Plant closing

[MessickFarmEqu]

I am also local to belville. The word is that the reason these plants where closed is because the facilities where aging and it was more cost effective to move those operations into more modern facilities rather than renovating the old factories.

 

[charlesw]

Presently over 50% of the GDP of China is sold to Walmart!

Interesting statistic. I don't suppose you have a source for that... I found quotes of 1% and am, personally, much more inclined to believe them.

 

[Dusty]

Interesting statistic. I don't suppose you have a source for that... I found quotes of 1% and am, personally, much more inclined to believe them.

I am not able to find the article at present, and it might have been on one of the on line economic websites that I read, or Forbes, Wall Street Journal, etc.. If and when I find it, I will post the information.

 

[AndyM]

Interesting statistic. I don't suppose you have a source for that... I found quotes of 1% and am, personally, much more inclined to believe them.

I am inclined to believe one percent may be sold directly to Walmart, while much more than that is sold to other companies, who then sell to Walmart.

I know of companies who outsource billions of dollars of manufacturing to Chinese companies. Walmart buys very little of it from the Chinese manufacturers, but through the American companies that own the products.

So Dusty's remark could be more accurate by saying-
"Presently over 50% of the GDP of China is sold through Walmart!"
I don't know... someone here might know for sure.

 

[charlesw]

No problem... I am still very interested. Having taken an econ course or two, well, it doesn't seem possible.

 

[MikePA]

Presently over 50% of the GDP of China is sold to Walmart!

According to the 2006 CIA Fact Book;

2005 China GDP - $2.225 trillion
50% of China's GDP = $1.1125 trillion
2005 China Total Exports - $752.2 billion

Therefore, the aforementioned 'fact' that 50% of China's GDP is sold to Walmart is more than a litttle questionable.

 

[AndyM]

Thanks, I knew someone would have the correct numbers.

The aforementioned 'fact' that 50% of China's GDP being sold to Walmart is bogus.

Well, that was tactful.


Happy Thanksgiving everyone!

 

[MikePA]

Thanks, I knew someone would have the correct numbers.

Well, that was tactful.

Happy Thanksgiving everyone!

I edited my post to add more tact. Although bogus is a perfectly good word.

–adjective
1. not genuine; counterfeit; spurious; sham.

 

[Dusty]

I'm only human, and I might have remembered the "fact" incorrectly.

 

[Kubotasrking]

I am also local to belville. The word is that the reason these plants where closed is because the facilities where aging and it was more cost effective to move those operations into more modern facilities rather than renovating the old factories.

I work for a US manufacturer who has closed 10 plants in 10 years. Not one of those plants was replaced w/ an offshore plant. What has happened in our case is capacity boosts and automation have driven up production levels, causing continued to operations in non-automated plants to drive up cost, thus causing consumers to purchase another company's product. CNH is attempting to survive in an extremely competitive environment.

My thoughts are with those whose jobs are moving, and I hope that they and their families find better jobs in their locales. I'm also certain the folks making this decision for CNH struggled mightily with it for the same reasons we do.

 

[jwnge]

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.

The Racine foundry and tractor plant closed a few years ago. Where they were on Lake Michigan is now just a large bare piece of land. They moved into a newer building where they have produced transmissions for years. The plant is in Sturtevant a few miles west of Racine and now produces the CaseIH and NH tractors there.

 

[oscer]

My thoughts are with those whose jobs are moving,

That's what I was thinking. I talked to one of them at Thanksgiving dinner he's probably employed here untill August then 18 months in Nebraska to qualify for his pention. I guess it could be alot worse if you think about it.I know I'm thankful for my job on this fine Thanksgiving evening.

 

[CurlyDave]

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

What CNH tells newspaper reporters now and what actually happens two years down the road can be entirely different things.

Saying that the jobs will be relocated within the US is a lot easier than saying that they will move overseas.

"We will offer outsourcing programs and will help them with severance packages."

You notice that they didn't say any current employees would be offered relocated jobs at the new facilities. Sometimes what they don't say is more important than what they do say.

 

[floridahay]

I think what CurlyDave said is exactly right. What these companies say now and what actually happens down the road are very different things. I can remember back in the early 80's when International Harvester was about to file bankruptcy that they ran ads in all the farm magazines denying the rumors and saying how secure they were. I think that this actually created more suspicion about their plight than if they had said nothing. From what I hear and read there is more and more speculation that CNH may sell of the New Holland division and concentrate on the Case name and dealers. I can remember the late 80's when all the farm equipment companies were merging and going out of business.

 

[oscer]

Yea,I remember the IH merger as well. I worked for an IH dealer and lost my job as a result of it. The dealer was located right across the street from the NH plant thats closing. My wife (we weren't married yet) got laid off from NH,and I got laid off in the same month.We were both unemployed on our wedding day,but everything works out in the long run.

 

[whitetiger]

I think what CurlyDave said is exactly right. What these companies say now and what actually happens down the road are very different things. I can remember back in the early 80's when International Harvester was about to file bankruptcy that they ran ads in all the farm magazines denying the rumors and saying how secure they were. I think that this actually created more suspicion about their plight than if they had said nothing. From what I hear and read there is more and more speculation that CNH may sell of the New Holland division and concentrate on the Case name and dealers. I can remember the late 80's when all the farm equipment companies were merging and going out of business.

Only problem with that little rumor is the fact that of all CNH products 200 HP and up tractors is all of the Case line that is left. Also the Case skid Steer is a different machine than NH. That would not leave much for Case to market now would it.
Also, New Holland is is the division that bought Case, not the other way around.

 

[dgl24087]

I can't imagine selling the New Holland name off with the brand recognition in hay and forage equipment. Also, I see far fewer Case dealers than NH, most of the old Case dealers still around are now McCormick dealers.

 

[John_Mc]

I'm only human, and I might have remembered the "fact" incorrectly.

Perhaps what you read had to do with the percentage of China's EXPORTS that end up at Walmart, rather than their GDP? Even 50% of China's exports seems like a lot to me, but I suppose it's at least conceivable.

I'd love to see the article, if you come across it. That statistic would be interesting to know.

John Mc

 

[jinman]

Perhaps what you read had to do with the percentage of China's EXPORTS that end up at Walmart, rather than their GDP? Even 50% of China's exports seems like a lot to me, but I suppose it's at least conceivable.

Disclaimer: The comment that follows is completely tongue-in-cheek.

Okay...so we close down Wal*Mart and Northern Tools and China will implode on itself. Right?

Or maybe I should have said that if you remove all the Made in China stuff from Northern Tools, all they would have left in a store is the echo of an empty building.

 

[john_bud]

You guys have sure posted some interesting things on jobs moving to China. But, did you know that China is losing new plants due to their skilled labor costs being too HIGH! True, latest industry trend is to move plants to India instead of China or other Asian countries. Skilled labor in China is now in the "job jumping" phase with electronics engineers moving to new jobs for a 100% bump in pay. (Up to about what Walmart pays the guy at the door...minus all health care, vacation, OT, safe working environment, etc).

Oh, yeah you do know that many CAT scans, X-rays, MRI's are e-mailed to India for a doctor to evaluate and send results back for a call to the patient in the morning. Think about it, if they can outsource medicine what's next?

jb