Radio Stone Update

China Section 301 Tariffs Upheld; Quartz Manfacturers Call for Education, Govt. Oversight

April 10, 2023 K. Schipper Season 3 Episode 20
Radio Stone Update
China Section 301 Tariffs Upheld; Quartz Manfacturers Call for Education, Govt. Oversight
Show Notes Transcript Chapter Markers

The 25% Section 301 tariffs on Chinese exports to the United States, including those on hard surfaces, will remain. Major quartz-surface manufacturers address the silicosis issue, and new facilities open for MSI and Arizona Tile.

0:00 Intro
0:32 China Section 301 Tariffs Upheld
2:47 Quartz Manf. Group Speaks on Silicosis
4:32 MSI, Arizona Tile Open New Facilities
7:05 A Word from Quantra
8:18 Natural Stone Institute Awards Program Seeks Entries
10:04 BB Industries Acquires Innovative Tool Solutions 
11:04 Cambria Coming to StonExpo
12:13 McArver New Marketing Director at IMS USA
12:42 ISFA's Maxwell a Coverings Rock Star
13:36 Outro

Radio Stone Update is presented on the first and third Wednesdays every month at 9 a.m. everywhere on Earth with the latest news and insights in hard surfaces. Check our archives at www.radiostoneupdate.com.

K. SCHIPPER: Hi, I’m K. Schipper with the latest in hard surfaces industry news from Radio Stone Update.

0:32
 
The most-recent round in a court battle between the U.S. Trade Representative – the USTR – and a large group of U.S. importers has gone in favor of the USTR. The federal Court of International Trade ruled in mid-March that the Section 301 tariffs on almost all goods imported from China would remain in place.
 
A three-judge panel found that the USTR acted within its legal authority in imposing the universal tariffs, now at 25 percent, on Chinese imports. The decision rejects arguments by more than 3,600 companies that the USTR didn’t follow guidelines set by the U.S. government and the World Trade Organization.
 
The tariffs were imposed in 2018 in two stages. Although ordered by then President Donald Trump in an effort to prod the Chinese government to negotiate a new comprehensive trade agreement, no such U.S.-Chinese trade agreement has yet been reached.
 
Under current law, the USTR can set tariffs in matters of trade-agreement violations or national security under a part of U.S. trade law called Section 301. Although the 301 tariffs came as part of the Trump administration’s policy, support for the action has continued under the Biden administration.
 
An initial court filing by one company in September 2020 ballooned into the mass action by companies importing a wide variety of Chinese goods. The list of 3,600 filers includes at least 30 companies involved in the U.S. hard-surfaces industry.
 
A year ago, the judges ruled that the USTR had the authority to impose the tariffs, but also required the agency to further explain its decision-making process. Importers had argued that the government office acted without fairly considering arguments made against raising the tariffs.
 
Last month’s decision stated that the USTR acted properly and had legal authority as directed by the president. It’s expected the ruling will be appealed to the U.S. Court of Appeals for the Federal Circuit in Washington, with a decision likely sometime next year.

2:47
 
An association of major quartz-surface producers called for increased education and what it calls adequate governmental involvement in combating silicosis among fabricators. In a statement issued late last month by the Italian-based Agglomerated Stone Manufacturers Association – the AStA -- it also commiserated with workers now battling the crippling and often fatal lung disease.
 
The statement notes that recent developments have shown that unsafe practices are still a reality for some tradesmen, adding the organization is committed to the eradication of any occupational disease in the industry. The statement also cited employees and employers who don’t appreciate the gravity of the danger and the slow development of government occupational guidelines and enforcement.
 
The industry group also refers to recent development in Australia and Spain. However, the group also argued that statistics from both countries show only a minority of silicosis cases involve stone fabricators and related industries. 
 
Still, the AStA praised efforts by the Australian state of Victoria as an example of the government dramatically improving working conditions by requiring fabricators to become licensed and allowing sale of products only to licensed fabricators.
 
In concluding, the statement reads, “We strive for all of our customers to be completely committed to operating with our products in a fully safe manner.” AStA’s 13 members include Caesarstone, Cambria, Compac, Cosentino, Diresco, LX Hausys and Quartzforms.

 4:32
 
MS International, Inc. – MSI – announces the opening of two new showrooms and distribution centers. The center in the Kansas City area is located in Lenexa, Kansas, while the one in the San Antonio area recently opened in Schertz, Texas.
 
The new Lenexa showroom will feature an extensive selection of quartz, granite, porcelain, wall tile, mosaics and more. At 200,000 square feet, the new Lenexa distribution center and showrooms almost triples the space of the company’s previous Kansas City area facility – also in Lenexa – which opened in 2013.
 
MSI Kansas City features a state-of-the-art design center where customers can view a vast selection of surfaces in person. Customers can also use MSI’s interactive, AR visualizers on-site or online. Although already open, a grand opening of the center is scheduled for June 1.
 
The new Schertz, Texas, site, will serve customers in the San Antonio area, as well as in Corpus Christi, Laredo and the Grand Valley. The 68,000 square-foot space will include a full inventory, with more than 300 colors of granite, marble and other natural stone slabs. A separate gallery will house more than 120 colors of the Q Premium Natural Quartz.

Vignettes will display products in real-life settings so visitors can see the latest innovations in everything from hardscaping to porcelain to ceramic tile backsplashes.
 
