Automation during recession is no longer a luxury—it’s a survival strategy. Recent developments have sent shockwaves through the small business community. On April 2, 2025, President Donald Trump announced sweeping tariffs, including a baseline 10% import tax globally, with certain countries facing rates as high as 104%. These tariffs have left many entrepreneurs scrambling to adjust to rising costs and supply chain disruptions.
As someone who has navigated the unpredictable waters of entrepreneurship, I understand the anxiety that comes with such economic shifts. When I first launched Backbone America in 2016, I faced my own set of challenges, leading to financial setbacks and valuable lessons. One of the most significant realizations was the power of automation—not just as a tool for efficiency, but as a critical strategy for resilience during uncertain times.
The Immediate Impact of Recent Tariffs on Small Businesses
The newly imposed tariffs have had immediate and tangible effects on small businesses across various industries:
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Fashion Industry: Andrew Chen, founder of the New York-based fashion brand 3sixteen, highlighted that sourcing materials like Japanese denim and Canadian fleece now comes with increased costs, potentially raising retail prices by $50 per item. Business Insider -
Retail Sector: Companies such as Day Owl and Oiselle are facing tough decisions between raising prices, which could hurt sales, or absorbing the costs, which would erode already thin margins. Reuters
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Toy Industry: Casey Ames, owner of Harkla, a company that designs developmental toys for children with special needs, calculated that his import tax would go from $26,000 to $346,000 due to a 104% tariff on Chinese imports. This sudden increase threatens the viability of his product line. New York Post
These examples underscore the vulnerability of small businesses to external economic policies and the pressing need for adaptive strategies.
How Automation During Recession Provides a Buffer Against Economic Shocks
Reflecting on my journey with Backbone America, I vividly remember the early days when I handled everything manually—every customer inquiry, product delivery, follow-up email, and social media post. It was exhausting. I often found myself working late into the night, juggling tasks that felt never-ending. It wasn’t sustainable, especially as someone building a business while still working full-time.
Automation changes everything. Each task I automated—whether it was setting up an email sequence, scheduling content, or processing course enrollments—was like reclaiming a piece of my time and energy. One by one, I could set those tasks aside and let them run on their own. It felt like lifting weights off my shoulders. Suddenly, I had room to focus on what really mattered: growth, innovation, and serving my audience at a higher level.
In light of current events, especially with the recent tariff increases and looming recession fears, implementing automation during a recession offers more than convenience—it provides security. It reduces dependency on human bandwidth and lowers operational costs. Most importantly, it gives entrepreneurs breathing room to adapt strategically instead of reacting frantically.
1. Mitigating Increased Operational Costs
With tariffs driving up the cost of imported goods, maintaining profit margins becomes increasingly challenging for small businesses. It’s tempting in tough times to look at payroll as the first place to cut—but that approach often comes at the cost of morale, service quality, and long-term growth.
That’s where automation during recession becomes a game-changer—not as a tool for reducing headcount, but as a way to protect it. By streamlining repetitive, time-consuming tasks like scheduling, invoicing, or data entry, automation allows you to divert resources away from busywork and toward the high-impact services that truly set your business apart.
This shift empowers your employees to focus on higher-level responsibilities—like customer engagement, strategic problem-solving, and innovation—which are especially critical when customer loyalty becomes harder to earn during a recession. Rather than being reactive, automation lets your team become more proactive in adding value, delivering a better experience, and helping your business stand out in a crowded, cautious market.
In my own journey with Backbone America, automation didn’t just make things easier—it created the space for better service, smarter decision-making, and ultimately, sustainable growth without sacrificing the people who helped me build the business in the first place.
2. Enhancing Supply Chain Flexibility
Automation during recession does more than streamline internal tasks—it enhances your ability to respond quickly to external disruptions, especially in your supply chain. With tariffs now drastically inflating the cost of imports, and suppliers themselves facing uncertainty, real-time visibility into your operations has never been more critical.
Automation tools can provide detailed, up-to-the-minute insights into inventory levels, reorder points, delivery timelines, and even supplier reliability. Instead of relying on manual spreadsheets or waiting for end-of-month reports, you get actionable data at your fingertips. This empowers you to make fast, confident decisions—such as shifting to a different supplier, adjusting order quantities, or even proactively communicating delays to customers to manage expectations.
During a recession, supply chain disruptions can escalate quickly. One delayed shipment or missed restock can cascade into lost revenue and damaged customer trust. But with the agility that comes from automation during recession periods, small businesses can pivot with minimal friction. You’re no longer just reacting to problems—you’re anticipating them and staying one step ahead.
3. Maintaining Customer Engagement
Economic uncertainty often brings consumer hesitation. People become more cautious with their spending, delay purchases, and carefully weigh their options before committing. For small businesses, this means that staying top-of-mind and building trust becomes more important than ever—but also more difficult when you’re juggling limited time, energy, and resources.
This is where automation steps in as a powerful ally.
Automated marketing campaigns allow you to maintain consistent and personalized communication without needing to manually manage every touchpoint. Whether it’s a welcome series for new subscribers, a nurturing email flow for potential buyers, or a special offer delivered at just the right time, automation ensures your audience continues to hear from you—even when you’re not actively online.
Better yet, these messages can be tailored based on behavior and preferences, helping your brand feel personal and responsive instead of generic or pushy. This ongoing engagement builds familiarity, nurtures trust, and keeps your business in the conversation until the customer is ready to buy.
In my case, automation has helped me stay connected with new subscribers, guide them through free resources, and offer relevant next steps without overwhelming them—or myself. These systems don’t just save time; they build relationships. And relationships are what lead to loyal customers who stick around, especially in uncertain times.
By keeping your audience engaged and supported without burning out your team (or yourself), automation during recession becomes one of the most effective ways to maintain sales momentum and stand out when everyone else is going quiet.
Practical Steps to Implement Automation During Recession
For those considering integrating automation into their operations, here are some actionable steps:
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Assess Repetitive Tasks: Identify tasks that are time-consuming and repetitive. These are prime candidates for automation.
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Research Suitable Tools: Depending on your industry, explore tools that cater to your specific needs. For instance, e-commerce businesses might benefit from automated inventory management systems.
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Invest in Training: Ensure that you and your team are adequately trained to utilize automation tools effectively.
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Monitor and Adjust: Regularly review the performance of automated systems and make necessary adjustments to optimize efficiency.
Embracing Automation: A Personal Reflection
Looking back, embracing automation was a turning point for Backbone America. It not only streamlined our operations but also provided a buffer against unforeseen challenges. In today’s climate, where tariffs and economic uncertainties loom large, automation stands out as a proactive strategy to safeguard and sustain small businesses.
For fellow entrepreneurs feeling the pressure of recent developments, consider exploring automation as a means to fortify your business. The initial investment of time and resources can yield substantial long-term benefits, positioning your enterprise to weather economic storms more effectively.
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