Tariffs impacts on manufacturing industry in Central Valley

FRESNO COUNTY, Calif. (KFSN) -- Following the 90-day pause on some sweeping global tariffs and the ongoing trade war with China, the Central Valley's manufacturing industry is already feeling the impacts just one week later.

On Tuesday, Mario Persicone gave Action News an inside look at PNM's manufacturing facility in Fresno.

Skilled employees were busy using heavy machinery to make metal parts for an array of industries.

Most are made of aluminum.

"We've seen some aluminum increase per pound that's gone up pretty minimal. So far, we don't know what the future is going to bring," said Lance Hastings, president and CEO of the California Manufacturers and Technology Association.

"We're kind of all waiting to see, but we're countering it in other ways."

Hastings forsees the price of aluminum continuing to rise with the Trump Administration's tariff policy.

"Future pricing of steel and aluminum is likely going to go up by half or 100%," said Hastings.

Like other manufacturers, Persicone has to get creative with his company, recycling his aluminum to keep prices low for customers.

With 47 employees and 33 machines, the use of robots has amplified the PNM's production in the last decade.

Persicone says the new technology hasn't minimized his workforce.

In fact, he's currently looking to hire to meet the increased demand for his products.

"I think in the Central Valley, we're saying tariffs, it's been inconsistent, but we're seeing opportunities like from the Bay Area companies that typically do work overseas. We are trying to get opportunities to quote those jobs, so it's bringing those jobs that are in Asia and China, Mexico, starting to come back to the US," said Persicone.

Hastings calls the tariffs disruptive, only adding to the uncertainty that looms over the industry as a whole, especially with the ongoing trade war with China.

"If there's something that's only made in China, only sourced in China, it's going to be quite difficult to magically find that item somewhere else in the world because the tariffs are being applied worldwide," said Hastings. "It's really going to be a challenging period of time for the next 90 days."

The Betts Company is the oldest manufacturer in all of California, producing springs and other parts right here in the Valley.

Mike Betts says his family's company has already shifted to buying their raw metals elsewhere.

"We are positioned, literally positioned, to be the beginning of the US economy, and we continue to do that. It just may be challenging here in the next 60 days, 90 days," Hastings said.

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