Impact of Steel Tariffs on Ice Rink Construction Costs for American Customers

A metal plant based in Winnipeg is expressing concerns that the recent U.S. tariffs on steel and aluminum will negatively affect American customers involved in building artificial ice rinks. This development injects uncertainty into their future contracts at a time when the business is actually expanding.

Hunter Wire Supplies Essential Products for Ice Rink Construction

Rick Koss, the former owner of Hunter Wire, currently involved in the business, indicated that these tariffs will particularly impact American clients who utilize products required for artificial ice rinks. He noted, "Canada has a specific expertise in ice rink construction, and many key contractors operate from here. The products that are shipped to the U.S. will be subject to these tariffs."

Hunter Wire specializes in manufacturing ice rink pipe chairs—steel-wire structures crucial for building rinks. These chairs support both the rebar in the arena's flooring and the refrigeration pipes necessary for cooling the ice.

Production and Sales of Ice Rink Pipe Chairs

"Somebody's paying the tariff on it. In this case, it's our customer," Koss said, emphasizing the financial burden on U.S. clients.

The company has been producing ice rink pipe chairs since the early 1960s and has improved the original design over the years. Now, Hunter Wire is the primary supplier of these chairs throughout North America, catering to both professional and recreational facilities.

According to Koss, they supply ice rink pipe chairs for around 150 to 200 rinks annually. "Every NHL rink we've worked on has utilized our product, even if it's not visible during the game," he stated, showcasing the company’s significant contribution to high-profile projects.

Approximately 30 percent of the chairs are exported to the United States. Under the Canada-United States-Mexico (CUSMA) trade agreement, these products should typically be exempt from tariffs. However, due to new tariffs introduced by the U.S. government—specifically a 25 percent tariff on Canadian steel and aluminum—the scenario has changed. Koss remarked, "Customers are effectively forced to accept the higher prices."

Concerns About Future Orders

Hunter Wire's ice rink pipe chairs are a unique item in the rink construction market, manufactured using specialized equipment. Koss noted that entering this industry would require over $1 million in investment, making it unfeasible for many competitors to emerge.

He stated, "It’s not a large enough market for numerous competitors. Every rink has its own specifications, which further protects our business from foreign competition."

However, with U.S. customers bearing the added costs from tariffs, there is anxiety about whether contracts and orders will be delayed or canceled. Koss explained that businesses are uncertain about how to communicate these changes to their clients. So far, no orders have been canceled, but the possibility does cause worry, especially as Hunter Wire ramped up production to meet increasing demand.

"We've made commitments, including equipment leases and expansions to our facilities," Koss mentioned. He expressed concern for the company’s stability, stating, "You can only tackle challenges as best as you can. If things don't turn around, we could face dire consequences."

Hunter Wire has experienced receivership in the past, which Koss described as a difficult situation, and he is not keen on facing it again.

Response from the Canadian Government

As the United States begins enforcing these tariffs, Koss noted that while Canada's response has been fairly robust, he believes the province of Manitoba could consider measures similar to those in Ontario. For example, Ontario recently proposed a surcharge on electricity exports to the U.S. as a counteraction to tariffs.

Koss stated, "Canada must take a firm stance and respond to the trade challenges posed by the U.S."

During a recent session in the Manitoba Legislature, the Minister of Business, Trade and Job Creation, Jamie Moses, mentioned that the provincial government is actively working with local businesses that export steel and aluminum.

However, Richard Perchotte, a Progressive Conservative MLA from Selkirk, criticized the government for lacking a dedicated plan to support workers in the steel and aluminum sectors, which employ around 800 constituents in his area. He stated, "Failing to plan is planning to fail. Steel and aluminum companies in Manitoba require a solid plan to navigate the economic challenges posed by these tariffs."

Tariffs, Construction, Rinks