The House Ways and Means Committee is currently holding a hearing on the trade agenda, so it seems appropriate to highlight survey responses from companies located in Ways and Means members’ districts. You can see previous survey responses here, here, and here (and answer the survey yourself here). We’ll start with an easy one, as we profiled them the other day…
Pacific Paper Export in Seattle, Washington is a small business that imports sauces and chutneys from Pakistan. Sales of products that needed to be priced higher fell and the company was unable to expand warehouse operations as planned due to lower import volumes. The company believes lower prices associated with a reinstated GSP would lead to a 30 percent increase in imports and allow it to bring on new employees. (Represented by Congressman Jim McDermott (WA-7), an original cosponsor of the GSP renewal legislation. Pacific Paper Export is currently one of nine GSP supporter list companies in the district.)
Scrimco, Inc. in Fresno, California is a small business with 15 employees that imports polyester film. Ultimately these products end up in flexible air ducts manufactured in the United States. The company has paid more than $100,000 in import duties. The need to take a ‘wait and see’ attitude has prevented Scrimco from investing in new production equipment to improve efficiencies. The company believes GSP renewal will allow it to hire new workers and make the investments necessary to improve its domestic manufacturing capabilities. (Represented by Congressman Devin Nunes (CA-22). Scrimco is currently one of two GSP supporter list companies in the district.)
Pegasus Imports in Santa Rosa, California is a small business that imports jewelry beads and handicrafts from India and Turkey. The three-person company has paid $60,000 in import duties since GSP expired. The proposed legislation would allow Pegasus to hire two part-time workers and give raises to its current employees. The company also plans to invest in new equipment, such as a 3D printer and software, that will allow it to model new items and hopefully increase future sales. (Represented by Congressman Mike Thompson (CA-5). Pegasus is currently the only GSP supporter list company in the district.)
Engineered Components Co. in Elgin, Illinois is a small business that imports bolts and screws from Thailand. The company has paid $30,000 in tariffs on these products, which are used by American trailer manufacturers. Because Engineered Components has locked-in prices with its customers, it has no choice but to take a hit to its profits. The company believes GSP renewal will allow it to increase import volumes and grow the business. (Represented by Congressman Peter Roskam (IL-6). Engineered Components Co. is currently one of five GSP supporter list companies in the district.)
dZi Inc. in Easthampton, Massachusetts is a small business with 10 employees that imports artisan jewelry and handicrafts from Nepal and India. The company has paid $30,000 in import duties since GSP expired, which as had a number of effects: the company increased the deductible limit in the health program from $500 to $2,000; it postponed spending $15,000 on outside consulting firms for upgrading the e-commerce program, and saw a “notable reduction in orders” after raising prices. If GSP is renewed retroactively, the company could afford to hire a new marketing person, lower the health care deductible, and move ahead with its spending plans. (Represented by Congressman Richard Neal (MA-1). dZi is currently one of two GSP supporter list companies in the district.)
