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To: factoryrat
Let's run the numbers. Let's assume it takes 10 man hours to build a residential furnace and condenser unit. A very high estimate IMO.

Let's say it retails for $3,000. So if built in Indiana the labor bill is $200.00 per unit. If made in Mexico the labor bill is $30.00. So there is a $170.00 difference between the two on a $3,000 unit.

So marginally the US unit is 170/3000 = 6% more expensive. So Carrier could sell a Mexican built unit for $2,830 or just pocket the 6%. Guess what they do.

95 posted on 12/01/2016 9:39:00 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

The retail price would stay at $3000, and carrier would pocket all of the difference.

Or more than likely, they would actually raise the price, citing restructuring and reorganizing costs (to pay for the new plant in mexico) take a charge against earnings, and dump all of their US employees onto unemployment, while getting the feds to “retrain” them, courtesy of FTAA with our tax dollars.

This is an old game, and has been going on since the late 1980’s.

Businesses don’t even try to hide it anymore, because one whole generation has lived this new reality. They have no idea what is was like to actually make things in the US.


100 posted on 12/01/2016 9:57:17 AM PST by factoryrat (We reserve the producers, the creators. Grow it, mine it, build it.)
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