Tariffs Shake Up the Drilling Industry
The Industry Responds with Strategic Solutions

Image: Vichien Petchmai / MicroStockHub / Getty Images Signature
The water well drilling industry is facing significant headwinds, with import tariffs disrupting supply chains, driving up costs, and creating widespread uncertainty. Franklin Electric—a leading provider of groundwater pumping solutions—is meeting these challenges head-on through strategic supply chain adjustments and a strong commitment to supporting its customers throughout the turbulence.
Andrew Schwarze, Senior Business Unit Director for US/CAN Groundwater Distribution at Franklin Electric, highlights the significant impact tariffs are having on operations. “Import tariffs create new challenges and increase costs for manufacturing operations, specifically those we rely on to support the North American business,” he says. The company is closely monitoring the evolving trade policies while ensuring their products remain accessible and cost-effective for drilling professionals.
To counter the effects of tariffs, Franklin Electric has implemented a multi-faceted strategy to optimize its supply chain. The company is actively diversifying its supplier base, exploring alternative manufacturing solutions, and investing in vertical integration at key production facilities in the United States.
Schwarze emphasizes the importance of flexibility, noting that “our dedicated teams strive to continue evaluating alternatives, innovating, and optimizing our supply chain across our global footprint.” By leveraging strong vendor relationships and exploring cost-sharing models with suppliers, Franklin Electric is working to minimize the financial burden on its partners.
Strategic investments in domestic manufacturing—such as facilities in Canby, Oregon, and Oklahoma—also play a critical role in maintaining steady inventory levels. These efforts help ensure drillers have access to field-ready products and custom-built solutions despite market fluctuations.
From the manufacturing side, Tom Omli, President of Geoprobe Systems, underscores the current uncertainty around the long-term impacts of tariffs. “It’s too early to tell the effects of tariffs right now—most of our steel is U.S.-based, 85% or more—but we do use a lot of specialty steel,” Omli says. “The question becomes, will it force our providers to bump up their prices—we are expecting some price increases.”
Omli adds that the unpredictability of trade policy changes makes forward planning difficult. “There’s not a lot we can do right now—ripple effects create uncertainty, and you can only make decisions based on certainty. We are positive, but we see what’s going on.”
“There’s not a lot we can do right now—ripple effects create uncertainty, and you can only make decisions based on certainty. We are positive, but we see what’s going on.”
– Tom Omli, President of Geoprobe Systems
He also cautions against trying to forecast too far ahead. “For most things there’s a reactionary cause and effect—I think there will be effects, but we don’t pretend to be smart enough to know what’s going to happen,” Omli notes. “We wouldn’t be surprised by some disruptive change—our job is to pay attention and not assume anything good or bad.”
Financial Resilience in Indigenous Communities
As trade norms continue to shift and tariffs disrupt economic forecasts, Nations Royalty is stepping up to support Indigenous communities and investors with a model built for resilience. A spokesperson from the company shared:
“As more tariffs come into place and trade norms enter a state of flux, Nations Royalty is helping provide Indigenous communities and investors with the stability they’re searching for. Our model reduces risk through asset diversification and creates a more attractive investment environment in spite of the disruptions caused by the ongoing trade dispute. Additionally, by offering partners the option to bring forward the future value of their royalties, we’re enabling community members to weather this economic storm with financial flexibility—empowering them to make the investments they need for both short and long-term growth.”
Their approach not only addresses the immediate economic pressures but also empowers long-term self-determination and sustainable development in resource-rich regions. In a volatile market, financial tools that provide flexibility and foresight are proving to be just as vital as physical infrastructure.
The Road Ahead
The broader water well drilling industry is bracing for the long-term consequences of increased tariffs, which could lead to rising equipment and material costs. Companies may need to pass on these expenses to consumers, making it even more crucial for groundwater professionals to demonstrate their value.
Despite these challenges, Schwarze remains optimistic. “As an industry, we’ve faced challenges like these in the past, and we’ve always come out stronger,” he says. “Drilling is vital to communities, and people need quality, reliable equipment to support it.”
To stay competitive, Franklin Electric encourages industry professionals to forge strong partnerships with suppliers who prioritize efficiency and reliability. The company continues to develop intuitive pumping systems and service tools designed to help drillers operate more efficiently while uncovering cost savings where possible.
Adapting Through Innovation and Partnership
As tariffs remain a key concern for the industry, companies must adopt proactive strategies to weather the economic impact. Franklin Electric’s commitment to supply chain resilience and customer support positions it as a trusted partner in uncertain times.
Groundwater professionals in the United States and Canada can count on Franklin Electric to provide not just high-quality products but also the resources and expertise needed to navigate a shifting market. By focusing on innovation, collaboration, and operational efficiency, the company aims to help drillers sustain their businesses and continue delivering essential water solutions to communities.
And they’re not alone. Companies like Geoprobe Systems and Nations Royalty are proving that resilience, adaptability, and clear-eyed optimism are still some of the most valuable tools in the drilling and resource development business. Whether through technology, infrastructure, or financial empowerment, these organizations are weathering today’s storms—and preparing for a stronger tomorrow.Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!