PC Case Maker CaseLabs Closes Permanently (pcgamer.com)

U.S.-based PC case manufacturer, CaseLabs, announced on social media that it is "closing permanently" and will not be able to fill all current orders. "We have been forced into bankruptcy and liquidation," CaseLabs said in a statement. "The tariffs have played a major role raising prices by almost 80 percent (partly due to associated shortages), which cut deeply into our margins. The default of a large account added greatly to the problem... We reached out for a possible deal that would allow us to continue on and persevere through these difficult times, but in the end, it didn't happen." PC Gamer reports: CaseLabs is likely referring to the growing number of tariffs being enforced on Chinese imports by the United States government. China and the US are currently engaged in a trade war, causing many U.S. companies to lose money, lay off employees, or close entirely. CaseLabs went on to say that it won't be able to fill the backlog of case orders, but other parts will most likely ship to customers. "We are so incredibly sorry this is happening. Our user community has been very devoted to us and it's awful to think that we have let any of you down."

Comments

Can Someone Explain?

[wisnoskij]

U.S.-based PC case manufacturer

The tariffs have played a major role raising prices by almost 80 percent (partly due to associated shortages)

Can someone explain? The tariffs are designed to help American manufacturing, they make American products cheaper than foreign products. And as for shortages, a PC case manufacturer needs thin sheet steel, paint, plastic, and LEDs. Don't tell me you cannot get sheet steel in America any longer? Also, the margins on cases should be astronomical, 5 lbs of steel and a few LEDs, an ounce of black paint and a few plastic parts probably take 5-8 dollars in material costs. The only problem in the industree should be that China can make them cheaper which can be solved with the appropriate tariffs.

Re:Can Someone Explain?

[bartwol]

1) Tariffs don't make American products cheaper...they make foreign products more costly (by adding taxes at import time).
2) Yes, you _can_ get all those materials (steel, paint, plastic, LEDs) in the U.S., but at least some of them are available at a substantially lower cost from other countries (e.g. steel from China).
3) The margins on almost all competitive consumer products in the U.S., including computer cases, are VERY thin no matter what kind of optimizations you try to make to the production process. That's what competitive markets do...offer consumers a variety of prices, qualities and relative values. Consumers pick their preferences, and all other things being equal (e.g. relatively similar computer cases), consumers will typically select the lower priced one.

The short term effect of increased tariffs will be increased prices for the same goods you bought cheaper before the tariffs. The political and longer term effects are more uncertain, especially when you factor in the possibility that unfair players (like China with respect to intellectual property violations and government subsidies) will also hurt in the short run, and may improve their behaviors in the longer run. But you won't find many consumers who will prefer the fairly certain near-term increase in sticker prices [dripping with understatement].

Re: Can Someone Explain?

[Anonymous Coward]

It was caused by public policy. It was not fixed, not was any serious attempt made to fix it. Under Bushbama rate of decline in working class living standards increased substantially.

President Trump is trying to end this 40+ year economic catastrophe by changing the public policies that caused it. He is being opposed at every turn by the oligarchy and their running dogs.

Re:Look at all these jobs...

[PopeRatzo]

Given that ever manufacturing job creates 3.6 additional jobs

So, I assume that means that every manufacturing job lost means 3.6 additional jobs lost. So the Carrier and Harley-Davidson plants moving out of the country will more than offset those "3000+" new jobs created by the degenerate president's tariffs. According to your math.

Re:Look at all these jobs...

[gtall]

To put a finer point on your point, Trump says the tariffs will pay down the U.S. debt. Hmmm....so if taxed $500 Billion of Chinese exports at 25%, we have $125 Billion. The U.S. has a roughly $20 Trillion dollar debt, that'd be $20,000 Billion. So Trump has a way to go...waaayyy...waayyys to go because... ...courtesy of his and the R's tax give away, we will now have $1 Trillion deficit this year and in succeeding years, it only gets worse. And they promised us that the tax give away would pay for itself. Hmmm...Voodoo Economics rises from the Dead, Repeat ye of Little Faith.

Re: Look at all these jobs...

[julian67]

It's time to admit the truth. I have no rodent problem. No mice, no rats. Some squirrels in the garden but that's fine. Here is the real reason for me looking at rodent traps on aliexpress: my young nieces wanted pets. Their mother, my sister, got them fancy rats. The girls like them but not enough to properly take care of them, clean their living spaces and all the stuff that domesticated animals require.

I do not like rats. I have lived in Bangkok. I do not ever want to be close to another rat, wild or domesticated, cooked and presented on a stick, or live and actively ratty, or anything in between. I am rather keen on helping these unwanted pets on their journey to rat heaven or hell, which are probably indistinguishable to the human eye but may actually closely resemble Bangkok. Or Chennai (less fresh food but the human faeces is that much more accessible). So I casually browsed rodent traps on my favourite shopping site. I didn't buy any yet, but have greatly enjoyed the very explicit and frank illustrations of the products' successes.

Thank you for your interest. Have some cheese.

Re:We aren't

[ShanghaiBill]

if we are going to correct the trade imbalances

Tip: We aren't.

Indeed. The root problem is that America consumes too much and invests too little. Tariffs will not change this, and by lowering wages and raising prices, make it even harder.

Fewer Americans will design smart phones. More will sew t-shirts.

But Donald Trump has made one change to America that may have long term positive effects: He has turned many liberals into champions of free trade.

Re: Look at all these jobs...

[Chas]

*sets aside the TDS crazy*

Sorry, do you even know who Case Labs is?

They're a low volume, high price boutique computer case seller.

Sure, there are $2,000,000 cars out there. But not many people buy them. As there may be no value proposition for them.
Sure, Case Labs makes $500+ cases. But not many people buy them. As there is no value proposition for them.

As such, anything that even MODESTLY disrupts their price/profit model is going to wreak havoc.

And that's under the naive assumption that there are NO other market forces acting on them. Remember what I said about few people dropping $500+ for a case? And the fact that there are other boutique sellers out there as well?

Also, CaseLabs is based in California. Probably THE most business-unfriendly state in the union. I wouldn't be surprised if their efforts to legislate businesses out of business didn't drastically impact their employee and insurance costs.

Re:We aren't

[Serge_Tomiko]

This shows a fundamental lack of understanding of the shift of the world using the USD as the primary means of exchange to something else, like Keynes' Bancor or something similar. China has been calling for this for nearly a decade.

https://www.bis.org/review/r09...

At the end of the day, the problem is Congress. They have known for nearly 10 years China was going to pull the plug. This is the price we pay.

As well, I'm always amazed at people who say trade imbalances don't matter. Don't you study history? This is what World War II was about! What did they discuss when the UN was founded? Trade imbalances! They discussed nothing else of significance.