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.