Posted on 10/17/2016 9:30:19 AM PDT by reed13k
Looks like another factory in Indiana planning to relocate - this time Rexnord Bearings.
Link: http://fox59.com/2016/10/16/rexnord-bearings-employees-planning-for-their-jobs-to-dissapear-to-mexico-by-april/
Well this is obviously all Eric Holcomb’s fault. I saw it on a John Gregg commericial. /s/
Gregg will spend Indiana into bankruptcy, just like he did the last time he was in the Statehouse.
Time is running out for America kiddies. Can you imagine what 4 years of Hillary’s “Open Borders” would do to our industry and labor forces? Vote TRUMP!
If Hillary is elected, they can kiss their jobs goodbye.
I hate it for them.
The Steel Workers Union said average wages in Indianapolis are $24 an hour. Jones says the Union is planning to meet with the company in the coming weeks to negotiate. The company still maintains that the decision is tentative.
Yes, regulations and some taxes are minor reasons US corporations move factories to cheap labor nations. But the overwhelming reason factories are moved is to take advantage of cheap labor. Many like to pretend otherwise, but pretending only serves to muddy the issue.
And once tariffs are reduced or eliminated, the profit incentive to relocate to cheap labor nations is even greater.
Yes, regulations and some taxes are minor reasons US corporations move factories to cheap labor nations. But the overwhelming reason factories are moved is to take advantage of cheap labor. Many like to pretend otherwise, but pretending only serves to muddy the issue.
Let me give a dirty little secret here - it's not the higher wages paid to American workers that is killing our manufacturing it's the union mentality low productivity and massive overhead from government regulations, mandates and taxes that is killing jobs and re investment in America's domestic manufacturing base.
NAFTA is not nearly as negative as other foreign trade because it allows for sharing of manufacturing - it's just gotten out of hand because of a desire on the part of the American political and business elites that are selling our country down the river.
Given our current circumstances, America needs a focused immigration policy to bring in talented labor to offset baby boom demographic shifts, but it is instead being used to recruit uneducated, illiterate (even in their own language) third world people to become a permanent welfare class to destroy the American middle class.
Trump is right, we need to renegotiate the detail terms of our agreements because they have been negotiated by bribed negotiators who are not negotiating in the interests of the American people, but we really need to hit the over regulation, low productivity and punitive tax laws that are killing domestic manufacturing.
Probably the biggest issue we need to deal with is the Obama Administration's demonic plan to kill job opportunity and turn working class Americans into welfare slaves by hooking unemployed Americans on welfare payments to make them dependent upon government
Unions———and OSHA, EPA, lawyers, city, county,state,federal taxes,
Donkeycare, liability insurance, structure insurance, gas costs, electricity
costs-——and there must be more.
“The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”
Alexis de Tocqueville
BS. Some of the first manufacturing jobs to leave the US were in industries with little unionization such as textiles, apparel, furniture and other light manufacturing. The textile industry is almost gone from the US while there is significant auto parts and assembly work still done here.
I think facts would show that heavily unionized industries in the US have lost fewer jobs due to relocation to cheap labor nations than non-unionized industries.
>>Probably the biggest issue we need to deal with is the Obama Administration’s demonic plan to kill job opportunity and turn working class Americans into welfare slaves by hooking unemployed Americans on welfare payments to make them dependent upon government
It’s not just the Obama administration. It’s the Progressives of both parties who want an educated, but desperate, work force in a relatively stable nation.
Why not just ban abortion and encourage the Americans to have children again by improving their economic prospects?
American families used to have 4-5 children typically in the last century and 10+ in the previous century. No immigrants were "needed", except in the aftermath of the "civil" war.
As if that matters anymore.
I guess they'll be properly polished once in use.
textiles, apparel, furniture and other light manufacturing were industries where workers were replaceable by semi-skilled foreign labor. Technology and investment to build the plants were not too substantial so foreign competitors began lower down on the value chain.
“America needs a focused immigration policy to bring in talented labor to offset baby boom demographic shifts, but it is instead being used to recruit uneducated, illiterate (even in their own language) third world people to become a permanent welfare class to destroy the American middle class.”
The (legal and illegal) immigration of low-skilled workers has decimated what used to be called the “working poor” who have limited schooling and/or work experience. Technology, trade, and deregulation have also adversely affected this group, as well as many in the middle class.
