CaseLabs President: Tariffs Drove Us Out of Business

[AndrewFreedman]

California-based chassis-maker CaseLabs has closed, and its president says that tariffs against aluminum and steel played a big part.

CaseLabs President: Tariffs Drove Us Out of Business : Read more

 

[jabliese]

It is hard to imagine the price driver for a "premium build quality" manufacturer is it's raw materials. Methinks there is more of a story behind "the default of a large account."

 

[littleleo]

Wining!

 

[Integr8d]

Agreed. Don't get me wrong. My (whatever model) CL case is >awesome<. It weighs a good chunk too. But if the cost of the aluminum, to make it, going from $45 to $87 (IN A CASE THAT I PAID WELL-OVER $600 FOR) was enough to take down CL, that company wasn't doing so hot anyway. And given how long they've been around, their initial long-term assets were paid down quite a while ago (unless it's common to bank roll a metal bending machine for 3 decades). So if this was enough to tip it, their running costs were extremely poorly-managed. And to be honest, the owner is probably happy to quit wasting his/her/their time with a profitless company...

But as you said, 'more of a story'.

 

[JamesSneed]

At the prices they charge they had to be dealing with super low volumes. It's odd to blame it on tariffs when the cases sell for so much. Likely their just wasn't enough demand for $300-$700 cases in the first place.

 

[velourfog]

Such a bad scenario. I've been waiting on my case that I ordered since May. After contacting Caselabs, they aren't sure if they'll be able to fulfill it and told me to process a bank charge back. So much for my dream case.

 

[elbert]

They know it was coming plus most of their competition has to deal with same tariffs. China is the biggest exporters of cases which are facing super high costs.

 

[therickmu25]

Any articles on the millions of jobs being created right now across all industries? Or just when a bad company of 12 people goes under for a dozen reasons?

 

[Dantte]

Have to call BS, he claims it was the tariffs fault starting back in Jan, but the EU tariffs on steel and aluminum werent even be talked about till February and didnt take affect till Jun 1st. This is a poorly run company and he's trying to pass the blame!

Or maybe I'm supposed to believe that $20 increase in the raw material for a $500+ "premium" case is to blame... righttttttt, not drinking that koolaid! The material cost are a fraction of the labor, and when building "premium" custom cases, I would suspect the actual split is something like 20/80 material/labor, and tariffs dont affect the labor, so again, BS!

Maybe try moving out of one of the highest taxed, heaviest regulated states in the country and I bet you could cut your labor and overhead cost WAY more than the tariff increases in material and turn a bigger profit.

 

[Dantte]

Any articles on the millions of jobs being created right now across all industries? Or just when a bad company of 12 people goes under for a dozen reasons?

EXACTLY!!! Foxconn, the largest US economic development in DECADES, let alone the single largest technology development in US history EVER is coming to Wisconsin, is going to create 13000 direct jobs at the main plant in the first few years, and there hasnt been a single article about it. Maybe its because this was a direct result of Trump, Walker, and conservative policies; but but but a "drive-by" story of 20 jobs lost and some CEO's unfounded-claims and blaming Trump does make an article... bias much?

 

[jeremyj_83]

"EXACTLY!!! Foxconn, the largest US economic development in DECADES, let alone the single largest technology development in US history EVER is coming to Wisconsin, is going to create 13000 direct jobs at the main plant in the first few years, and there hasnt been a single article about it. Maybe its because this was a direct result of Trump, Walker, and conservative policies; but but but a "drive-by" story of 20 jobs lost and some CEO's unfounded-claims and blaming Trump does make an article... bias much?"

Dantte you should know that the plant you are talking about is already being changed in type. Walker expected a Gen 10.5 plant as that is what he was shown by Foxconn in China, however, the plans have been changed to a Gen 6 plant. That is a much smaller facility with a lot less employees. Don't forget that with 13,000 employees it was going to take 20 years to recuperate the $3 billion in incentives being given to Foxconn, however, now that number is $4.5 billion and fewer employees. That means it will take 30+ years to recuperate that money now. No this isn't dealing with Walker, Trump, etc... politics and economic policies. This deal with the company closing is becoming a common trend with the tariffs.

 

[Giroro]

Their business must not have been very strong in the first place if they couldn't survive the cost of materials fluctuating for a few months.

