Pittsburgh Post-Gazette

Making duct pipes for Canada. Sending automotive jobs to Mexico.

Pittsburgh has seen both sides of NAFTA

- By Daniel Moore

Pittsburgh Post-Gazette

Ray Yeager swelled with pride as he strolled through his company’s 250,000-square-foot manufactur­ing plant in Monongahel­a.

Machines rhythmical­ly pounded sheet metal into complex shapes and various sizes; conveyors dropped finished pieces into cardboard boxes; automatic mechanical arms placed boxes onto wooden pallets. A legion of workers drove forklifts to take the pallets out for shipment.

Parts made here are used in heating, ventilatio­n and air conditioni­ng systems in the United States, Canada and Mexico.

It’s the type of operation that remains a distant memory for other workers in the Pittsburgh region. Kenneth Love worked for 22 years at a General Motors metal stamping plant in West Mifflin, which shuttered in 2008 after more than five decades.

“They promised us a future for our grandchild­ren to work there,” said Mr. Love, who retired just before the closure and became a minister and labor union activist. “It didn’t last 10 years.”

The two clashing narratives largely hinge on one plot twist that has had profound effects for American business and labor: the North American Free Trade Agreement.

It’s a fierce debate that has been revived and electrifie­d by President Donald Trump’s decision this year to renegotiat­e the 1994 trade pact, which opened up the U.S. to free trade with Canada and Mexico.

As the three countries attempt to hammer out a new deal in secret, businesses and labor groups in Pittsburgh are on the edge of their seats. The unpredicta­bility of what the Trump administra­tion will propose — ranging from leaving controvers­ial provisions intact to assessing tariffs on imports to pulling out of the trade pact altogether — seems to have all sides prepared for the worst in vastly different ways.

While labor groups generally want the agreement scaled back or gone, manufactur­ers fear losing establishe­d business partners.

NAFTA opened up roughly $3 million in annual sales for Mr. Yeager’s DMI Companies, a Charleroi-based manufactur­er of products used in HVAC systems for commercial buildings like hospitals, schools and apartment complexes.

Employing about 450 workers, the company exports directly to Canada and sells to a supplier in Texas that ships DMI materials for use in Mexico’s buildings.

“I’m a big believer in free trade,” Mr. Yeager said. He worries that if the U.S. were to put strict tariffs on imports of, say, Canadian softwood lumber, Canada could impose retaliator­y tariffs on his products.

“Then it becomes more of a political issue than an economic debate,” he said. “If there are no tariffs or quotas, then it’s supply and demand, and the most efficient manufactur­ers are going to survive.”

The U.S. currently has 14 free trade agreements in effect with

 ??  ?? Travis Sawicky, left, and Dandre Alford of DMI Companies, make duct pipes at the Charleroi headquarte­rs of DMI Companies, a manufactur­er of HVAC and mechanical systems for commercial buildings. The company’s parts are used in the U.S. Mexico and Canada.
Travis Sawicky, left, and Dandre Alford of DMI Companies, make duct pipes at the Charleroi headquarte­rs of DMI Companies, a manufactur­er of HVAC and mechanical systems for commercial buildings. The company’s parts are used in the U.S. Mexico and Canada.

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