Casualties of War

Four Delaware-based Companies That Could Lose in the New Trade Wars

We all know that Delaware is home to some of the hardest working people in America. What you may not know is that many of our jobs are directly tied to or support jobs that are directly tied to international trade. The open market system has lowered prices and raised living standards for millions of Americans, but this new trade war is putting that advancement in jeopardy. The President has ignited trade fights with China, Canada, Mexico and the European Union. As a result, we are now a waging multi-front trade war against our largest trading partners. They are responsible for nearly 2/3 of all import business done in the United States.

When former President George W. Bush’s administration imposed a 30% tariff on steel in early 2002, approximately 200,000 American workers in the manufacturing industry lost their jobs. That was just one tariff against one product. This current administration has imposed numerous tariffs, against several products, from several countries, simultaneously. With these countries now imposing “tit-for-tat” levies and tariffs across consumer, agricultural and industrial imports, it is American companies and consumers who will suffer the most.

These policies will ruin our home-grown business’ ability to sell their products and services overseas and even make it much harder to do business in the United States. There are no winners in trade wars. They lower profits, cause workforce reductions, discourage investment and depress economic growth for every country involved. They also trigger inflation because tariffs increase the prices of imported goods. When companies cannot absorb these additional costs they are forced to pass them on to suppliers and ultimately on to customers. Even items made in this country will be affected, as many manufacturers rely on imported parts and raw materials. Our companies will either have to raise prices, slash jobs, or both in order to stay afloat.

I want to prevent this from happening again in the future. My plan when elected is to propose and push for open and fair trade deals that ensure companies that innovate can remain competitive in the global arena. Rather than protecting dying industries, we should be promoting companies that are creating tomorrow’s opportunities. Here are just four of the many companies based here in Delaware that I want to ensure have access to fair trade opportunities around the world.

W.L. Gore and Associates

You may not know this company by name, but you are probably familiar with one of their most famous products: Gore-Tex®, which is used in clothing and shoes to make them tougher and waterproof. W.L. Gore and Associates also innovated the “lattice” or “open allocation” corporate structure in which all employees hold the same title of associate. The company was featured in Malcolm Gladwell’s influential book, The Tipping Point and since 1984 has consistently made Fortune Magazine’s annual list of America’s “Top 100 Companies to Work For.” They’ve earned similar honors for their European operations. I want to ensure that this global company, founded in Newark, with over 10,000 associates around the world can continue to grow and create the kind of jobs Delaware needs to compete in the global economy.

Citizenrē

Among numerous other Chinese products, the Trump administration has targeted Chinese-made photovoltaic panels- a move that affects Wilmington-based Citizenrē. Citizenrē is a renewable energy company that rents solar energy systems to homeowners, thus helping them lower their energy costs while also lowering greenhouse gas emissions. In the U.S. manufacturing only accounts for 14% of solar jobs. The vast majority of U.S. solar jobs come from installation. The new tariffs are estimated to increase the cost of installing solar panels on American homes and business by 25–30% and have already begun to adversely affect the 34,000 independent installers, i.e. small business owners. According to the Solar Energy Industries Association, the solar tariff has already cost 8,000 construction jobs and they predict those job losses could easily reach 23,000. These are businesses that Citizenrē works with across the country. The loss of these jobs across the country will also likely result in job losses here.

ILC Dover

Based in Frederica, ILC Dover is an engineering and manufacturing company whose products touch everything from the pharmaceutical industry to HAZMAT to aerospace. As the manufacturer of the fabrics used in space suits, they have outfitted every astronaut in the Apollo Program and currently outfit the astronauts working on the International Space Station. They also make the innovative airbag landing systems that are used to land rovers on Mars and produce blimps and balloons used for scientific and commercial purposes closer to home.

In addition to affecting their ability to acquire the components and electronics used in many of their products, the trade war may also damage critical working relationships. The ill-will generated as a result of the trade war may impact the manufacturer’s ability to continue to collaborate with countries around the world on projects like the International Space Station. Projects of this manner require stable, long-term, friendly relations with partner nations in order to be effective. I want to make sure that ILC Dover can continue to be a leader in the ever-expanding space economy.

P&L Transportation

Anyone who’s ever played Monopoly® knows that railroads are an important part of a winning strategy. You may not immediately think of railroads when you think of jobs in the global economy, but railroads are an essential part of an effective global supply chain. Without our railroads moving goods to and from our ports would be far more difficult, slower and costlier. Wilmington-based P&L Transportation owns and operates several railroads in the Mid-Atlantic region that span nearly 550 miles of rail lines.

As sales decrease due to decreased demand for products, manufacturers will have to find alternative markets for the goods they produce. If they cannot, American companies will sell fewer products. This translates to lower demand for moving goods by rail and that will harm Delaware-area jobs.

The trade wars do not occur in a vacuum, they have ripple effects that leave few, if any, industries untouched. There are more 12 million workers in America whose jobs are impacted by the tariffed goods- many of them right here in Delaware. These workers, while unintended targets, still stand to lose their livelihoods. Tariffs will harm Delaware consumers and businesses without impacting the imbalances in the trade practices and policies they were intended to address. We simply cannot afford to take unmitigated risks with peoples livelihoods. The only way to win a trade war is to avoid it all together.