April 28, 2026 · Elkhart

Steel Tariffs Hit 50%, Duke and NIPSCO Rates Keep Climbing: What Indiana Manufacturers Face Right Now

Steel tariffs hit 50% and Duke and NIPSCO electric rates are phasing higher. Here's the cost impact Indiana manufacturers need to plan for right now.

Daniel BurkePublished every day

Indiana manufacturers are absorbing a simultaneous price reset on two of their biggest input categories: steel tariffs have doubled to 50% and Duke Energy Indiana and NIPSCO electric rates are rising in approved phases through early 2026, compressing margins across every product line that depends on metal or power. That's before you account for AI workforce gaps and renewed pressure on the Elkhart RV sector. Here's the current picture, and the questions your team needs to answer with numbers, not guesses.

01Statewide

50% Steel Tariffs and Duke and NIPSCO Rate Increases Reset Your Cost Baseline

Section 232 tariffs on most foreign steel and aluminum imports doubled from 25% to 50% as of June 2025. The Richmond Fed has identified Indiana as one of the states carrying the heaviest tariff burden due to its concentration in autos, fabricated metals, and machine shops, and for steel product manufacturing from purchased steel, estimated tariff cost exposure has been running around 60% since mid-2025.

Read the story →

02Statewide

AI Promises Major Uptime Gains, But Only If You Can Staff It

Facilities deploying AI-driven predictive maintenance are cutting unplanned downtime by an estimated 20-50%. Computer vision is handling repetitive inspection tasks with higher accuracy, and generative tools are accelerating design and prototyping cycles.

Read the story →

03Elkhart

Elkhart RV Sector Posts a Third Year of Growth, Tariffs Push Back

Wholesale RV shipments reached approximately 342,000 units in 2025, a third straight year of recovery from the 2023 low of around 313,000 units. Indiana now produces roughly 86% of all RVs manufactured in North America, making Elkhart County and the surrounding region the center of that recovery.

Read the story →

Questions for Your Morning Huddle

Q: Given the 50% steel and aluminum tariffs and approved rate increases from Duke Energy Indiana and NIPSCO, where are our largest combined cost exposures by product line, and what can we do this quarter to reduce that pressure? A: Start with a line-by-line review of steel and aluminum spend by product and map it against the tariff rate. On the electricity side, pull 12 months of bills from both Duke and NIPSCO and identify which facilities carry the heaviest demand and consumption exposure before the next rate phase hits in early 2026.

Q: With tariffs now affecting both Canadian export markets and our steel and aluminum inputs, how are we adjusting our 2026-2027 sales forecasts and sourcing strategies? A: Any forecast still built on pre-tariff assumptions is underestimating risk. Reassess Canadian and Mexican customer volumes, identify alternative markets or product mixes, and get updated pricing from domestic steel suppliers to understand what a sourcing shift actually costs.

Q: What specific AI-related skills will our lines need in the next one to three years, and which local campuses or training partners are we actively working with to build that pipeline? A: The failure mode isn't buying the wrong software, it's deploying it without people who can interpret alerts, recover systems, and validate model outputs. Contact Purdue Polytechnic or your nearest Ivy Tech campus now, before your next implementation goes live.

Watch the full TEG Daily breakdown on YouTube: Watch this TEG Daily on YouTube

This brief

Elkhart County