I propose the alternate theory: Nobody wanted to buy absurdly overpriced PC cases

 

[Dantte]

Dantte you should know that the plant you are talking about is already being changed in type. Walker expected a Gen 10.5 plant as that is what he was shown by Foxconn in China, however, the plans have been changed to a Gen 6 plant. That is a much smaller facility with a lot less employees. Don't forget that with 13,000 employees it was going to take 20 years to recuperate the $3 billion in incentives being given to Foxconn, however, now that number is $4.5 billion and fewer employees. That means it will take 30+ years to recuperate that money now. No this isn't dealing with Walker, Trump, etc... politics and economic policies. This deal with the company closing is becoming a common trend with the tariffs.

"Walker expected a Gen 10.5 plant as that is what he was shown by Foxconn in China, however, the plans have been changed to a Gen 6 plant."
No clue what you're talking about or if this is good/bad. You would think something like this would be in the news if it actually had any impact on reality, but its not!

"it was going to take 20 years to recuperate the $3 billion in incentives being given to Foxconn" WRONG, there are $0 in incentive being given to Foxconn. Its $3B in tax deferments over the course of 20 years and this is directly tied to Foxconn performance. What does that mean?
- No Foxconn = $0 in tax revenue
- Yes Foxconn = $54B over 20 years in tax revenue, but OH NO (sarcasm) its not $57B because $3B was deferred... and its only deferred if Foxconn doesnt meet the numbers. This is the DIRECT tax revenue from Foxconn itsself and doesnt include the workers income.

Lets also not forget the secondary jobs that will be created to support the 13000 at Foxconn. We'll need housing, jobs for the families, schools for the children, schools for the employees to get trained, hospitals, restaurants, gas stations, infrastructure, etc... 13000 is a city itsself, and were just talking about 1 plant. Foxconn is also building a technology center in Milwaukee and Eau Claire, more jobs and more startups!

Regardless of how it has changed since conception or you spin the numbers, its still the single biggest economic development in decades and the biggest tech development in US history EVER! But here we are writing hit-piece articles against Trump with "unnamed sources".

 

[JamesSneed]

Any articles on the millions of jobs being created right now across all industries? Or just when a bad company of 12 people goes under for a dozen reasons?

EXACTLY!!! Foxconn, the largest US economic development in DECADES, let alone the single largest technology development in US history EVER is coming to Wisconsin, is going to create 13000 direct jobs at the main plant in the first few years, and there hasnt been a single article about it. Maybe its because this was a direct result of Trump, Walker, and conservative policies; but but but a "drive-by" story of 20 jobs lost and some CEO's unfounded-claims and blaming Trump does make an article... bias much?

You know I dislike almost all of Trump's policies but I can't disagree with his position on bringing jobs to the US. Although I wish he would also apply this US first policy to the IT sector that is bleeding jobs like manufacturing was before it disappeared. You don't have to built plants over years and give up tons of tax breaks to get a lot of IT jobs back.

 

[planchero]

Yeah I call BS while I am not a fan of the Tariffs and I feel we are fighting the wrong battle with China (It should be over their theft of intellectual property). You dont operate out of the third most expensive state in the country the raw materials are such a small drop in the bucket to all the taxes and regulations in the state and blame the Tariffs for failing. Seems they are looking for someone to blame other then the top.

 

[King_V]

Regardless of how it has changed since conception or you spin the numbers, its still the single biggest economic development in decades and the biggest tech development in US history EVER! But here we are writing hit-piece articles against Trump with "unnamed sources".

This is pure fanboy-ism.

Now, do I buy CaseLabs' claim? Seems dubious to me. But you're way to eager and trying way too hard to overplay whatever little piddling benefits that Trump manages to accidentally stumble into, and completely ignore the catastrophes he's been creating.

You have to own the bad with the good, and on the balance, there's WAY too much bad.

 

[logainofhades]

I doubt it was the tariffs. It probably had more to do with CA's insane taxes. Using the tariffs is just a scapegoat.

 

[araczynski]

overspending on hookers and blow, will get you every time...

 

[g-unit1111]

I doubt it was the tariffs. It probably had more to do with CA's insane taxes. Using the tariffs is just a scapegoat.

I think most of the regulars know that I'm not the biggest Trump supporter in the world but I think I would be inclined to agree here. Something else had to be hurting Caselabs and this seems like they just used it as an excuse. I could be wrong too. I would be curious to know where their bottom line stood before this was all implemented, and maybe that was just the icing on the cake.

 

[g-unit1111]

Regardless of how it has changed since conception or you spin the numbers, its still the single biggest economic development in decades and the biggest tech development in US history EVER! But here we are writing hit-piece articles against Trump with "unnamed sources".

This wasn't a hit piece against Trump. Go to the Caselabs website, you can read their whole statement there - it says the exact thing being reported in the article.

 

[littleleo]

Any articles on the millions of jobs being created right now across all industries? Or just when a bad company of 12 people goes under for a dozen reasons?

