Bay Fastening Systems, a distributor of stainless steel, aluminum, and brass hardware, is adjusting its operations to manage the impact of U.S. tariffs.
The company, recently acquired by European industrial distributor FICODIS, is known for serving a wide range of clients, from Fortune 500 companies to local manufacturers, and for offering specialized inventory management programs and expertise in fastener solutions.
Bay’s products are widely used across industries, including renewable energy, where the company stocks fasteners commonly employed in wind and solar manufacturing. Its online division, Bay Supply, acts as a digital marketplace that connects buyers with suppliers and provides tools for managing orders and inventory.
Tariffs have created unique challenges for the company. Michael Eichinger, Bay’s chief operating officer, said the measures are “mixed. I’m doing, uh, doing it all—managing inventory, adjusting pricing, and maintaining customer service.” He added that tariffs affect more than costs: “They’re not just a cost issue—they affect timing, sourcing, and even customer expectations.”
Eichinger described Bay’s approach as comprehensive. “We’re doing it all… you know, it’s through all of this. So, it hasn’t,” he said, underscoring the company’s effort to absorb the impacts of tariffs without interrupting supply or service. Managing these pressures, he said, requires simultaneous attention to procurement, pricing, and logistics.
Inventory management has been a critical focus. Eichinger explained that Bay evaluates which products to stock and in what quantities to balance availability with capital efficiency. “Some products see higher tariffs than others, so we evaluate each line individually,” he said. “We’re looking carefully at what products we bring in, when we bring them in, and how we price them.”
Pricing, too, has been handled selectively. Rather than implementing across-the-board increases, Bay evaluates each product line based on tariff exposure and market conditions. Eichinger said the company tries to absorb some costs internally while maintaining transparency with customers. “We’re transparent with customers when adjustments are needed, and we look for ways to absorb some costs ourselves to stay competitive,” he said.
Digital tools play a significant role in this strategy. Eichinger emphasized that technology allows Bay to respond quickly to changes in tariffs, anticipate bottlenecks, and make data-driven procurement and pricing decisions. “Digital transformation and the challenges faced by B2B companies” is a primary focus, he said.
Bay Supply, the company’s online division, further informs operations. Eichinger said the company reviews its digital buyer experience annually to understand how customers interact with its platforms. “That helps us anticipate demand, optimize inventory levels, and maintain service for both large corporations and smaller manufacturers,” he said. By tracking online activity, Bay can align inventory and shipping strategies to reduce disruptions caused by tariffs.
FICODIS acquisition has added scale and flexibility. Eichinger said access to a broader supplier network allows Bay to spread risk and improve sourcing efficiency. “Being part of FICODIS gives us scale and access to a broader network, which helps us spread risk and optimize sourcing. That’s particularly valuable when tariffs hit certain supply chains harder than others,” he said.
Maintaining open communication with customers has been critical. Eichinger said Bay works closely with clients to explain tariff-related pricing changes and operational adjustments. “Most understand that these are external factors, but they expect us to manage them responsibly,” he said. This approach, he added, reinforces trust and positions Bay as a dependable partner despite external pressures.
Bay is also looking ahead to ensure long-term resilience. Eichinger said the company is exploring technology upgrades, supplier diversification, and long-term inventory planning to mitigate future risks. “We’re looking at long-term inventory strategies, technology upgrades, and supplier diversification,” he said. “It’s been a learning process, but I’m confident in our approach—balancing inventory, pricing, and technology.”
He noted that digital transformation extends beyond tariffs, helping Bay coordinate procurement, warehousing, and customer service more effectively. “Digital transformation isn’t just a buzzword for us—it’s central to staying agile in this environment,” Eichinger said.
The FICODIS acquisition also provides operational leverage. Eichinger reflected on the transition, recalling the reassurance from the acquiring firm: “Those guys I know. You’re part of them now.” The comment underscored confidence in integration and the operational benefits the partnership brings.
Eichinger stressed that, despite the challenges, Bay remains committed to customer outcomes. “We’re doing it all—managing inventory, adjusting pricing, and maintaining customer service. That’s how we keep our operations stable, and our customers satisfied,” he said. His comments highlight Bay’s dual focus on operational efficiency and client service, even in a volatile trade environment.
Bay’s approach combines expertise in traditional manufacturing, renewable energy fasteners, and digital operations. By integrating selective inventory strategies, nuanced pricing adjustments, and advanced digital tools, Bay aims to maintain service levels and competitiveness. Eichinger said the company is confident that these measures, combined with the scale and resources provided by FICODIS, will allow it to navigate current and future trade pressures effectively.
Looking forward, Eichinger said Bay plans to continue refining its digital capabilities and supply chain strategies to respond to evolving customer demands and market conditions. “It’s mixed. I’m doing, uh, doing it all, but I’m confident in our approach,” he said.
As tariffs and global trade uncertainty continue to challenge B2B distributors, Bay offers a model of how operational agility, technology, and customer communication can be leveraged to sustain business performance. By aligning its core expertise with digital tools and the support of an international partner, Bay is positioning itself to weather external pressures while maintaining an elevated level of service for both major corporations and smaller manufacturing clients.
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