Loren's Statement

Many of our employees are properly concerned about the direction of the new leadership team in Washington.  I would certainly encourage anyone so inclined to stay informed, look for multiple sources of information, and to get engaged on local, regional and national levels to strengthen the checks and balances built into our political system.

I would like to share managements’ perspective regarding the direct impact of potential policy initiatives recently being discussed – specifically, building a wall along the USA/Mexico border, and imposing import tariffs either on products brought in from Mexico or more broadly.

  1. Border Wall: Even in the unlikely event that such a wall is completed, we do not anticipate any direct impact on Spellman de Mexico – although it would be an enormous waste of US resources that could be used to build needed infrastructure and would have a significant negative environmental impact.
  2. Import Tariffs: Whether limited to Mexico or more broadly applied, import tariffs would have only limited direct impact on Spellman.  Such taxes would be on the value added in Mexico, and while it would increase our cost of production and reduce margin, it would be modest and offset by other factors and would not seriously threaten our ability to compete globally.

In my opinion, of greater concern is the degree to which global economic growth will be slowed by the increased uncertainty, which would most likely delay our customers’ expansion in capacity and investment in innovation.

Spellman has thrived in difficult economic conditions by continuing to invest in its people, products, production capabilities, and infrastructure.  We are in a stronger position now than we have ever been to respond quickly and effectively if and when disruptive events occur.   I am confident that by working together we will be able to continue to Understand and Provide what our Customers Value during this administration.

Thank you all for your continued support.

Loren Skeist, MD
President and CEO
Spellman High Voltage Electronics Corporation