Fab-Line Machinery in Nashville supplies metalworking equipment (e.g., press brakes and shears) to American manufacturers. With average machine costs of nearly $150,000, GSP eliminates about $7,500 per machine imported by Fab-Line from Turkey.
When GSP expired in 2013, Fab-Line was forced to raise prices to compensate for those new import taxes. Ultimately the company paid about $350,000 in new tariffs. This hurt the company, which had to lay off one employee, and the American manufacturers that now had to pay more for Fab-Line’s equipment.
The retroactive renewal allowed Fab-Line to hire 2 new workers – a service manager and a service engineer. Yet Fab-Line President Patrick Canning says another potential expiration threatens the company again:
“If the GSP does not get signed I will raise my pricing to pay for the duties and of course that will have a negative impact on my business.”
GSP may not expire until December 31, but the decision date is much sooner for Fab-Line. According to our newest survey, Fab-Line will start placing orders for 2018 delivery in mid-August. If Congress has not renewed GSP before the August recess, Fab-Line will be forced to guess whether orders will be subject to extra taxes.