As we move into the final quarter of the year, manufacturing leaders across Wisconsin are facing a familiar challenge: contract renewal season. But this year's renewals come with unfamiliar complications. Supply chain volatility, shifting material costs, and economic uncertainty have transformed routine contract extensions into strategic negotiations that can make or break your profitability in 2026.

I've spent the past few months working with manufacturing clients on these exact issues. What I'm seeing is that the manufacturers who approach Q4 renewals strategically—understanding both the legal framework and the business realities—are positioning themselves for competitive advantages while others are simply hoping their existing agreements hold up.

Let me share what I've learned about navigating these negotiations effectively.

Why This Year's Contract Renewals Are Different

Here's the reality: the supply chain agreements you signed three or five years ago were drafted for a different economic environment. Back then, we weren't dealing with the level of material cost fluctuations, transportation disruptions, or supplier capacity constraints that have become routine today.

I recently reviewed a vendor agreement for a manufacturer that had been in place for years. The force majeure clause was a standard template—fine for its time—but it didn't account for the types of disruptions we're seeing now. When their supplier faced a six-month delay on a critical component, neither party had a clear framework for managing the situation. What should have been a straightforward problem became a dispute that threatened the entire relationship.

That's not a unique story. It's playing out in manufacturing operations across Wisconsin.

The Strategic Opportunity in Q4 Renewals

Here's what separates strategic manufacturers from reactive ones: they see Q4 renewals not as a burden, but as an opportunity to strengthen their supply chain legal infrastructure.

Think about it this way: you're already going to invest time in these renewals. The question is whether you're going to use that time to simply extend existing terms, or whether you're going to thoughtfully address the risks that could impact your operations next year.

The most successful manufacturers I work with approach renewals with three key questions:

1. What supply chain risks kept me up at night this year that my current contracts don't address?
2. What leverage do I have in this negotiation, and how can I use it strategically?
3. What terms would give me the operational flexibility I need to manage uncertainty?

Let me walk through the specific contract provisions that matter most right now.

Supply Chain Agreement Negotiations: What Actually Matters

When I sit down with manufacturing clients to review their supply chain contracts, I'm not just looking at legal compliance. I'm thinking about how these agreements will perform when things go sideways—because understanding what happens when relationships break down is what twenty years of litigation experience teaches you.

Understanding Your Current Economic Position

Before you negotiate anything, you need to understand your leverage. Are you dealing with a sole-source supplier or do you have alternatives? Has your order volume made you a significant customer? Is your supplier facing capacity constraints that make your business more valuable to them than it was a year ago?

These aren't just business considerations—they directly inform what terms you can realistically negotiate and which battles are worth fighting.

Price Escalation and Material Shortage Protections

I want to be direct: the cost of poor supply chain agreements isn't just about potential litigation. It's about operational disruption, margin compression, and competitive disadvantage.

The legal fees to sort out that mess exceeded what it would have cost to properly negotiate the agreement in the first place—and that doesn't count the business losses.

That's not a scare tactic. It's the reality of what happens when manufacturers treat contract renewals as administrative tasks instead of strategic opportunities.

Why Litigation Experience Matters in Contract Negotiation

Here's something I tell clients: the reason I can help you negotiate better contracts today is because I've spent nearly twenty years litigating bad contracts.

When I review a force majeure clause or a price escalation provision, I'm not just thinking about legal compliance. I'm thinking about the phone call I'm going to get in eighteen months when your supplier claims they can't deliver, or when you're disputing a price increase. I'm thinking about what evidence we'll need, what arguments will matter, and whether this provision will actually be enforceable.

That perspective—understanding how things go when they go bad—helps on the front end. It's the difference between contracts that sound protective and contracts that actually protect you when you need them.

Your Next Steps

If you're a manufacturing leader reading this and thinking about your own supply chain agreements, here's what I recommend:

Don't wait until contracts expire to think about renewals. The best negotiations happen when you have time to think strategically rather than responding to deadlines.

Focus on business outcomes, not just legal protection. Yes, you want enforceable contracts, but you also want agreements that facilitate good business relationships and give you operational flexibility.

Get experienced counsel involved early. Whether you work with me or another attorney who understands manufacturing and supply chain issues, bring legal counsel into the conversation before you start negotiations, not after you've already agreed to terms.

If you're dealing with contract renewals this quarter and want to discuss how to strengthen your supply chain agreements, let's schedule a conversation. I'd be happy to review your current contracts and walk through strategic options for negotiations.

You can reach me directly at Michael Best. The goal is for clients to feel comfortable picking up the phone, and a quick conversation now about your contracts can prevent expensive problems later.

Adam Witkov is a business attorney and commercial litigator at Michael Best who represents manufacturers and other businesses throughout Wisconsin. His practice combines deep experience in supply chain litigation with strategic business counseling for growing manufacturing operations. He serves as outside general counsel for manufacturers in Milwaukee, Brookfield, and throughout southeastern Wisconsin.