It's sad that this is becoming so common with companies. How do these companies expect to sell products if people don't have jobs to pay for them?
That giant sucking sound that H. Ross Perot talked about, and every one told him he was an idiot. Funny how that sucking sound is getting louder.
Funny story about the first Japanese company to build cars in the USA, including body panels stamped here, tires from Akron, an engine plant built here and one of the highest US content of just about any car at the time, Honda decided to make their current generation Fit in Mexico. Honda prided itself on very high quality, and were shocked to find parts being stolen from their transportation vehicles, trains and semis. And the assembly line quality was nowhere near what Honda mandates requiring many cars coming off the line to have to be repaired including some cars found with parts missing.
When they say it is cheap, they weren't kidding. Cheap not inexpensive.
I wonder what the quality of Mexican Carrier HVAC will be?
It's sad that this is becoming so common with companies. How do these companies expect to sell products if people don't have jobs to pay for them?
And yet there are some here who will only point to unions as being the problem.
These job losses are further decimating the middle class...
How much of this is corporations chasing expanding profits and how much of it is them chasing competitiveness? How many of us, when shopping for a new heat pump or air conditioner even bother to ask where the unit is made? I'd wager, given available options, 95%+ of people shop by price, as the prime factor or at least the tie breaker. If Bryant can sell their units 10% less because of lower labor rates and impact of fewer regulations compared to a comparable Carrier, you know what most people will do.
We're doing this to ourselves.
Something's gotta give when 3/4 of the workforce is making $70k (if that article is accurate...). Combine high wages with benefits, pensions, and costs associated with increased regulation and what does one expect to happen? The Golden Goose dies when things get out-of-balance. Saw the same thing happen in Bloomington at the GE refrigerator plant when I was there discussing some contact work. It wasn't pretty.
Something's gotta give when 3/4 of the workforce is making $70k (if that article is accurate...). Combine high wages with benefits, pensions, and costs associated with increased regulation and what does one expect to happen? The Golden Goose dies when things get out-of-balance. Saw the same thing happen in Bloomington at the GE refrigerator plant when I was there discussing some contact work. It wasn't pretty.
How much of this is corporations chasing expanding profits and how much of it is them chasing competitiveness? How many of us, when shopping for a new heat pump or air conditioner even bother to ask where the unit is made? I'd wager, given available options, 95%+ of people shop by price, as the prime factor or at least the tie breaker. If Bryant can sell their units 10% less because of lower labor rates and impact of fewer regulations compared to a comparable Carrier, you know what most people will do.
We're doing this to ourselves.
Wonder how much FMLA will be used at the new plants?
Between drugs, FMLA and gov strings mandating hiring Ef Ups (they can't run a machine or remember what they were told yesterday but can sure buzz around on a smart phone)..............management won't enforce the rules, the unions are stuck with idiots.
In and out of the factory, we need a purge.
I heard it too. $100? Seems too low. There has to be VERY little materials involved and very little manpower to assemble it for a total cost of $100.
???????
We use Carrier equipment pretty much exclusively. It has been reliable and efficient. Price points are acceptable as well.
We may change in light of this.
Amarican standard (Trane) makes good equipment as well. A bit pricier but to my knowledge built in the states. At least for now.
Honestly, looking at my heat exchanger, it has one circuit board about 7 inches by 12 inches, a big fan, and some metal. $100 might be low but I would bet it's closer to that than $1,000.
There is mark ups as the equipment passes through the supply chain. That is business.
The final price paid by the end user is not what the factory see's. It has passed through the supply chain and been touched by at least 2 business interests.
Factory/distributor/installer. Marked up at every stop.
That folks do not see this is bothersome.
I absolutely understand that, my point is that given production cost is already presumably low, are they really saving money? Does the increased shipping cost, increased defect rate, and bad PR equal or exceed the cost savings of moving production?
My own company has shifted back to domestic call centers and the customers love it. They are ec-freaking-static to speak to someone in America. That's goodwill and PR no advertising campaign can buy.
I used to work for a seatbelt manufacturer. In the mid 90s they had a plant in Michigan City and two in Mexico. The belts made in Mexico were sent to the MC plant and went through a QC check. 10-25% of all of the belts failed on a daily basis. That didn't stop them from closing the MC plant and moving all of the production to Mexico, while removing the extra QC.That giant sucking sound that H. Ross Perot talked about, and every one told him he was an idiot. Funny how that sucking sound is getting louder.
Funny story about the first Japanese company to build cars in the USA, including body panels stamped here, tires from Akron, an engine plant built here and one of the highest US content of just about any car at the time, Honda decided to make their current generation Fit in Mexico. Honda prided itself on very high quality, and were shocked to find parts being stolen from their transportation vehicles, trains and semis. And the assembly line quality was nowhere near what Honda mandates requiring many cars coming off the line to have to be repaired including some cars found with parts missing.
When they say it is cheap, they weren't kidding. Cheap not inexpensive.
I wonder what the quality of Mexican Carrier HVAC will be?
1,400 good jobs will start leaving next year, and 1,400 middle class families are going to be scrounging. The problem with factory jobs is that there isn't a whole lot to fall back on that will pay as well. If all you've known for 10, 20, 30 years is making X part on Y machine, you can't exactly go hire on somewhere else tomorrow for the same pay and benefits.....