Headquartered in Orange, Calif., MSI maintains more than 45 state-of-the-art showrooms and distribution centers across the U.S. and Canada.
 
Also, Arizona Tile announces the opening of its newest branch. Located in the Boise, Idaho, suburb of Meridian, that community is a hub for the remodeling and home improvement industry in the Boise area.
 
Designed to enhance the customer experience, the new location includes a state-of-the-art showroom, as well as a quartz and natural stone slab viewing area with color-corrected lighting. Customers may also use a visualizer on the on-site touchscreen.
 
At 45,000 square feet, the showroom, stone gallery and warehouse are designed to offer inspiration through a wide variety of installation examples.
 
Arizona Tile was founded in 1977 in San Diego, and has grown into a nationally recognized commercial and residential distributor in 10 Western states.

8:18
 
It hardly seems like any time has passed since StonExpo closed its doors in Las Vegas after a successful show, and already it’s time to be thinking about StonExpo 2024 and the Natural Stone Institute’s annual awards program.
 
Entries for the Pinnacle Awards denoting projects exemplifying professional mastery in the use of natural stone for commercial and residential applications are now open. A Grande Pinnacle Award, sponsored by Marmomac, is presented to the best overall project. The deadline for applications is May 20.
 
Also due May 20 are nominations for the Industrial Recognition Awards that celebrate individuals in the stone industry for exemplary contributions to the industry and association over several years. Awards include the Migliore Award for Lifetime Achievement; the Women in Stone Pioneer Award; the Natural Stone Craftsman of the Year Award; and the David Fell Spirit of Service Award.
 
Also being accepted are applications for two scholarships: The Natural Stone Scholarship and the Women in Stone Empowerment Scholarship to provide hands-on educational opportunities for aspiring professionals interested in furthering their careers in the stone industry.
 
Entries for the Tucker Design Awards, recognizing design professionals whose projects achieve excellence in the use of natural stone in design and construction will be taken until July 14.
 
For more information about each award, including nomination forms, submission requirements, sponsorship information and details on past recipients, go to www.naturalstoneinstitute.org/awards.
 
10:04
 
BB Industries LLC announces that it has acquired Innovative Tool Solutions –ITS. The Sarasota, Fla.-based stone tools distribution company serves the west-central Florida area.
 
ITS was founded in 2009 by partners John Hager and Tim Olsen. The company will continue to support and grow its Florida customer base. Hager says the partners feel fortunate to be partnering with a company as strong as BBI, which will help ITS take its next step.
 
Olsen adds that ITS’s next step is for the company to offer more products and better product support to its customers while creating more opportunities for its employees and their families.
 
 Rick Stimac, CEO of Knoxville, Tenn.-based BBI, says the move fits well with BBI’s desire to grow as a national distributor through a supporting local presence. For more info, go to www.BBIndustriesLLC.com.
 
In other news around the industry…

11:04
 
StonExpo will see another producer of premium quartz surfaces on the show floor next January in Las Vegas. LeSueur, Minn.-based Cambria announced it will exhibit in the Manufactured Surfaces Pavilion, sponsored by the Stone Equipment Supply Alliance – SESA – and International Surface Fabricators Association – ISFA – at TISE.
 
SESA CEO Jon Lancto says with fabricators having the option to choose the materials they promote in their showrooms, the StonExpo Manufactured Materials pavilion is an excellent opportunity for companies to connect with and influence fabricators. TISE will be held Jan. 30-Feb. 1, at the Mandalay Bay Convention Center in Las Vegas. For more info on the SESA initiative, contact Lancto at jlancto@icloud.com

12:13
 
Ford McArver is the new e-commerce and marketing director for IMS USA. Wilmington, N.C.-based IMS is a specialized distributor of tool holders for the CNC machines used by stone, glass, wood, aluminum, plastic and metal fabricators. McArver has a master’s degree in strategic communication from Liberty University with a focus on digital media.
 
12:42

And, Austin Maxwell, board president for the International Surface Fabricators Association – the ISFA – is one of 15 young industry leaders selected as Rock Star Award winners for Coverings 2023. Maxwell, the president of Maxwell Countertops in Farmer City, Ill., is the sole stone fabricator to be honored this year.
 
The Coverings Rock Stars program honors up-and-coming trailblazers in the tile and stone industries who continually revolutionize and inspire as pioneer of success. The 2023 award recipients will be honored at Coverings 2023 on April 18 at the Coverings Lounge in booth 4209. To learn more about Coverings 2023, and the Rock Stars program, go to www.coverings.com.
 
Remember, the latest issue of Hard Surface Report is now available at www.hardsurfacereport.com. Our newsletter, Slab & Sheet, comes out on alternate Wednesdays. For a transcript of this issue of Radio Stone Update, go to www.radiostoneupdate.com
 
For Radio Stone Update, I’m K. Schipper, and we’ll see you here again soon.
 

China Section 301 Tariffs Upheld
Quartz Mfgs. Group Speaks on Silicosis
MSI, Arizona Tile Open New Facilities
A Word from Quantra
Natural Stone Institute Awards Program Seeks Entries
BB Industries Acquires Innovative Tool Solutions
Cambria Coming to StonExpo
McArver New Marketing Director at IMS USA
ISFA's Maxwell a Coverings Rock Star