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Surging Costs Complicate Plans for New U.S. Factories
Wall Street Journal ^ | April 6, 2025 | John Keilman and Owen Tucker-Smith

Posted on 04/09/2025 6:46:14 AM PDT by karpov

Roofing-products manufacturer IKO North America has been on a factory-building spree in the U.S., with one plant completed and four more under construction. After President Trump launched a barrage of tariffs on U.S. trading partners, the math abruptly changed.

Chief Executive David Koschitzky said IKO’s just-finished factory in Texas now faces higher prices on the steel it uses to fabricate metal shingles, while the plants that are still being built need machinery that isn’t made in the U.S. The company will continue with the projects, he said, but tariffs will make them much more expensive.

“If we’re to be successful, that’s a cost that’s going to be passed on to the consumer,” Koschitzky said.

Trump’s tariff announcement threw a wrench into factory builders’ plans—and complicates a yearslong government effort to reinvigorate U.S. manufacturing. Companies are double-checking the numbers on planned factories, or halting them altogether.

Tariff-swollen building costs helped to kill a $300 million plastics recycling plant in Erie, Pa., that had been in the works for four years. International Recycling Group, helmed by CEO Mitch Hecht, said Thursday it was canceling the factory partly because new duties on material and imported machinery had created “expectations of substantially higher project development costs than anticipated.”

The company said the plant, which had been expected to generate 200 jobs, was also hampered by delays in securing a $182 million loan guarantee the federal government conditionally granted last year.

The past three years have seen an explosion of U.S. factory investment, driven in part by billions of dollars in Biden administration subsidies for manufacturers supporting the semiconductor and electric-vehicle industries as well as renewable-energy projects. Companies have also sought to shorten supply chains that became strained during the Covid-19 pandemic.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; Editorial; Foreign Affairs; US: Pennsylvania; US: Texas
KEYWORDS: aliens; checkersmaximus; concerntroll; concerntrolling; murdochrag; nevertrump; openbordersrag; tariffs; tds; trumphate
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To: karpov

“Tariffs will hurt U.S. manufacturing by driving up input costs..”

Said all the fat bodies on the first day of fat camp detox.

The American consumer has born the costs of our de industrialization for the benefit of a small elite arbitrage /financial oligarchy since the end of WWII.

Via predatory taxation and disadvantageous (to us) trade agreements, our foreign policy and economic experts enriched themselves at the expense of America’s productive classes and with them, the last best hope for the supremacy of Western Civilization.

After 60 years of WSJ Editorial Page endorsed America Last policies we find our selves with a negative foreign reserves account while unable to build warships, sew combat boots, or provide medical supplies/pharma to our sick or wounded.

Further, we have happily taught our enemies and “allies” our know how/show how, then let them steal our IP, while exploiting their pollution choked subsistence level peasantry in factories we built and trained them to use.

So, stuff it. Like Rocky training for the next big fight after laying about getting fat and slow for a few years..... it’s going to hurt for a bit.

We used to go to war singing ready to sacrifice every comfort and a good number of our young for our independence.....now the ruling pogs bitch about an extra 25% on their French Champagne and latest Chinese trinket.

MAGA or death!

But I do not feel strongly about it.


21 posted on 04/09/2025 7:18:47 AM PDT by Lowell1775
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To: USA-FRANCE
HOWEVER, this is not something that can happen overnight. It’ll take 8 to 10 years to build the factories, train people, and get everything running here.

This is a key point. This change will take at least a decade.
22 posted on 04/09/2025 7:19:18 AM PDT by TexasGunLover
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To: ProtectOurFreedom
The medicine tastes bitter, but the cure will be worth it.

I wonder if the American people will have the patience for the austerity, scarcity, and inflation of the bitter medicine.

23 posted on 04/09/2025 7:19:43 AM PDT by Drew68 (I haven’t seen the Democrats this mad since yesterday. Save some tears for tomorrow.)
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To: USA-FRANCE

A good plan today is better than a prefect plan tomorrow.

Since literally NO ONE in government was willing nor is willing bedside’s Trump to address and fix this issue, this is the battle we must fight.

There is no other option available and no one ha seven presented anything close to a workable plan as an alternative to trump’s plan.

And NO the whole idea of more studies, congress needs a bi-partisan solution, offend the world less are not a viable alternatives, those are all the things we have literally been forced to do for decades and they led to this mess.


24 posted on 04/09/2025 7:21:49 AM PDT by Skwor
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To: TexasGunLover; USA-FRANCE
How long does it take to build an auto factory?