If Hillary is elected, they can kiss their country and jobs goodbye.
BS. Some of the first manufacturing jobs to leave the US were in industries with little unionization such as textiles, apparel, furniture and other light manufacturing. The textile industry is almost gone from the US while there is significant auto parts and assembly work still done here.
I think facts would show that heavily unionized industries in the US have lost fewer jobs due to relocation to cheap labor nations than non-unionized industries.
America and Europe have lost much of the touch labor intensive and hard to automate job functions to third world sweat shops.
Most of those jobs have been lost for 30 years when automation was not advanced enough to be economically practice.
Times have changed and with proper capitol investment many jobs can be brought back to the United States, especially if we team up with low cost labor places such as Mexico to off load the more labor intensive, not automatable job functions while still keeping as much American domestic labor content as possible.
Done properly, the concept works really well.
That was the original intent of NAFTA , but NAFTA has been perverted by Open Borders supporters and politicians paid off to sell out American workers with bad interpretations and implementations of NAFTA
No offense, but I do this for a living and have built cost models where the direct labor costs for a product were only a small fraction of the sales price and increasing the direct wage rate for production labor from Mexico levels to wages reasonable for American workers only changed the selling price by an insignificant factor - until all the stunningly costly overhead multipliers were factored in.
It was not the workers take home wages that were the deal killer, it was added overheads and low productivity that prevented the massive overhead costs from being spread over more production units that killed the deal.
This was especially the case when the manufacturing required significant capitol investment on the part of the manufacture and all of the massive list of disincentives that business owners must deal with kick in.
Sorry if this does not fit into your world view, but it is the case for many, but not all, business cases for deciding on domestic or off.
Being a production manager for large American manufacturer can be a surreal, Kafkaesque experience and a demoralizing exercise in frustration.
It is especially so in the case we see here - Rexnord bearings.
A modern, high tech bearing manufacturing facility is a capitol intensive investment with a high degree of automation requiring a smaller but highly skilled, trained and educated workforce. As such, it should be an excellent business case for domestic production
But setting up a new high tech, automated bearing production facility is a huge capitol investment so the major disincentives for investing in American production kick in and bearing production often requires operations such as plating and coating lines and the use of cutting fluids which American environmental and SHEA regulations have made deal killers from just a cost and and approval time basis alone, not to mention the long laundry list of other obstacles and concerns .
Bearing production should be an area where American workers should be able to compete economically, as they do in other high cost to manufacture locals such as Germany. The fact that Rexnord has chosen to relocate is ominous in this regard and should be a cause for grave concern for Americans .
One reason for Rexnord's departure is to be closer to the majority of it's it's customer base in Mexico that has been relocated from the United States, which should be a cause for grave concern for Americans.
Would be just too bad if the place they were planning to move to in Mexico went up in flames and the owners got phone calls warning them they wouldn’t enjoy their newfound ‘savings’ very long.
A problem is, the more automated factories are also being established in cheap labor nations. Your notion is the same as all those who told us twenty or thirty years ago that we shouldn't be concerned about the loss of all those manufacturing jobs. Americans would be retrained for the high-tech, high-paying jobs of the future. But the new high-tech jobs were mostly located in cheap labor nations as are the new, more automated factories.
We've had threads at FR about how, already, of US families in 20% of them no member is employed. Other studies show that 20% of US heads of household are on one or more of the government's, means tested poverty programs. We now spend more than a trillion per year on those poverty programs. That's the 'payoff' for all these trade policies that have been forced on Americans in the past. - And that's also indicative that our real unemployment rate is around 20%.
As long as US firms can produce in cheap labor nations and send their output to the US for sale with little or no tariff, the giant sucking sound will continue and even increase. You're just parroting the latest BS schemes that promise to address the problem, but will not because the cost of direct labor and the labor contained in factory inputs is so much cheaper compared to the US.
Right and it isn’t $3.00 an hour. I believe these jobs like the Ford and Carrier jobs are going to Monterrey Mexico. Google it, google images for Monterrey. It is very large, very modern and very populated by Mecpxicans and many people from other countries. You couldn’t live there on $3.00 an hour. Folks need to quit thinking of Mexico as completely third world, some parts yes but a lot, not anymore. Starbucks on every 10 miles in some areas. The crap of Mexico comes here illegally. The nastiest illegals are coming from further south, south of Mexico’s border.
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