Introduction

The title is from a comment by Ross Perot, Presidential candidate in the 1992 election cycle. Perot was describing what NAFTA would mean for jobs in the U.S.A. if Bill Clinton was elected President and he proceeded with the North American Free Trade Agreement. That was 1992. Ten years later China had been admitted to the World Trade Organization and began its rapid economic growth. Here are some observations I personally made from both my home town of Albemarle, NC where the County Logo showed the three main economic staples: Textiles, Aluminum and Agriculture. Now, aluminum production is gone and textiles a very small employer compared to the thousands employed in 1990. The story which follows are my observations of history as it impacted me, 1990-2020.

History Tends to Repeat-We Hope NOT

The phrase “History Tends to Repeat” comes to mind when we are looking at the IRA codified “Green New Deal” and forced acceptance of EV’s. President Trump used the poor word choice…. “Bloodbath” when describing what Democrat policies will do to harm the auto industry. Well, a lesson from history may help explain how correct Mr. Trump’s dark vision of the future under another Biden term could be. I agree with him. Here is a lesson from history that supports Mr. Trump’s comments.

Case Study-Stanly County, NC 1990-2000

As I watch the news on China and absorb just how dependent we are on imported Chinese products, I cannot help to reminisce and look back on my past experiences during the time that we started Storm Engineering (1992, later DBA Storm Technologies). It was a good time for the electric power service engineering business to grow, but not so great for the textiles & furniture industries, which were the mainstay for NC employment up until NAFTA.

Do you remember the Quote uttered by Ross Perot in 1992. “Giant Sucking Sound” when referring to NAFTA and his prophetic forecast of massive American job losses? I do. Let me explain the photo below. It is a picture of the partial demolition of Wiscassett Mills, Mill No. 4 in Albemarle, NC. If you look closely the sign on the remaining brick wall, near the previous employee entry gate States: “Our Employees Make the Difference.”  Yes, the Albemarle employees of Wiscassett Mills did make a difference, they had been reliable, loyal, hard-working and productive for nearly 100 years. Wiscassett Mills began operations about 1898. Many future military, industry and business leaders were sent to college and nationwide recognition from paychecks earned in these textile mills.

Back in 1990, we would never drive by the parking lot at 3:30 in the afternoon because of the massive traffic as 1,000’s of Wiscassett employees left work after their shift ended.

In 1994 the North American Free Trade Agreement was signed and the “Giant Sucking Sound” applied to thousands of jobs in Albemarle, Stanly County, NC. 

Then in 2001 China was allowed to join the WTO (World Trade Organization) and that further increased the drain of American jobs. 

Why would I have these old pictures? Well, it was a sad time for NC Textiles in 1996. But for me personally and Storm Technologies it was a time of business growth. Needing a larger office as our company grew, our friend from Sunday School, Mr. El Wilson suggested we take a look at this property. Jerry Barrier, our accountant and ourselves stretched all available credit to purchase the Main Building of Wiscassett Mills. A stately, well-built 7,000 square foot brick building constructed in the late 19^th Century and expanded over the years. If we did not purchase it, it too would have been razed. Here below is a photo of the building which proudly remains as headquarters for Storm Technologies. The loss of Wiscassett Mills was huge for Albemarle as Textiles were the number one employer of citizens. The total population of Stanly County was about 60,000. (in the 1990’s) Population of Albemarle about 16,000. Total Industrial jobs in Stanly County about 1970 was over 9,000. Most of these were textile workers and about 750 employed at the ALCOA Aluminum Smelting Plant in nearby Badin.

The loss of Textile, Aluminum & Furniture jobs to the rest of the world after NAFTA was severe. It was hoped that “High Tech” jobs would replace these.  Well, after NAFTA came China’s entry into the WTO in 2001 and the rest is history. More on China’s rise later.

I am proud to say that Storm Technologies, Inc. continues business today under the leadership of my son Danny Storm. Over the years the company has earned awards as a leading business in Stanly County and the state. We are proud of these accomplishments but ever mindful that the building, which is the headquarters for Storm Technologies, with less than 50 employees was once the administrative building to manage thousands of textile workers. 

I am now retired but have fond memories of working through the struggles of building the business. The good and the bad.  Now, 32 years later I have time to reflect on my personal good experiences which took place 1992-2012 as our company grew. Danny and his management team have done outstanding work and progress since I retired. However, not without their own challenges today with the war on coal, increased Regulations and anti-business policies.

