Business owners say the Trans-Pacific Partnership shows promise

GRANITE FALLS — Anna Schoolcraft likes her commute.

It takes her about three minutes driving in her red Corvette Stingray to get to her job at Cobalt Enterprises, a machine shop that makes parts for aerospace companies.

Nearly all of the company’s 98 workers live within 10 miles of the shop.

That’s by design, says Cobalt Vice President Paul Clark. He runs the company with its founder, President Fred Schule.

Both men say it is important to them to bring jobs to the community. And, they add, lowering trade barriers will make it easier to do that.

“It’s a great place to work. They take care of us,” Schoolcraft said.

The company offers good pay and benefits. There’s also free soda, juice and food in the break room.

The workers are locals, but the parts they make end up on commercial airplanes flying around the world.

Schoolcraft was inserting tiny aluminum rings into heat sinks that will be shipped to Malaysia for further processing before being sent to Crane Aerospace in Lynnwood. In the end, the heat sinks will go into circuit boards used on airplanes.

“We are a link in the chain” that spans the globe, Clark said.

So, lowering trade barriers means more business for Cobalt, which can hire more locals, he said.

The proposed Trans-Pacific Partnership trade agreement will lower barriers and boost business for Cobalt and hundreds of other small aerospace suppliers in Washington, he said. Negotiators recently finished the agreement’s text, which must still be approved by Congress and the White House.

The huge free-trade proposal includes the U.S. and 11 Asian and Pacific Rim countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The TPP was negotiated behind closed doors, and the text has not been made public. So, no one knows exactly what the agreement says.

Free-trade advocates in the U.S. say the agreement will spur economic activity that will help more people than it hurts, and American manufacturing will benefit from greater access to foreign markets. The agreement also includes minimum standards for labor rules, environmental quality and intellectual property.

A broad collection of groups oppose the pact, including environmental advocates, labor unions and advocates for digital consumers.

Labor groups say the Trans-Pacific Partnership will make it easier to move American jobs overseas. The Washington Fair Trade Coalition calls it a “super-size version” of the North American Free Trade Agreement, which many labor activists blame for moving jobs out of the country.

At Cobalt, Schule isn’t worried about work going overseas.

Machine shops in countries where labor is cheap can’t compete on quality, which must be extremely high and consistent in aerospace. Also, Cobalt Enterprises makes many parts that have to be made in the U.S. due to federal restrictions on exporting military-related technologies.

“When a company bids us against foreign competition, we don’t play that game” by cutting the job price, he said in his office overlooking a handful of milling machines on the shopfloor.

Schule started Cobalt Enterprises in 2004 out of his garage. He’s built the company into one with a reputation for doing high-quality work on hard jobs.

Now, it fills four big buildings just outside Granite Falls and is still growing.

Cobalt’s revenues should grow by about 40 percent in 2016, Clark said.

The company is moving most of its operations to a new home in Lake Stevens in 2016. Work will continue at its current site, which will focus on expanding its high-press hydraulic system business.

Small exporters in Washington stand to benefit the most from the agreement, said Maria Contreras-Sweet, head of the U.S. Small Business Administration.

Big producers can absorb the costs of international trade, which price out smaller companies.

“TPP is going to change the math” for some Washington businesses and farms looking to export, she said.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

Larsen to hold meetings

U.S. Rep. Rick Larsen is still figuring out his position on the Trans-Pacific Partnership. Starting next week, he is holding open meetings to hear voters’ thoughts on the proposed agreement. The Snohomish County meeting will be at 9:30 a.m. Nov. 14. The location has not been set. For information, call his office at 800-562-1385, or check his website at larsen.house.gov.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

Everett Mayor Cassie Franklin, Advanced Manufacturing Skills Center executive director Larry Cluphf, Boeing Director of manufacturing and safety Cameron Myers, Edmonds College President Amit Singh, U.S. Rep. Rick Larsen, and Snohomish County Executive Dave Somers participate in a ribbon-cutting ceremony on Tuesday, July 2 celebrating the opening of a new fuselage training lab at Paine Field. Credit: Arutyun Sargsyan / Edmonds College
‘Magic happens’: Paine Field aerospace center dedicates new hands-on lab

Last month, Edmonds College officials cut the ribbon on a new training lab — a section of a 12-ton Boeing 767 tanker.

Gov. Jay Inslee presents CEO Fredrik Hellstrom with the Swedish flag during a grand opening ceremony for Sweden-based Echandia on Tuesday, July 30, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Swedish battery maker opens first U.S. facility in Marysville

Echandia’s marine battery systems power everything from tug boats to passenger and car ferries.

Helion Energy CEO and co-founder David Kirtley talks to Governor Jay Inslee about Trenta, Helion’s 6th fusion prototype, during a tour of their facility on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
State grants Everett-based Helion a fusion energy license

The permit allows Helion to use radioactive materials to operate the company’s fusion generator.

People walk past the new J.sweets storefront in Alderwood Mall on Thursday, July 25, 2024, in Lynnwood, Washington. (Olivia Vanni / The Herald)
New Japanese-style sweets shop to open in Lynnwood

J. Sweets, offering traditional Japanese and western style treats opens, could open by early August at the Alderwood mall.

Diane Symms, right, has been the owner and CEO of Lombardi's Italian Restaurants for more than three decades. Now in her 70s, she's slowly turning the reins over to her daughter, Kerri Lonergan-Dreke.Shot on Friday, Feb. 21, 2020 in Everett, Wash. (Andy Bronson / The Herald)
Lombardi’s Italian Restaurant in Mill Creek to close

Lombardi’s Restaurant Group sold the Mill Creek property currently occupied by the restaurant. The Everett and Bellingham locations remain open.

The Safeway store at 4128 Rucker Ave., on Wednesday, Nov. 29, 2023, in Everett, Washington. (Mike Henneke / The Herald)
Kroger and Albertsons plan to sell these 19 Snohomish County grocers

On Tuesday, the grocery chains released a list of stores included in a deal to avoid anti-competition concerns amid a planned merger.

Helion Energy CEO and co-founder David Kirtley talks to Governor Jay Inslee about Trenta, Helion's 6th fusion prototype, during a tour of their facility on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Inslee energized from visit to Everett fusion firms

Helion Energy and Zap Energy offered state officials a tour of their plants. Both are on a quest to generate carbon-free electricity from fusion.

Awards honor employers who promote workers with disabilities

Nominations are due July 31 for the awards from the Governor’s Committee on Disability Issues and Employment.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.