Case Studies
Saving American Manufacturing
In 2008, one of the nation’s largest hand truck manufacturers was facing the biggest crisis of its 62-year existence: Being forced to go out of business because the Department of Commerce granted an incredibly low tariff to an international competitor. Our crisis communications campaign was geared toward protecting the interests of the company and, to an important degree, the interests of U.S. hand truck manufacturers operating in an increasingly globalized market.
Barely three years prior, the U.S. government allowed the company and the hand truck manufacturing industry trade remedy relief for products imported from China by imposing an antidumping duty of 26.49 percent set because Commerce presumes that all companies located in China are subject to government control – the duty is otherwise known as the People’s Republic of China-Wide (PRC) rate. Commerce also grants a Chinese exporter its own rate if the company can show that it operates independently from the Chinese Government. The Chinese company falsely asserted that it was privately-owned and preliminarily had its antidumping lowered to 3.82 percent instead of the higher 26.49 percent PRC-wide rate that was appropriate for its classification.
This simple move placed Gleason and the nation’s hand truck manufacturing industry in peril. It meant Taifa could command the market with its dumping prices while being subsidized by its government and essentially push other players out of the marketplace.
Having patiently taken all of the legal and administrative steps it could possibly take to urge Commerce to reconsider its decision to no avail, the company was running out of options fast.
The company engaged Media & Communications Strategies, LLC in developing a comprehensive media, public and government relations campaign. Within weeks, the agency landed coverage in local newspapers in Illinois and Indiana, including a front page story. Local broadcast coverage followed shortly after with placements in the evening news at NBC and CBS affiliates. The team also put together a government relations plan, reaching out quickly to Congressman Souder, Senators Lugar and Bayh of Indiana and then-Senator Obama of Illinois. We persuaded them to write letters and make phone calls to Commerce communicating the urgency of the matter and what was at stake.
Pressured to act further, Commerce embarked on something it seldom did: The Department scheduled a visit to the Chinese company’s offices in China to verify the accuracy of its claims in filed documents. Stateside meanwhile, our efforts culminated with Gleason’s story being showcased on CNN’s Lou Dobbs Tonight. The timing couldn’t have been better. Instead of the 3.82 percent it had assigned the Chinese company, Commerce assigned the company a new antidumping duty rate - 383.6 percent.
Our efforts to get Commerce to focus on the ramifications of issuing such a low tariff to a Chinese government-owned company ultimately led the Department to a final decision that saved the American manufacturing, the livelihoods of hundreds of workers and the entire U.S. hand truck manufacturing industry.
