In what might be considered the “Trump border tax” effect, Stanley Black & Decker, one of the best-known toolmakers in the world, said Thursday that it would move more of its manufacturing back to the U.S. from overseas.
Stanley Black & Decker CEO James Loree said they would be constructing a new factory at a cost of $35 million dollars.
The CEO said to his investors during a conference call, “Expanding American manufacturing makes ‘business sense’ amid ‘pervasive’ uncertainty regarding the future of U.S. trade with China and Mexico.”
Loree didn’t say anything specific about President-elect Donald Trump as he spoke to his investors but did say that the move has the side benefit of protecting his company from the possible effects of the president-elect’s threatened border tax, a tariff on imports.
Loree stated, “It’s going to be advisable to have more manufacturing in the U.S.”
Stanley Black & Decker operates 29 factories in the U.S. but the company has not clarified the number of jobs this new factory will create, nor where it will be built.
The company presently employs appx. 3,000 people in U.S. manufacturing jobs.
It is also in the process of purchasing the Sears Craftsman tool branch for around $900 million.
CEO James Loree said this to his investors regarding the Craftsman acquisition, “About a half century ago, the Craftsman brand was primarily made in America. Today it’s largely made overseas. We believe this is an excellent opportunity to re-Americanize and revitalize this legendary brand.”
Loree also stated, “In addition to the threat of trade policies that could damage imports, manufacturing products in the U.S. to sell to American consumers reduces logistics and distribution costs and lowers the company’s environmental footprint.”
Loree concluded, “It makes good business sense for us.”
H/T: USA Today
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