EXACTLY!!! Foxconn, the largest US economic development in DECADES, let alone the single largest technology development in US history EVER is coming to Wisconsin, is going to create 13000 direct jobs at the main plant in the first few years, and there hasnt been a single article about it. Maybe its because this was a direct result of Trump, Walker, and conservative policies; but but but a "drive-by" story of 20 jobs lost and some CEO's unfounded-claims and blaming Trump does make an article... bias much?

So I'm guessing netting is going to be a hot selling item in Wisconsin in the future like it is in China. Still waiting on those millions and millions high paying jobs. I don't consider Walmart jobs as high paying as they don't make enough to cover healthcare, rent and food in the same week. I know right eating is so over rated it just makes fat people right, Winning with Tump and the Ruslicans!

 

[littleleo]

Regardless of how it has changed since conception or you spin the numbers, its still the single biggest economic development in decades and the biggest tech development in US history EVER! But here we are writing hit-piece articles against Trump with "unnamed sources".

This wasn't a hit piece against Trump. Go to the Caselabs website, you can read their whole statement there - it says the exact thing being reported in the article.

I'm sure it's all a lie by the Chinese to try and trick us to to not putting more tariffs on their stuff. We have all that cheap American made steel and Aluminum they can use for their cases so this makes no sense. This has to be fake news, Winning with Trump and the Ruslicans!

 

[Dantte]

Regardless of how it has changed since conception or you spin the numbers, its still the single biggest economic development in decades and the biggest tech development in US history EVER! But here we are writing hit-piece articles against Trump with "unnamed sources".

This wasn't a hit piece against Trump. Go to the Caselabs website, you can read their whole statement there - it says the exact thing being reported in the article.

This absolutely is a hit-piece! Andrew authored the article and interviewed Jim Keating "...told Tom's Hardware over email." Instead of follow standard journalism practice of verifying the statements, the article was posted here as if it was the gospel. He went as far as quoting "I can’t confirm the accuracy of it, but believe it to be true", which is no different that using the 'unnamed sources' excuse, a tell-tale sign of a hit piece.

Nvidia just just wrote an email, said they have the best graphics card, they can't confirm this, but they believe it to be true... Where's the headline: Nvidia Greatest Graphics Card Ever? Thats right, you wouldnt do that, you would request a sample, put it through testing, and verify the claim... SO WHY WASNT THAT DONE HERE?

 

[g-unit1111]

This absolutely is a hit-piece! Andrew authored the article and interviewed Jim Keating "...told Tom's Hardware over email." Instead of follow standard journalism practice of verifying the statements, the article was posted here as if it was the gospel. He went as far as quoting "I can’t confirm the accuracy of it, but believe it to be true", which is no different that using the 'unnamed sources' excuse, a tell-tale sign of a hit piece.

Nvidia just just wrote an email, said they have the best graphics card, they can't confirm this, but they believe it to be true... Where's the headline: Nvidia Greatest Graphics Card Ever? Thats right, you wouldnt do that, you would request a sample, put it through testing, and verify the claim... SO WHY WASNT THAT DONE HERE?

You must have missed this part:

Tom's Hardware reached out to the White House for comment on tariff effects on US companies, and we'll update this story if we hear back.

But yeah it's all bad journalism and you will most likely dismiss future comments as such.

 

[Dantte]

This absolutely is a hit-piece! Andrew authored the article and interviewed Jim Keating "...told Tom's Hardware over email." Instead of follow standard journalism practice of verifying the statements, the article was posted here as if it was the gospel. He went as far as quoting "I can’t confirm the accuracy of it, but believe it to be true", which is no different that using the 'unnamed sources' excuse, a tell-tale sign of a hit piece.

Nvidia just just wrote an email, said they have the best graphics card, they can't confirm this, but they believe it to be true... Where's the headline: Nvidia Greatest Graphics Card Ever? Thats right, you wouldnt do that, you would request a sample, put it through testing, and verify the claim... SO WHY WASNT THAT DONE HERE?

You must have missed this part:

Tom's Hardware reached out to the White House for comment on tariff effects on US companies, and we'll update this story if we hear back.

But yeah it's all bad journalism and you will most likely dismiss future comments as such.

Why would the White House have information to verify Keating's statement? All the White House could possibly comment on would be the existence of the Tariffs, information we already know and have. Is dont even register as an attempt! You need to continue reaching out to Keating and asking for proof, not just his word, that this is a tariff issue. Look at the comments here, not a single one believes the headline or Keating... but thats what you lead with? This article is damning!