LIZ: 15 MINUTES AFTER THE HOUR,
CHECK OUT THESE ROBOTS AT A
COMPANY OUT OF MICHIGAN.
THEIR ROBOTICS AND HIGH-TECH
TOOLS ARE REVERED FROM BLUE CHIP
NAMES, EVERYTHING FROM BOEING TO
TESLA, GENERAL ELECTRIC, JOHN
DEERE, UNITED TECHNOLOGIES, SO
WHAT'S THE PROBLEM?
WELL, DESPITE BRINGING IN ABOUT
100 MILLION DOLLARS IN ANNUAL
SALES, THE COMPANY NOW IS FACED
WITH CRIPPLING STEEL TARIFFS AND
MUST MAKE SOME DIFFICULT
CHOICES.
CUT BACK OR HIKE PRICES?
ANDY STORM IS THE CEO AND
PRESIDENT.
HE'S HERE ON A FOX BUSINESS
EXCLUSIVE.
WELCOME.
THANK YOU FOR JOINING US.
>> THANK YOU FOR HAVING ME.
LIZ: YOU HAVE THIS PLATINUM
CUSTOMER LIST AND A REALLY SOLID
ECONOMY IN WHICH TO DO BUSINESS.
TELL US THE BIGGEST PROBLEM YOU
ARE FACING RIGHT NOW.
>> SURE, WE HAVE BEEN AROUND FOR
60 PLUS YEARS SERVING AMERICAN
MANUFACTURERS, GLOBAL
MANUFACTURERS AND A CORE PART OF
OUR BUSINESS, A CORE PART OF OUR
COMPANY IS SECURE TOOLING THAT
HELPS HEAVY MANUFACTURERS
ASSEMBLE AND BUILD THE PRODUCTS
THEY SELL TO THEIR END
CUSTOMERS.
A SIGNIFICANT AMOUNT OF OUR
BUILDING MATERIAL IS MADE UP OF
RAW MATERIAL, STEEL, ALUMINIUM,
METALS, AND WITH THE TARIFFS
THAT HAVE RECENTLY BEEN PLACED
ON A LOT OF THE STEEL IN
PARTICULAR THAT'S GETTING
IMPORTED FROM CHINA, IT PUTS A
LOT OF PRESSURE NOT JUST ON
ECKHART BUT A LOT OF THE
COMPANIES THAT WE COMPETE
AGAINST, IN ADDITION TO OUR
CUSTOMERS.
LIZ: I WOULD IMAGINE.
YOU KNOW, UNDER THE BEST OF
CIRCUMSTANCES, BUSINESSES HAVE
TO BEND OR ELSE THEY WILL BREAK.
HOW HAVE YOU HAD TO BEND WITH
THESE TARIFFS FACING YOU?
>> ONE OF THE BIG THINGS THAT WE
FOCUSED ON IS PRODUCTIVITY GAINS
IN OUR INTERNAL ORGANIZATION.
WE LOOK INTERNALLY AT THE
PROCESSES AND SYSTEMS THAT ALLOW
US TO BUILD THE PRODUCTS WE SELL
TO OUR CUSTOMERS.
WE DON'T HAVE LONG-TERM FIX
CONTRACTS WHERE WE HAVE VOLUMES
THAT EXTEND OUT FIVE TO SEVEN
YEARS.
OUR PURCHASE ORDERS AND PROJECTS
ARE MUCH SHORTER IN DURATION AND
IT FORCES OUR TEAM TO BE
CREATIVE AND REALLY PUTS A LOT
OF PRESSURE ON OUR LEADERSHIP
TEAM TO LOOK FOR WAYS TO IMPROVE
THE EFFICIENCY OF THE PROCESSES
THAT WE HAVE AS WELL AS THE
QUALITY THAT WE BUILD INTO OUR
PRODUCTS TO ELIMINATE WASTE.
I THINK MOST SMALL MANUFACTURERS
THAT COMPETE IN OUR SPACE
RECOGNIZE THAT THE INDUSTRY AS A
WHOLE, WHETHER IT BE TARIFFS,
WHETHER IT BE LABOR SHORTAGES OR
LABOR STRIFE WITH RESPECT TO
UNIONS, THERE ARE CHALLENGES
THAT WE FACE EVERY DAY, AND MOST
OF OUR CUSTOMERS ARE NOT WILLING
TO ALLOW US TO PASS PRICE
INCREASES ON TO THEM, SO WE NEED
TO BE CREATIVE ABOUT HOW WE
THRIVE AND SURVIVE IN THIS SPACE
THAT WE COMPETE IN.
LIZ: AT WHAT POINT, THOUGH, WILL
YOU HAVE TO RAISE YOUR PRICES?
I SAY THIS KNOWING THAT YOU
DON'T BREAK OUT YOUR COSTS ON
HOW MUCH YOU PAY FOR STEEL, BUT
COULD YOU QUALIFY IT FOR US,
VERBALLY, SORT OF COMPARE IT TO
THE PRICES YOU WERE PAYING
BEFORE THE PRESIDENT ANNOUNCED
THESE TARIFFS IN FEBRUARY?
