Thompson Traders is a family business founded by the Thompson Family. The company aims to provide hand-crafted, luxury sinks and tubs at affordable prices, and GSP is vital to meeting that goal.
After 7 years of trials and tribulations, the start-up company reached break-even in 2013 and had grown to 20 employees. Then Congress allowed GSP to expire. As Thompson Traders’ President Fred Starr reported in January 2015:
“Due to our financial position and our inability to pass this charge onto our customers, we had to slow down growth, including hiring. We would be a different company today without this totally unanticipated tariff. We’ve reduced our payroll by eight people, a 40% reduction and will not be adding people, until we have a better government environment, including the renewing of GSP.”
Ultimately, Thompson Traders paid $220,000 in higher taxes during the two-year GSP expiration.
With GSP reinstated and tariffs refunded, the company reinvested all of the refunds back into the business. The company initiated a major new product line in a new market in 2015. Thompson Traders rolled out stocking programs with three of its biggest customers and initiated a program to try to manufacture in the United States.
Today, Thompson Traders has 25 employees – more than before GSP expired in 2013 (and double the 12-employee low hit during GSP expiration). Growing sales meant that GSP saved the company nearly as much ($180,000) in the first year of renewal and it did in the two years of expiration ($220,000).
Thompson Traders is just one of the GSP importers sharing how GSP allows its businesses and workers to thrive on our Company Profiles page.