luxury market faces headwinds.

Armani is widely credited with redefining men’s and women’s tailoring, pioneering gender-fluidity in fashion, and inventing celebrity red-carpet dressing, from Julia Roberts to Cate Blanchett. Yet the designer himself has acknowledged that age is now a reality to deal with and that pulling back could be a necessity.

Whether the monochrome collection was a deliberate metaphor or simply a showcase of discipline, “Seductive Black” felt personal — both a mood and a message, perhaps an understated nod to a master whose presence, even in absence, remains absolute. As the show closed, the final bow belonged to the models alone. But Armani’s vision — uncompromising and unmistakably his — filled the room.



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Stéphane Rolland’s Paris couture show is filled with space-age glamor

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PARIS (AP) — Stéphane Rolland went back to what he does best on Tuesday: unadulterated couture. This season at Paris Couture Week, Rolland stripped away gimmicks and let the clothes do the talking, unveiling a dazzling palette of ivory, black, and red — with giant spangles shimmering like stardust or cosmic fish scales.

A live string orchestra set the mood as Rolland’s signature silhouettes reshaped the female form: mermaid gowns hugged the body, giant tulle trains trailed behind, and severe white dresses with razor-sharp shoulders brought a surreal, intergalactic edge. Space-age references ran throughout, from pointy shoulders to jewels worn as talismans — adorned on gowns or set on the forehead like interplanetary insignia.

It marked a confident return to classic Rolland after recent seasons experimenting with format and mood. Last year, Rolland broke with tradition, staging a collaborative, student-led show inspired by the serenity of the desert. But on Tuesday, the focus was undiluted couture, delivered with maximum impact.

A celebrity favorite — counting Kim Kardashian and Cardi B among his fans — Rolland is one of Paris fashion’s last couture independents. His trademark mix of sculptural tailoring, high drama, and Parisian mystique was on full display, proving that sometimes, the boldest move is simply perfecting your own signature.



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