AI: Several months to over a year

The time it takes to build an auto factory can vary significantly, with an average factory build ranging from $2,700,000 to $4,000,000 and taking several months to over a year1. Once the factory is built, it takes automakers about 18 to 35 hours to produce one mass-market vehicle, from welding to full engine assembly to painting2

25 posted on 04/09/2025 7:22:25 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: central_va
(hands central_va an /s tag)

You dropped this, man.

26 posted on 04/09/2025 7:22:45 AM PDT by Frank Drebin (And don't ever let me catch you guys in America!)
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To: central_va

WSJ-Karpov-National Review.


27 posted on 04/09/2025 7:29:56 AM PDT by OLDCU
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To: USA-FRANCE; Skwor; karpov
Since China now seems to be ending rare earths materials exports to America it looks like Ukraine’s rare earths will become more important than ever for America.

Geologists Uncover the World’s “Largest Lithium Deposit” Under American Supervolcano, Worth 413 Billion Euros
28 posted on 04/09/2025 7:32:49 AM PDT by SoConPubbie (Trump has all the right enemies, DeSantis has all the wrong friends.)
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To: karpov

There is a price to pay in to again have an economy based on fundamentally sound manufacturing vs. financial bullshit.


29 posted on 04/09/2025 7:34:20 AM PDT by bigbob (Yes. We ARE going back!)
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To: karpov

>> Trump’s tariff announcement threw a wrench into factory builders’ plans—and complicates a yearslong government effort to reinvigorate U.S. manufacturing

Yeah it does! Because it’s no longer of simply finding some cheaper foreign manufacturer of whatever widget you need.

Now you’ll need to take the harder (but worthwhile and sustainable) path of bringing manufacturing back to America where it belongs.

MAGA! And in-country manufacturing is part of “Great”.


30 posted on 04/09/2025 7:36:25 AM PDT by Nervous Tick (Hope, as a righteous product of properly aligned Faith, IS in fact a strategy.)
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To: Sirius Lee

I do skim the threads I start, but most of the responses are just name-calling of me or the source.


31 posted on 04/09/2025 7:39:43 AM PDT by karpov
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To: central_va

>> No matter what anyone does NOTHING is to be made here.

Yeah, what could go wrong??!? We’ll live off of
entertainment, financial services, asset inflation, and health care (except making drugs and medical equipment, of course).

We could ask our enslaved kids to weigh in on “what could go wrong” after a generation or two.


32 posted on 04/09/2025 7:39:55 AM PDT by Nervous Tick (Hope, as a righteous product of properly aligned Faith, IS in fact a strategy.)
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To: karpov

Gee, how could we ever solve this problem????


33 posted on 04/09/2025 7:39:56 AM PDT by bray (It's not racist to be racist against races the DNC hates.)
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To: Drew68

I rather doubt it. And the midterms will be the big tell. If things don’t look bright by spring and summer next year, the Dems will be back, impeachment, and maybe conviction. Then deep state misery forever.


34 posted on 04/09/2025 7:41:26 AM PDT by ProtectOurFreedom (Don't be a "PANICAN" or a "PANICRAT")
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To: Nervous Tick
I mean nothing. It is so bad that if the globalists could figure out away to import entire buildings and houses built with wage slave labor they'd do it.
35 posted on 04/09/2025 7:42:35 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: karpov

Because you are Engaging in Transparently Disseminating Sh;t, or TDS.


36 posted on 04/09/2025 7:43:25 AM PDT by Sirius Lee ("Never argue with a fool, onlookers may not be able to tell the difference.”)
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To: USA-FRANCE

>> It’ll take 8 to 10 years to build the factories, train people, and get everything running here.

Bullshit. The chinkychanks are throwing up factories and powerplants in months. Elon is doing that here! It’s a question of will and skill.

Of course, you’re so used to socialist Yurp, you can be forgiven for not knowing what you’re talking about.


37 posted on 04/09/2025 7:44:07 AM PDT by Nervous Tick (Hope, as a righteous product of properly aligned Faith, IS in fact a strategy.)
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To: ProtectOurFreedom
You are the devil.


38 posted on 04/09/2025 7:44:26 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: Sirius Lee

>> Transparently Disseminating Sh;t, (TDS)

Thanks for that! I learned something useful today.


39 posted on 04/09/2025 7:46:47 AM PDT by Nervous Tick (Hope, as a righteous product of properly aligned Faith, IS in fact a strategy.)
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To: HYPOCRACY

>> The WSJ is as credible as the NYT anymore.

The “news” portion of WSJ has been incredible and biased for a couple of decades now.

The opinion pages aren’t far behind... entrenched deepstate they are.

Doesn’t really matter to me because of their paywall, and damned if I’ll pay their danegeld.


40 posted on 04/09/2025 7:51:10 AM PDT by Nervous Tick (Hope, as a righteous product of properly aligned Faith, IS in fact a strategy.)
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