China Joins WTO

During this same period of NAFTA and China joining the WTO, the experiences for many American workers has not been as positive. Especially for textiles, furniture, steel and aluminum production. 

Let’s take a look at China trade for 2018 and see what China exports to the U.S.A. Today it is not only towels and pillowcases.

A reminder, Cannon Mills, which was the parent company of Wiscassett Mills, once manufactured most of the world’s towels, sheets and pillow cases. A retired executive from Cannon Mills told me, “at the peak production in the 1970’s Cannon Mills produced over 60% of the world’s towels, sheets and pillow cases”

Then came NAFTA and China’s membership in the WTO.

The chart below was published by Market watch in June 2019.

The highs (few) and lows (many) of U.S. trading with China

When China entered the WTO in 2001, they offered textiles, furniture and many low technology products. As they acquired the Intellectual Property of western nations that trusted China with long established trade secrets, China used these to produce world quality products. Most of them high tech. Remember the concerns raised by President Trump about Huawei providing 5G Telecommunications gear to America and European Nations? This is some of the highest technology equipment in the world. The threat of China passing America not only in economic growth but also in technological advancements is real. Mr. Trump, like Ross Perot in 1992, had a sense of realizing the consequences of wrong and unfair U.S. Trade Policies.

When I was a College student one instructor advised me. “Listen to experts and keep your mouth shut, then you will know what you know, plus what the other fellow knows” That seems to be the path of China. Except, I sincerely believe that the CCP was and remains dishonest and deceitful along the way to acquiring all that we know how to do. The Chinese Communist Party is no longer a Developing Nation. They have come a long way since entering the WTO. This is my personal take on China’s progress in business and industry 1992-2024.

Dick Storm

April 20, 2020, updated March 18, 2024

References and Further Reading

1. Ross Perot video in 1992 Debate, Washington Post: https://www.washingtonpost.com/video/politics/perot-in-1992-warned-nafta-would-create-giant-sucking-sound/2019/07/09/1f2a84e9-a56c-4487-9c43-892ab1b0c782_video.html
2. Dick Storm Presentation to the Delaware County Bar Association, 2016 on the Relationship of Energy Policy on Economic Prosperity and Industrial Production: https://dickstormprobizblog.org/2016/07/25/energy-and-economic-prosperity-my-thoughts-dick-storm/
3. The Importance of Energy in Our Lives: https://dickstormprobizblog.org/2020/08/25/the-importance-of-energy-to-power-high-quality-of-life-part-1/.
4. The Importance of Energy to Power Our High Quality Lives, Part 2, Aug. 28,2020 : https://dickstormprobizblog.org/2020/08/28/the-importance-of-energy-part-2-our-energy-sources/  
5. The Importance of Energy, Part 3, Heat Engines, Sept. 9, 2020: https://dickstormprobizblog.org/2020/09/09/the-importance-of-energy-part-3-heat-engines-a-primer/
6. The Importance of Energy for Economic Prosperity, Part 4, The Rise of the U.S and the Rise of China from an energy perspective: https://dickstormprobizblog.org/2020/09/21/part-4-the-importance-of-energy-to-economic-prosperity/
7. Dick Storm thoughts on the “Green New Deal” , Oct. 10, 2020: https://dickstormprobizblog.org/2020/10/10/part-5-dick-storms-thoughts-on-the-green-new-deal/
8. A Thriving Economy and Clean Air Too, Oct. 23, 2020 : https://dickstormprobizblog.org/2020/10/23/part-6-a-thriving-economy-and-clean-air-too/
9. China’s Influence in the World and the Need to Reshore American Manufacturing, Nov. 3, 2020 : https://dickstormprobizblog.org/2020/11/03/chinas-economic-influence-in-the-world-and-some-thoughts-on-the-need-to-reshore-american-manufacturing/  
10. Thank You President Trump, Nov. 13, 2020 : https://dickstormprobizblog.org/2020/11/13/thank-you-president-trump/
11. Are You Worried about the Future of America? Jan. 21, 2021 Thoughts on Energy Policies, Industrial and Economic Growth: https://dickstormprobizblog.org/2021/01/21/are-you-worried-about-the-future-of-america/