Capitol News

In a recent interview with WBUR, Gabe Modert, owner of Industrial Service and Design in Williamston, Michigan, discussed the significant impact that tariffs have had on his small manufacturing business. Modert stated, “It’s been a big reduction in the work that we would’ve normally obtained or at least had an opportunity to bid on. Easily to the tune of a million dollars in lost opportunities.”

Modert explained that two of his largest customers, who manufacture vehicles similar to Penske trucks, have cut their planned production by 50% over the next two years. He attributed much of this reduction to import duties and tariffs, as well as general uncertainty in the industry. “One of these manufacturers actually have severely cut their planned production over the next couple years. By 50%. A lot of that was directly from import, duties, tariffs on parts, but then just general uncertainty,” he said.

He added, “They were planning on building 20 trucks a day. They were planning on building 10 trucks a day now. So what that means for us as machine builders is that it’s been a big reduction in the work that we would’ve normally obtained or at least had an opportunity to bid on.Easily to the tune of a million dollars in lost opportunities.”

Modert also described the broader impact on his business: “It’s been a ghost town for us. We’ve had to make the decision to venture into some other things to pivot to help support us as we wait this out, but we’ve branched into doing some contract machining, some other assembly stuff and we’re looking for other opportunities as well.”

He noted the challenges posed by policy uncertainty, saying, “Because I just have no idea how long this is going to last. It is the wishy washiness, right? There is no defined plan. Anything that’s said has like literally changed the next day. So if it was a one shot guaranteed, hey, this is what the tariff is, then okay, fine, we can plan and work around that. But when it’s a constant moving target, how do you deal with that? It’s impossible without any sort of steady policy making, and that’s not what we’re getting from this administration.”

Michigan Democratic Party spokesperson Joey Hannum commented on the situation: “Mike Rogers supported these reckless tariffs, and now Michigan manufacturers are suffering the consequences: billions in losses, thousands of jobs at risk, and small businesses watching their opportunities disappear. While Rogers mocks Michiganders’ concerns, small business owners are losing millions-of-dollars worth of work and wondering how long they can survive this chaos.”

Recent data show that Michigan ranks third among states most affected by tariffs supported by Senate candidate Mike Rogers. Major automakers such as Ford, General Motors, and Stellantis have reported significant financial losses due to these tariffs, including Ford facing a $2 billion impact and General Motors experiencing a $1.1 billion hit in the second quarter alone. Stellantis is expected to incur a $1.7 billion loss this year. The United Auto Workers (UAW) union has warned that profit-sharing checks could decrease by thousands of dollars for its members. Additionally, Detroit lost a $50 million factory and 325 manufacturing jobs as a result of these policies.

The ongoing uncertainty and financial losses are prompting businesses like Industrial Service and Design to seek alternative work as they attempt to weather current economic conditions.