Warren business hurt by Chinese imports
WARREN, Ohio - Local companies making steel pipe are hailing a recent International Trade Commission decision to levy tariffs on cheaper Chinese made pipe.
But the owner of one Warren company says that decision isn't helping him or his employees.
For about 15 years Backyard Buddy has been producing vehicle lifts for car collectors and enthusiasts. At first business was great. Backyard Buddy CEO, Larry Gross, said, "We had the market. We were growing, growing, growing, growing, growing until the Chinese showed up on the scene."
Larry Gross said the Chinese imports started about 10 years ago. He said because the Chinese pay so little for labor and have no environmental regulations they can sell their lifts for less than he pays for his raw material.
Backyard Buddy's sales have dropped from as many as 4,500 lifts a year to around 500 and their workforce is nearly half down to 21.
Things have gotten so bad Gross is now selling a Chinese built lift. He said it's a move he hated to make.
It's a sad story, but not a unique one. Valley Congressman Tim Ryan said, "We've got globalization run amuck." But Ryan said there is hope on the horizon. President Obama put a tariff on imported tires and now there will be a tariff on Chinese Steel. He said, "The important thing is there's momentum towards putting tariffs on Chinese goods and the fear of doing it is gone now."
Gross is hoping the next tariff will be on lifts imported from China. He's confident that's what it will take to help restore his business.