Red wagons rolling to China

The Chicago Tribune ^ | March 30, 2004 | Rob Kaiser

[Willie Green]

Chicago-based American icon to quit making its famous wagons here, resulting in lost jobs for about half its 90 workers. Its headquarters and distribution arm will stay.

Another slice of Americana is being outsourced to China.

Radio Flyer Inc. will stop making its famous red metal wagons in Chicago by the fall, halting its final manufacturing operation and releasing nearly half of its 90 employees.

Although Radio Flyer has resisted this move since it exited the steel-wheelbarrow business 15 years ago, the 87-year-old company finally succumbed to low-cost production overseas after determining its Chicago plant was too expensive to maintain.

The company plans to keep its headquarters and distribution arm at 6515 W. Grand Ave.

"We're still a Chicago company," said Robert Pasin, the firm's third-generation chief executive. "We're still a Chicago brand."

[exnavy]

When will it stop?

[discostu]

It only stops when the laws of business change. It is a businesses DUTY to make a profit through whatever means necessary.

Luckily all the panic is BS. Still TONS of manufacturing jobs in America, but "Business going swimmingly" is a dull headline so nobody ever writes that story.

[Poohbah]

It will stop when we realize that excessive taxation, excessive regulation, out-of-control litigation, and other class warfare policies tends to convince capital to flee a nation.

[Dialup Llama]

>"We're still a Chicago company," said Robert Pasin, the firm's third-generation chief executive. "We're still a Chicago brand."

Specifically what about your company has anything to do with Chicago except a post office box?

[MegaSilver]

Luckily all the panic is BS.

Economically speaking. I'm more worried about the prospect of a future conflict with China crippling our economy and military capabilities when all our products are manufactured by a rogue nation.

[NeonKnight]

It's Bush's fault. Lets have hearings.

[Investment Biker]

duplicate here http://www.freerepublic.com/focus/f-news/1108141/posts

[rogueleader]

Oh well. At least no Americans wanted those jobs.

BTW, I don't like their new plastic wagons. The steel wagons were real. When I was a kid, that's what we had. Plastic sucks. Good riddance, Radio Flyer.

[Willie Green]

Same story, but a different article from a different source.
Thanks for the link!

[Doc On The Bay]

So, When we are "At Odds" with China, WHERE do our Children get their "Radio Flyer" Wagons??

Doc

[Tacis]

"It's Bush's fault. Lets have hearings."

The hearings would only prove that, 87 years ago,the company should have started in Georgia or Texas rather than Chicago.

However, just think of all the local politicians who put kids through law school on the money extorted from this one Chicago company. I gotta assume that the production workers paid excessive union dues to some sleazy local that was a terrible burden to this company and never did anything to support it.

[Integrityrocks]

I would sure like to see a public statement on what the "costs" are that are the defining reason for moving. I am willing to bet it is a combination of "environmental" regulations, "Workman's comp" expenses, "Labor Union" mandates, "Universal Building Code" regulations, "Chicago" code regulations, "Local" business tax rate. Federal "Handicapped" regulations, Federal "Paid Leave" regulations (for everything from a new baby to sneezing parent), AND "Insurance" costs. But ITS ALL BUSH'S FAULT. Not...

[BipolarBob]

It will stop when consumers say NO to Chinese-made stuff.

[discostu]

Luckily we're not even remotely close to a place where all our manufacturing is happening in China, or outside of our own borders. Like I said ALL the panic is BS. The manufacturing sector in America is HUGE, bigger than it was prior to WWII by a lot.

[MegaSilver]

The manufacturing sector in America is HUGE, bigger than it was prior to WWII by a lot.

More can be done.

The Sherman Act must be extended to include labor unions. The corporate tax rate must be sunk to a level no higher than Ireland's (12.5%) to compete. We should adopt a policy to punish nations who issue tarrifs on us by responding with equal tarrifs until they agree to remove them.

And for gosh sakes, get rid of the welfare state.

[Ben Ficklin]

This is what you have to go thru to paint little red wagons in Chicago

Or, you could say screw the bastards and move to China.

[discostu]

Sure more can be done. I never said that it couldn't or shouldn't. I just said all the panic and talk of America becoming a service economy flies in the face of the facts that our manufacturing sector is actually pretty healthy, it could be healthier but it's no where near death's door as so many like to portray the situation.

[wordsofearnest]

I read somewhere that you can tell the state of a countries manufacturing by what it's known for:

Japan- consumer electronics
Germany- automobiles
USA- airplanes
China- ??

[TXBSAFH]

I refuse to buy Chicom.