Survey shows companies expanding FTZ operations to manage tariff volatility, but on fragmented systems, are creating compliance and execution risk
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MIAMI, FL, UNITED STATES, June 23, 2026 /EINPresswire.com/ — QAD | Redzone, provider of the leading Agentic AI-powered manufacturing platform including supply chain logistics and global trade compliance management solutions, today announced new research showing that tariff volatility is driving companies to expand Foreign-Trade Zone operations to reduce duty exposure, strengthen audit readiness, and protect margins. The research also reveals that many teams are scaling these FTZ programs on fragmented systems that are not keeping pace with today’s operational and compliance demands.
According to the survey, 67% of companies using Foreign-Trade Zones reported negative FTZ audit findings in the last 11 months, while 87% said inadequate FTZ software has caused financial harm. The research was sponsored by QAD, in conjunction with AWS and conducted by Dimensional Research, surveying 301 qualified enterprise executives and senior professionals responsible for international trade, supply chain, and compliance operations.
The research found that 97% of respondents use multiple software applications to manage daily FTZ operations, including ERP systems, dedicated FTZ ICRS software, spreadsheets, custom applications, and repurposed tools. At the same time, 80% said their FTZ software is missing key capabilities needed to manage current tariff volatility, and only 20% said their software automatically updates when tariffs change. This highlights the fact that new and old FTZ systems are falling behind; only the systems and teams that are agile and able to pivot to the changes quickly are able to keep up.
The consequences are showing up in both compliance and financial performance. Most negative audit findings were attributed to fragmented FTZ software issues, and financial loss was identified as the top consequence of negative FTZ audits.
“FTZs are no longer a back-office compliance program. They are now a strategic tariff mitigation tool, but many companies are trying to scale them on systems that were never designed for this level of volatility,” said Joshua Guy, VP of Global Trade Management at QAD. “The risk is not just that teams are working harder. The risk is that fragmented FTZ operations are creating audit exposure, missed savings, and preventable financial loss.”
The research also found that to manage the growing complexity, 99% of companies are using or planning to use AI to manage FTZ operations, underscoring the need for stronger data foundations, integrated workflows, and scalable compliance infrastructure before automation can deliver meaningful value.
The full report is available here.
About QAD | Redzone
QAD | Redzone is redefining manufacturing and supply chains through its intelligent, adaptive platform that connects people, processes, and technology into a single System of Action. With its core pillars — Redzone (frontline empowerment), Adaptive ERP (the intelligent backbone), and Supply Chain (logistics and global trade compliance), all powered by ChampionAI (Agentic AI for manufacturing) — QAD | Redzone helps manufacturers, distributors, and logistics providers operate at Champion Pace, achieving measurable productivity, resilience and growth. To learn more, visit www.qad.com or call +1 805-566-6100. Find us on LinkedIn, X, Facebook and Instagram.
Contact
Caleb Finch
Public Relations
805-566-6100
publicrelations@qad.com
Kathy Suchowiecki
Markit Strategies
586-354-7888
email us here
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