Posted on 06/15/2024 1:47:04 AM PDT by Libloather
Tupperware Brands announced it will be closing its South Carolina factory — the company’s last remaining plant in the US — and laying off more than 100 workers.
The iconic plastic food container company will shift all of its manufacturing operations to Mexico, where many of its products sold in the US and Canada are already made.
The shuttering of the facility in the small town of Hemingway will result in the layoffs of 148 employees, according to the company, which is headquartered in Orlando.
Layoffs are set to begin in September with a closure date scheduled for January 14, 2025, WCBD reported.
“It’s important to note this decision is not a reflection of the performance of the Hemingway team,” Tupperware told the outlet in a statement.”
“We appreciate each of our valued team members and the many years of service they have dedicated to our salesforce and to the Company.”
The Hemingway plant, Tupperware’s sole manufacturing site in the US, was sold in 2023.
Eligible employees will be offered severance packages and early retirement. The company also pledged to help connect them with other companies for employment.
(Excerpt) Read more at nypost.com ...
Robots will make this entire discussion obsolete.
The Mexican workers will be replaced in the end.
Economics was called “the dismal science” because it has very bad news to deliver.
The market takes no prisoners—and protecting local producers is a holding action at best. That does not make it bad policy, but everyone should be honest about how it will end.
That is not a justification for stupid trade policies like NAFTA which appears to have been designed to destroy American producers as quickly as possible.
a NAFTA name-change doesn’t remove the corporate incentives that drive firms like Tupperware to Mexico. But I’m certain you, as a Mitch McConnell conservative, have the real reason why Tupperware moved South. Please explain if you can.
Not really. Those robots will have to be designed and manufactured somewhere, and techs will be needed to run them, program them, and maintain them. There will be robots for that? They'll need to be designed, manufactured, and built somewhere too.
There question is where?
Besides, if we're all replaced by robots, who's going to buy their products?
Manufacturing is just part of any economy—but it is ideally suited for robots.
Humans will have plenty to do—but manufacturing robots may not be one of those things.
;-)
Just don’t buy products from companies that lay off US workers and move to Mexico to hire people?
Preliminary Full Year 2022 Financial Summary* • Net sales were $1,305.6 million, a decrease of 18% year over year (or 14% on a constant currency basis) • Gross profit was $836.4 million, or 64.1% of net sales • Loss from continuing operations was $28.4 million • Diluted (loss) earnings per share from continuing operations was $(0.62) • Adjusted diluted (loss) earnings per share (non-GAAP) from continuing operations was $0.46 • Adjusted EBITDA (non-GAAP) from continuing operations was $124.0 million • Consolidated Net Leverage Ratio was 4.88x at December 31, 202
When we reenlist im going to teach them baseball
Only ONE plant left. That is amazing. I’ll bet almost every house in the US has a few pieces of Tupperware in the cupboard.
The cost of labor for any mass produced “widget” is pennies on the dollar no matter where it is made. That is the whole point. We are talking about degrees of the cheapness of labor.
You can’t import prosperity.
Tupperware isn’t manufactured. Just put two pieces in a dark cabinet and it breeds.
L
The defenders of globalism here on FR will defend this abomintation to the end. If Biden started a 25% accross the board tariff today, and congress backed it up, I’d vote for him.
Always finding pieces with missing tabs, lids, handles.
I am sure now that Paco from Juarez makes our Tupperware the prices for Tupperware will drop 50% to 75% retail!!! /sarc
But we brought in all those illegal central Americans for you corporations wanting cheap labor!
Now what do we do with them?!
Yep. You can buy plastic food containers at the dollar store. Made in China, no doubt, but work just as well.
And when they wear out, you chuck them in the trash and buy new ones, for a dollar.
This abandonment of the USA for “profit” can only end in hell for us.
sometimes people do things because it is easier, even though it is less profit.
Not all business decisions are for profit reasons. But we would like to think so.
I have lots of those Rubbermaid containers, but the only Tupperware I have are a pair of mini hourglass salt and pepper shakers that I bought from a TW sales lady at a booth at a local home and garden show. I bought them because my parents had the full size pair which could hold a year’s (3/4 cup) supply of salt and they were cute.
This company, not public, desperately wanted to take advantage of the ‘Chinese miracle.’ They spent a year and a half flying to China and making the arrangements to move all manufacturing there. They banked on a 40% decrease in over costs.
They never got that, and, in fact, their costs went up to the net same as what they had in the US. How was this possible?
1. Labor costs skyrocketed, as other companies stole their workers away. Training constantly new temporary employees and having to continually increase wages to keep people and attract new ones was a huge cost.
2. Quality sucked. They had to hire more QA people who still didn't do their jobs.
3 Travel costs and dealing with the Chinese government added all sorts of overhead.
Now, imagine that the Chinese government owned the majority of their plant and everything else, along with most all suppliers this company now had to use. What are you left with?
I left as this change was just beginning and got this information from the very CFO’s area that had pushed for the China move.
That CFO said there was no net benefit in costs, and a lot more hassle, just a year and a half later.
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