Deere to *CLOSE* Welland, Ontario, factory and transfer production ...

[Ichabod]

FYI:

Deere to close Welland, Ontario, factory and transfer production to other facilities

 

[Scooby074]

Wow, another 800 good paying jobs gone. I hope the best for the affected workers and their families in this rough time.

 

[Nuru]

Ditto on the hope. We gotta stop losing jobs in NA!

 

[dmp437]

The jobs aren't being lost, they're being transferred to other plants. The UTV work is going to Wisconsin and the Loader/Cutter work is going to Mexico. Canadian labor is among the most expensive in the world due in part to high taxes of various types. Ford and GM are also slowly getting out of Canada for the same reasons. Deere is looking to maximize returns for shareholders and increase plant utilization by putting four plants worth of work into three (Horicon, Santillo, and Monterrey). Looking at the long term this is a good thing for Deere.

 

[Scooby074]

Looking at the long term this is a good thing for Deere.

Tell that to the people of Welland, who were loyal to Deere all those years.

2/3 of the jobs are going to Mexico, its only a matter of time before Deere sends more south of the border, but i bet these will be US jobs lost next time around. Will that be a good thing for Deere too?

 

[jsboening]

I'd like to see the stats on how many John Deeres are sold in mexico.

 

[CinderSchnauzer]

The jobs aren't being lost, they're being transferred to other plants. Looking at the long term this is a good thing for Deere.

Given all the jobs in MI that have been "transferred to other plants" there seem to be a LOT of companies getting in on this "good thing".

I wonder to what extent the enthusiasm is shared by the MI workers no longer employed?

 

[vsteel]

Tell that to the people of Welland, who were loyal to Deere all those years.

2/3 of the jobs are going to Mexico, its only a matter of time before Deere sends more south of the border, but i bet these will be US jobs lost next time around. Will that be a good thing for Deere too?

I am not sure how it works for Deere, but I know in the semiconductor industry its hard to stay in America. (yes, that is my "real life" job outside of playing with the tractor.) We want to build a plant in America and you have to pay all sorts of taxes, fees, and fight to get anything put in. For example the company I work for, they have an offer from the Singapore government to build another fab there. They will give the land to the company, build the building (about 1 billion to put that up) and no taxes for the first 5 years. They will also pay for all of the training for the workers there and cover all worker costs for the first 2 years.

The company I work for is trying to build here and they are fighting to keep the taxes from being raised even higher. There are no incentives to build here, no tax breaks, no gifted land, nothing. They are still trying, but its hard.

I don't agree with jobs going overseas, but I can see how it could be tempting to a company. You also have to consider you are in a market where you are competing with companies that have a lot of stuff manufactured overseas. You can either find ways to dramatically cut costs or join them or separate your product with quality so people will pay the higher premium. (I personally know of a couple of companies that my friends work for that sent some things to china to manufacture. When you see the crap that comes off the lines its not so lucrative anymore. One company is trying to get out and the other finally had to designate their 3 bottom simple products to the china operation and give it another name and that is the "economy" line. The good stuff is still made in America and you have to pay the quality premium. Which is ok, problem is all of the people who want the cheap crap.)

Sorry to ramble on, but that is a topic that strikes near and dear to my heart.

 

[nmu98]

Given all the jobs in MI that have been "transferred to other plants" there seem to be a LOT of companies getting in on this "good thing".

I wonder to what extent the enthusiasm is shared by the MI workers no longer employed?

I can tell you that many people in Michigan will no longer buy GM cars. The area I live in used to be full of GM plants and workers. Now I drive by them and see the land full of brush and grass. They have just left. We still have a few plants, Steering gear in Bay City and an Aluminum casting plant in Saginaw, along with the Delphi plant in Saginaw, but the parking lots are 1/4 full.

The good news is that most of the people out of the jobs are older. We have had a ton of people get buyouts and that has worked well for many. But, we also see alot that lived far beyond thier means, and when it fell, they lost everything. I live in an nice area that has about 250K house around. All the property os over 2 acres per house. Right now, we have 2 repos within a 1/4 mile.

The city of Saginaw has all but went under with houseing selling there for about 10K a house. But I am unsure if that has much to do with the plants closing.

Its a different way of life in mid michigan these days.

 

[WilliamBos]

I'd like to see the stats on how many John Deeres are sold in mexico.

I agree 100%!! Whether it is Canada, or USA I hate to see jobs leave, or as they say get relocated. All they care about is profit. And it does not matter whose expense it comes at.

I hope the green sales in the affected area drop quicker than the Titanic, give Mother Deere something to think about.

Our Governemt needs to quit taxing jobs to death. If they don't this is only the beginning.

I wish all the best to those affected by this.