On the heels of a deal struck between Carrier and President-elect Donald Trump, another company is contemplating a return to the U.S. Trans-Lux, which manufactures LCD and LED displays, says returning its manufacturing to the U.S. makes sense.
"It makes economic sense," Trans-Lux President and CEO J.M. Allain said, reports CNN.
Trans-Lux has based some of its production in Shenzhen, China, for nearly two decades. But China’s own economic growth has changed Trans-Lux’s equation.
The company has about 60 percent of its manufacturing in Des Moines, Iowa, and may shift more from China to a plant in St. Louis.
"Compared to 1997, labor costs are much higher, shipping costs are monstrous and it's very hard to find a new facility to expand our production," Allain said. "Earlier this year, we didn't think Donald Trump would win. But we closely watched his campaign and listened to his protectionist rhetoric. His win forced us to reevaluate our plans in China."
Trump hyped up this rhetoric during a so-called “Thank You” rally in Fayetteville, North Carolina, on Dec. 6, reports Business Insider.
Discussing trade deals, Trump vowed to "defeat the enemy on jobs."
"And we have to look at it almost as a war, because that's what's happened to us," he said. "That's what's happened to our workers."
In May, Trump mocked the term “trade war.”
“These dummies say, ‘Oh, that’s a trade war.’ Trade war? We’re losing $500 billion in trade with China,” Trump said at the time. “Who the hell cares if there’s a trade war?”
But during his Fayetteville appearance, Trump touted his deal with Carrier, and doubled-down on his trade policy.
The U.S. is "living through the greatest jobs theft in the history of the world,” the president-elect said. "There's never been a jobs theft like what's happened to this country ... And we stopped some of it, a little bit, because we started, we just started."