Steel tariffs drive up ice rink construction costs for American customers of Winnipeg metal plant
Hunter Wire is the main supplier of customized steel-wire product needed to build artificial arenas
A Winnipeg-based metal plant says U.S. tariffs on steel and aluminum will hurt its American customers who build artificial ice rinks — casting uncertainty over the future of contracts with the Canadian company at a time when the business is expanding.
"Canada has a particular expertise in ice rink construction. A lot of the major contractors are from here.… There's all those products going south of the border that are going to be going to be tariffed," said Rick Koss, who is the former owner of Hunter Wire and still works with the family business in a transitional capacity.
Among its products are ice rink pipe chairs — a steel-wire structure used in the construction of rinks that hold the rebar installed in an arena's floor and the refrigeration pipe used to cool the ice.
"Somebody's paying the tariff on it. In this case, it's our customer," Koss said.
The company began manufacturing the pipe chairs in the early 1960s, before improving the original design and patenting it.
Hunter Wire is now the main supplier of the product, Koss said, supplying anywhere from 150 to 200 rinks in North America every year, including professional facilities.
"Any NHL rink, we did it," said Koss. "You don't see it, but the product that's in that project is ours."
About 30 per cent of the rink chairs are exported to the U.S. Under the Canada-United States-Mexico (CUSMA) trade agreement, the product is exempted from tariffs.
But as of Wednesday, a 25 per cent levy will be applied to any of the rink chairs going to the U.S., after President Donald Trump imposed punishing tariffs on Canadian steel and aluminum.
Customers "pretty much have to bite the bullet and pay the increased price," said Koss.
'Canada has to stand strong'
Hunter Wire's ice rink pipe chairs are a relatively "sole source item" for rink construction, manufactured with specialized machinery. It would take a new business at least $1 million in investments to get into the industry, said Koss.
"It's not a big enough marketplace for 10 competitors. It's just not worth it," he said. "We're a little sheltered that way."
As well, pipe sizes and their placement on the concrete slabs vary from one arena to the next, he said.
"If there was only one type, somebody would be producing it in China and shipping it over … but every rink is unique, every engineer is unique."
But with American customers assuming the added cost from the tariffs, there is uncertainty about whether upcoming orders will be put on hold or cancelled.
"[Businesses] really don't know what they're going to do, how they're going to handle it," said Koss. "What are they explaining to their customers?"
No orders have been cancelled yet, as most of them are already well into the process, but the risk produces anxiety — especially as the business tries to expand to meet the growing demand for steel products.
"We've got commitments.… We have leases on equipment, we've paid for equipment expanding the building," Koss said.
"You deal with it as best as you can, and if at all it goes bad, then we could be one of those statistics."
Hunter Wire has been through a receivership before, he said.
"It wasn't big fun. Certainly not looking forward to doing it again."
WATCH | Manitoba wire business says U.S. customers have few options to avoid tariffs:
While Koss said Canada's response to the U.S. tariffs has been "surprisingly good," he would like Manitoba to take action similar to Ontario's decision to surcharge a 25 per cent levy on electricity exports bounded to the U.S. — a move Premier Doug Ford suspended Tuesday after speaking with U.S. Secretary of Commerce Howard Lutnick.
"Canada has to stand strong, stay strong and push back, at least to the degree that the U.S. has started this trade war," said Koss.
During Wednesday's question period at the Manitoba Legislature, Minister of Business, Trade and Job Creation Jamie Moses said the NDP government is working with Manitoba businesses that export steel and aluminum, including in Selkirk, where more than 70 per cent of the steel produced is shipped to the United States
But Richard Perchotte, the Progressive Conservative MLA for Selkirk, said the province still has no plan to help workers in the steel and aluminum industry, which provides employment for 800 people in his constituency.
"Failing to plan is planning to fail," he said. "Steel and aluminum companies in Manitoba need a plan.… Tariffs on Canadian steel and aluminum imports into the U.S. will be devastating to Manitoba's economy."
With files from Alana Cole