Services

August 22, 2018

Tariffs On Chinese Steel Cause USA Based Safe Manufacturer To Close Shop And Move To Mexico

Stack-On Safes, a Chicago based manufacturer of high quality safe and storage solutions, that has been offered through locksmiths for many years, has decided to close it's two local manufacturing facilities. The closures will eliminate almost 150 local jobs and move the companies manufacturing operations to Mexico.

The decision has not come lightly for Las Vegas based parent company Alpha Guardian, who believe that the recent introduction of tariffs on Chinese metals is a large contributing factor to the decision.

The tariffs announced in June, are making local USA based metal products manufacturers at odds with the federal government, who are attempting to bring back local metal manufacturing to this country.

Unfortunately, local based metals manufacturers cannot produce the quantities of metals, at sufficient cost points, to enable companies like Stack-On to continue to be competitive in the marketplace.


 Stack-On produce some innovative and high quality safe and storage products that are recommended and demanded by swathes of local locksmith companies, sporting goods suppliers, gun clubs, among others in the wider marketplace.

Critical to their business model is the cost of raw materials, chiefly steel. The recent introduction of 25% tariffs has turned their business model from a profitable venture into a loss.

Whatever your chosen political affiliation, it is important to understand the pros and cons of tariff applications and be aware that many countries can be economically affected by ignorant policies that cause upheaval to businesses, communities, employment and consumers.

(source...)


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