Plant closing

[oscer]

Hi folks, I live about 10 miles South as the crow flies from the NH plant in Belleville Pa. We all heard a week or so ago they are shutting this plant down,along with another one somewere else. NH has been a staple in the local economy for years. It came as a suprise to me. I guess it's the "new American way". Lots of folks I know that worked there were able to retire at 55.I'm told 450"permanent" employees and some temps worked there.I work at a local steel mill,I always thought we would be the ones to go,not NH.

 

[Dusty]

With the global economy moving into full swing, it is hard for a manufacturer to want to pay American wages when they can go to China and pay 1/10th of what it costs here in the USA to have a product made. The cost of transporting that product back to the US is not that great of an expense when you have those type of labor savings. I have heard that even Japan has sent manufacturing to China because it is so much cheaper to produce goods there verses Japan. Today, China's labor costs are like the US labor costs were in the 1930's by comparison. I hate to think this, but with all our manufacturing facilities closing down, I don't know what we would do if we ever had to gear up to fight another war like the Second World War. It was our peacetime manufacturing facilities that were able to quickly switch to a wartime facility that made the difference. At one point during the war, we were able to turn out one ship per day. Today, we don't have that amount of skilled labor, nor do we have the machinists and factories to do anything close to that. The Chinese communists don't have to defeat us politically, they are doing it to the world financially. The only thing that we still manufacture in the US that is exported extensively to China is tobacco, and if they can find a way to get the American tobacco leaves to China economically, they will probably manufacture cigarettes there.
Dusty

 

[MikePA]

I've read all the articles I can find about this CNH plant closing and not one of them mentioned CNH is moving the manufacturing to China? Where did you read this?

 

[dknarnd]

I have been in manufacturing for over 25 years and I have seen the jobs leave the states in that time. Now I am seeing that for strictly precision machining jobs allot of that work is staying in the states because the cost of a skilled setup person and operator abroad is rising significantly. Another reason for the lack of quality products coming from abroad is because of the condition of their equipment. I have just recently liquidated 6 old machines from the factory that can't hold tolerances at all, where do they go....India and South America!

 

[jinman]

I've read all the articles I can find about this CNH plant closing and not one of them mentioned CNH is moving the manufacturing to China? Where did you read this?

Mike, have you read what is manufactured at the CNH plant that is closing? Is it haying equipment or construction equipment? Are any NH tractors made in the USA besides the Boomer assembly in Georgia? I guess I need to do my research....

 

[MikePA]

Mike, have you read what is manufactured at the CNH plant that is closing? Is it haying equipment or construction equipment?

None of the articles mentioned specifically what's made there. Here's the only quote that gives a hint, "The agricultural equipment manufacturer announced last Wednesday to its 450 employees it would be closing its Belleville facility within the next year and a half."

 

[Gator6x4]

Here is some information.


CNH to Close Belleville Plant
Submitted by Editor on Tue, 10/31/2006 - 11:40am.


DAVE LEFEVER
Editor
LAKE FOREST, Ill. Citing the need "to accelerate cost reduction activities," CNH (Case New Holland) last week announced plans to close its agricultural manufacturing facilities in Belleville, Pa. and Goodfield, Ill.
The Belleville closing will occur in phases over the next year and a half, according to Amy Kesler, CNH spokesperson for the corporate office in Lake Forest, Ill.
About 450 people work at the Belleville plant, where pull-type hay equipment, such as mowers and rakes, and self-propelled windrowers and bale wagons are made.
CNH plans to move the pull-type hay equipment manufacturing from Belleville to its plant in New Holland, Pa.
The self-propelled hay equipment production will move to a facility in Grand Island, Neb., "closer to markets where it is consumed" in the West, Midwest and Canada, Kesler said.
CNH has 13 manufacturing facilities in North America and 39 globally, according to Kesler.
Taken together, the Belleville and Goodfield, Ill. plants employ 650-675 people, about 7 percent of CNH's workers in North America and about 3 percent of the company's workers globally.
"We understand that this will impact our employees there," Kesler said. "We will offer outsourcing programs and will help them with severance packages." The plant closings, she said, will "ultimately create value for our customers."

 

[MikePA]

CNH plans to move the pull-type hay equipment manufacturing from Belleville to its plant in New Holland, Pa. The self-propelled hay equipment production will move to a facility in Grand Island, Neb., "closer to markets where it is consumed" in the West, Midwest and Canada, Kesler said.

The stock answer of 'all the manufacturing jobs are moving to China' doesn't apply.

 

[Redneck_Randy]

The stock answer of 'all the manufacturing jobs are moving to China' doesn't apply.

May not be the case here but it is happening all over the USA. An example for you. Long time based comany here decided to move it's production line oversee's. Over 1800 out of work now. Because of this I will NEVER buy there product again. What company am I talking about, Zero Bomb Company (IE Zebco) The severance packages they recieved was nothing but pennies.

 

[Dusty]

I've read all the articles I can find about this CNH plant closing and not one of them mentioned CNH is moving the manufacturing to China? Where did you read this?

