MANITOWOC (NBC 26) — Wisconsin Aluminum Foundry in Manitowoc feels economic pressure as 50% tariffs on imported aluminum raise costs and decrease demand.
"We buy aluminum and we buy sand and then humans transform that simple elements into something complex," said Sachin Shivaram, CEO of Wisconsin Aluminum Foundry.
But the century-old manufacturing cornerstone is facing challenges. The 50% tariffs on imported aluminum are raising costs and creating a decrease in demand for the company's products.
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"It has affected jobs already...our facilities in Iowa and Indiana, we laid off probably about 150 to 200 people just because the demand is down," Shivaram said.
The foundry, which relies on imported aluminum, uses tremendous amounts of energy to transform the metal. Shivaram explains that aluminum is typically cheaper when imported from other countries.
"Primary aluminum is something that's always going to be imported into the United States, no matter what kind of tariffs we put on whatever it is, and so by the tariff, what they've done is increased the cost of a key input material for us," Shivaram said.
This cost increase puts American companies like Wisconsin Aluminum Foundry at a disadvantage and is slowing their hiring efforts.
"First shift is pretty full, second and third shift we could hire 60-70 percent more people," Shivaram said.
Despite these challenges, there's pride in the work being done at the foundry and what these jobs mean for families in the community.
"An employee who immigrated from Mexico years ago built a small family here over 25 years, his daughter just graduated from UW-Madison, he vacations in Kentucky to see music festivals, and these are the types of stories a great job can facilitate," Shivaram said.
In Manitowoc, a community built on manufacturing, every job makes a significant impact on the local economy.
"The types of jobs that we are creating are great jobs. These are jobs that the American dream is built on," Shivaram said.
Wisconsin's Sixth Congressional District, which includes Manitowoc, is among the most manufacturing-intensive districts in the entire country, meaning much of the local economy relies on this industry.
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