Central Vacuum Manufacturer Case Study

Avnan’s existing customer, a North American central vacuum manufacturer had long relied on Avnan for high-quality electrical subassemblies produced in China. When new U.S. tariffs on Chinese imports were introduced, the customer’s cost exposure suddenly increased.

Looking to Avnan for a solution, they needed to delay imports in hopes that tariffs would drop during ongoing trade negotiations. Avnan stepped up with a logistics strategy that included warehousing finished goods in Canada. This allowed the customer to control when the product entered the U.S. market—preserving margins while maintaining inventory access.

Avnan’s role expanded from manufacturer to strategic supply chain partner.

Overview

• Product: Central Vacuum
• Project timeline: 6 months
• Project Scope: Over $60k

Challenges

• New U.S. tariffs significantly increased costs for goods sourced from China
• Client needed to delay U.S. imports in hopes of tariff relief, but lacked warehousing capacity

Results

• Avnan warehoused finished goods in Canada, delaying customs clearance until tariffs dropped
• Client maintained uninterrupted supply while reducing duty exposure
• Strengthened long-term partnership with added logistics and inventory management services

With new tariffs raising costs unexpectedly, the Central Vacuum customer needed a way to delay importation without halting production.

Their current model relied on direct shipments from China to the U.S., offering little flexibility. They didn’t have internal warehousing capacity, and product needed to be ready when called upon.

Ongoing trade negotiations hinted that tariff rates could improve, but there was no clear timeline. What they needed immediately was an on-demand fulfillment approach until there was a tariff resolution.

The client approached Avnan for a solution that could keep goods accessible, avoid additional duty fees, and remain responsive to changing tariff scenarios without introducing stockouts or creating significant holding costs.

The goal of this project was to redesign the interface of the controllers which involved changing the glass face material and adding new wireless sensor capabilities to the existing product. Due to the supply chain issues during the pandemic, some components were difficult to source and import for many ERV companies.

Though this particular project wasn’t dependent on chips for its sensors, alternative materials had to be sourced overseas to get the best pricing. Avnan’s task was to add new VOC (Volatile Organic Compound) sensor features and design a controller that had the ability to connect up to 5 wireless timers, to activate and override the humidity sensors, to integrate with other home appliances like kitchen and bath fans all while maintaining low energy consumption. This was not only a design challenge but a logistics one.

The client wanted the product in-market within a specific timeframe. With the complexity of the project, scope creep was inevitable but Avnan was able to deliver within the client’s expectations and budget.

Avnan continued manufacturing the assemblies in China but routed the finished goods to its Canadian warehouse instead of shipping directly to the customer.

With real-time inventory visibility, the customer was able to fulfill customer demands avoiding inventory shortages and managing an on-demand inventory balance. By temporarily holding product in Canada, Avnan delayed U.S. customs clearance, helping the client avoid the additional costs of tariffs during high-rate periods. This warehousing strategy provided the flexibility to control delivery timing, minimize duty exposure and offer a more streamlined customer experience.

Avnan handled all logistics and cross-border coordination, ensuring that the client’s operations stayed uninterrupted while trade conditions evolved.

Avnan’s proactive warehousing and logistics support helped the client navigate a volatile trade environment without any operational disruption. By offering flexible storage in Canada and managing release timing based on tariff fluctuations, the customer protected their margins and maintained delivery continuity.

This engagement highlighted Avnan’s ability to offer more than just manufacturing, they provided a full-service supply chain solution tailored to real-world business pressures.

The partnership deepened as a result, and the client continues to rely on Avnan’s technical and logistical expertise for long-term planning and execution.