I never said that NH was going to China. My comment about China was in relation to the closing and why so many of our manufacturers are closing the doors. I will say that it is a fair assumption that they will be going to China for manufacturing if they are closing plants in the US, either that, or they are going to be going out of business. It might not be this year or next, but it is going to happen. The only thing that will prevent this is if the Chinese economy heats up quickly and the workers start to demand more of the profits. It is unlikely that any labor unions will ever get started in China because of the type of government control that is exerted, so it is safe to say that China will continue to grow economically without any outside influence. Presently over 50% of the GDP of China is sold to Walmart! Generally speaking, today most manufacturing business's that close, either go out of business or move off shore to other countries. The days of moving manufacturing from the Northern half of our country to the Southern half for less expensive labor and manufacturing costs are gone.
Dusty

 

[MikePA]

I never said that NH was going to China.

I was just trying to determine the relevance of your response to the topic of this thread, i.e., CNH closing a plant in PA.

 

[Dusty]

I was trying to determine the relevance of your response to the topic of this thread, i.e., CNH closing a plant in PA.

Without the original news article explaining the entire closing and the company plans, I was left with nothing more than to make generalized assumptions. In this specific instance those assumptions about the reason for the plant closing were wrong, but they are correct in most other instances of plant closings. I thought that was clear in my response, being general in nature. Have I made myself clear on this matter now? Like most threads, we are given a smattering of facts, and the follow up postings are what bring the total facts out and into the open. The same thing is happening in this thread.
Dusty

 

[MikePA]

Have I made myself clear on this matter now?

Yes. In the absence of evidence to the contrary, when a manufacturing plant closes it means the jobs are moving to China.

 

[Tarzan]

Hi Oscar , I'm in central Illinois & I work in a steel mill here. I think the CNH jobs lost here are going to Canada.
Dan

 

[Gator6x4]

Information on Goodfield Ill Closing.


Goodfield farm implement plant closingAssociated Press
GOODFIELD, Ill. - More than 200 workers will lose their jobs next year when a plant that makes farm implements closes in this small central Illinois town, officials said Wednesday.

Goodfield's Case New Holland plant will be shuttered by the end of 2007 along with a factory with 450 employees in Belleville, Pa., according to CNH Global, a Lake Forest-based company that manufactures farm and construction equipment.

The closings will save money by streamlining manufacturing operations, said company spokesman Thomas Witom. Work from the shuttered plants will be shifted to factories with excess production capacity in the U.S., Canada and Poland.

CNH Global announced the move Wednesday while reporting third-quarter earnings that rose 148 percent to $67 million compared to the same period a year ago.

The Goodfield plant, which opened in 1961 and was purchased by CNH Global in 1998, manufactures farm implements such as field cultivators and fertilizer applicators, Witom said. The Pennsylvania plant makes hay balers, wagons and other forage equipment.

Witom said about 80 workers will remain at a product development office in Goodfield, a town of about 700 people midway between Bloomington and Peoria.

Workers, who were told of the pending shutdown Wednesday, will be given severance packages based on their years of service, Witom said. Some could be offered jobs at other CNH Global plants, he said.

"The mood was very subdued and somber. Many have spent many years at the plant and they have a lot of decisions to make going forward," Witom said.

Earlier this month, 17 workers lost their jobs when Cargill announced it would not rebuild a Goodfield pet food plant damaged by a Sept. 2 fire.

Goodfield Village President Ross Hohulin did not immediately return a call for comment Wednesday.

Shares of CNH Global rose 75 cents to close at $26.80 in trading Wednesday on the New York Stock Exchange.

 

[whitetiger]

Mike, have you read what is manufactured at the CNH plant that is closing? Is it haying equipment or construction equipment? Are any NH tractors made in the USA besides the Boomer assembly in Georgia? I guess I need to do my research....

TG's TJ's & TV's are built in Fargo & Racine

 

[jinman]

TG's TJ's & TV's are built in Fargo & Racine

Thanks, Whitetiger. That's just the info I was looking for.

Also, Gator6x4, those news stories sure help to clear up what exactly is happening. CNH is going closer to its market. It still really hurts those who lose their jobs. Hopefully the severance packages and job placement will reduce the severity of the impact.

 

[jimgerken]

If we ever get into a big war and need bombs and tanks, we can buy them cheaper from China. They are so hungry they will probably sell use bmbs even if they know we are going to drop them on their own soil. Kind of changes the way you think of "drop shipping".

 

[kensfarm]

No "Big Name" is going to come right out and say we're off-shoring the mfg. jobs.. not good for customer relations.. but behind the scenes.. it's part of the plan! Not only do they outsource the jobs.. they send the mfg. equipment too!

 

[oscer]

Hey Tarzan, It's good to here that were not the only US of A steel mill left. We came through some tough times lately but things are looking up now I just read a notice tonight that they are investing 8 million in the machine shop in '07. That's always a good sign. The irony of it is,we make wheels and axles for the RR a lot of which are probably used to transport all those Chinese imports across the country.