"This is just further evidence of weakening in the Chinese economy, which I think will create more leverage for us in terms of our Chinese partners to be more aggressive with pricing," he said. "We will have the ability to negotiate."
Trade prices are negotiated in U.S. dollars, with a currency band on either side, so Arth says his current contracts will not be altered. But if he were to enter into a new deal amid the weakened yuan, he would be poised to save.
For importers of Chinese products, a continued slide will be beneficial, said Molly Day, vice president of public affairs at the National Small Business Association, a Washington, D.C.-based advocacy group.
Read More Will we see a more free-floating yuan?
"They can purchase more products and services cheaper, not just from China, but even other surrounding countries. Their primary competitors in the region will face downward pressure," Day said.
But there's also the chance that a continued weakened yuan puts a further dent in Made in America manufacturing.
"If you are being undercut significantly by foreign competitors in terms of labor costs and wage rules that we have here in America, there is a challenge to compete with Chinese companies for small businesses—this won't help them," Day said.
That is something about the yuan depreciation that concerns Arth, putting the business in the unusual situation of actually competing with itself. About 60 percent of Phoenix's sales revenue comes from product lines the company manufactures in the U.S.
Read More8 young entrepreneurs making more $$$ than you
"On the good side, I can acquire new products at a lower price," he said. "But, the price gap of what I manufacture here in the U.S. and what I import makes my imported products more attractive to my U.S. partners, because they represent my lowest price point."
Moving more business overseas isn't ideal, as Arth's Phoenix is one of the few companies in the country still producing plastic faucets in America.
"We were dragged kicking and screaming to China, and were one of the last holdouts," he said.