>> YEAH, OUR PRICES HAVE GONE UP
SIGNIFICANTLY, SIGNIFICANTLY,
YOU KNOW, DOUBLE DIGITS, DOUBLE
DIGIT INCREASES YEAR OVER YEAR.
THAT DOES PUT ENORMOUS AMOUNT OF
PRESSURE ON OUR COMPANY, BUT
SPEAKING TO A LOT OF THE FOLKS
THAT WE WORK WITH DAY-TO-DAY,
SMALL MANUFACTURERS, UP TO VERY
LARGE MULTINATIONAL GLOBAL
CORPORATIONS, PEOPLE IN GENERAL
THAT LIVE IN MANUFACTURING
REALLY APPRECIATE THE INTENT OF
WHAT IS HAPPENING WITH REGARDS
TO TRYING TO ESTABLISH A
POLICY -- GET POLICYMAKERS TO
FOCUS ON HOW WE AS A NATION, HOW
AMERICA CAN START TO ESTABLISH
AN INDUSTRIAL POLICY THAT
SUPPORTS MANUFACTURERS.
BUSINESSES WHO TRULY WANT TO
COMPETE IN NORTH AMERICA AND IN
THE UNITED STATES, IN
PARTICULAR, AND EMPLOY PEOPLE IN
THE SMALL TOWNS HERE IN THE
MIDWEST AND BEYOND, WHO HAVE
GREAT JOBS WITH GREAT STANDARDS
OF LIVING AND TRULY ARE BRINGING
AN UNPRECEDENTED LEVEL OF
INNOVATION TO MARKET.
LIZ: I GET THAT.
AND I THINK THAT WE ABSOLUTELY
NEED A BIPARTISAN EFFORT TO TALK
ABOUT THAT.
THE PRESIDENT IS TRYING TO DO
THINGS EVENTUALLY THAT HE
BELIEVES WILL HELP U.S.
MANUFACTURING, BUT I'M
INTERESTED TO KNOW HOW MUCH
LONGER YOU CAN HOLD OUT KNOWING
THESE PRICES HAVE CERTAINLY GONE
UP.
ALTHOUGH I DID SEE THAT THE
COUNCIL ON FOREIGN RELATIONS HAS
SAID THAT U.S. STEEL
MANUFACTURERS ARE STARTING TO
HURT AS WELL.
ARE YOU HEARING ANY ANECDOTAL
EVIDENCE OF THAT FROM YOUR
SUPPLIERS?
>> ABSOLUTELY.
WE SPEAK DAILY WITH ALL OF OUR
SUPPLIERS, AND IN PARTICULAR THE
STEEL SUPPLIERS THAT WE BUY OUR
STEEL FROM, WHO ULTIMATELY GET
THEIR STEEL FROM THE MILLS,
THERE'S NO QUESTION THEY ARE
FEELING HEAT AND PRESSURE FROM
THE TARIFFS.
BUT AGAIN, I THINK WHAT EVERYONE
CONTINUES, THE FOLLOW-UP THAT
OCCURS AFTER WE START TALKING
ABOUT TARIFFS IS EVERYONE WANTS
TO BE PART OF -- MANUFACTURERS
WANT TO BE PART OF WORKING WITH
POLICYMAKERS ON BOTH SIDES OF
THE AISLE TO HELP ESTABLISH
POLICY THAT SUPPORTS
MANUFACTURING IN OUR COUNTRY.
A HUGE FOCUS HAS BEEN ON TARIFFS
AND THE IMPACT OF TARIFFS ON
MANUFACTURERS, LIKE ECKHART, BUT
THERE'S NOT A LOT OF DIALOGUE,
AT LEAST NONE THAT YOU SEE
DAY-TO-DAY IN THE PRESS, AROUND
WHY IS CHINA STEEL HAVING SUCH A
PRONOUNCED IMPACT ON AMERICAN
MANUFACTURING COMPANIES?
THE REASON IT'S HAVING A
PRONOUNCED IMPACT FOR DECADES
OUR COUNTRY HAS FAILED ON BOTH
SIDES OF THE POLITICAL AISLE,
WHETHER YOU ARE REPUBLICAN OR
DEMOCRAT TO ESTABLISH A NATIONAL
POLICY THAT SUPPORTS AMERICAN
MANUFACTURERS, LIKE ECKHART.
AND WE ALL WANT IT.
WE ALL BELIEVE IN AMERICAN
MANUFACTURING.
WE ARE ALL WILLING TO COMPETE
AND CONTINUE TO COMPETE TO EARN
EVERY DOLLAR OF REVENUE THAT
COMES INTO OUR COMPANY.
WE'RE GOING TO GO DOWN SLUGGING,
LIZ.
LIZ: ANDREW, DON'T GO DOWN.
WE'RE WITH YOU GUYS.
I HOPE THAT THE ADMINISTRATION
SOMEHOW INVITES YOU EITHER SIDE
OF THE AISLE TO COME TO D.C. AND
STATE YOUR CASE.