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ambient, I'm in the same line of work (albeit mfg mgmt), and we increased operating profit substantially by in-sourcing production back from Asia. Its called leveraging overhead by increasing our plant utilizations factor. We operate 100% RTW, so we control our cost structure very well (high tax or utility or labor locales -forget about it!). Now we are not offering IT services, but rather engineered products, as well as assembled, low tech products. IT has been ripe for offshoring for years now.
Formerly, I worked for a Tier 1 auto supplier who had been all D-3 for 2/3 of its life. The labor contracts caused the demise of that industry. These clowns at AA were crazy.
Location: Currently I physically reside on the 3rd planet from the sun
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Originally Posted by summers73
Concessions? Heck no! Cut off your nose to spite your face is the preferred union approach.
American Axle closing last plant here - Business - The Buffalo News (http://www.buffalonews.com/business/article526909.ece - broken link)
These socialist BTurds believe workers "own" part of the company when they take none of the risks. On one had it serves the greedy jerks right, on the other it is too bad our hostile business environment is driving more jobs offshore.
Concessions? Heck no! Cut off your nose to spite your face is the preferred union approach.
American Axle closing last plant here - Business - The Buffalo News (http://www.buffalonews.com/business/article526909.ece - broken link)
(Cut off your nose to spite your face) It's called, biting the hand that feeds you.
UNIONS are killing American jobs.
Prime example of what happens when you raise taxes on the rich. The rich are not Dumb. Governor Of New York found out the hard way, when his state raised taxes on the rich. Several millionaires simple packed up and moved to Texas or another state. Leaving everyone else in NY picking up the tab, without jobs.Real SMART, huh.
Obama did the same thing, by giving good American jobs to Canada, when he had his new bus built there( part of his new jobs plan coming soon, as he begs for more hand outs from his voters).
Maybe Verizon in Boston (on-strike or was on-strick) should also reachout to India for Operators. Or sub contract. By sub contracting, illegal immigrants get a job; and the company is not responsible( since Obama is pushing his amnesty program without congress).
More of Obama's "Change You Can Count On."
Do you miss President Bush yet? I do.
At least Boeing didn't leave the country, they moved to South Carolina to avoid Union strikes, etc.
I remember awhile back Girl Scouts was thinking of buying their uniforms from overseas. The Obama administration, Pelosi and Reid company got mad at the Girl Scouts Association.
I wonder what the the Girl Scouts Association would think, when they find out; Obama gave the contract to Canada for his Bus?
NOTE: NLRB sued Boeing for building in South Carolina
ambient, I'm in the same line of work (albeit mfg mgmt), and we increased operating profit substantially by in-sourcing production back from Asia. Its called leveraging overhead by increasing our plant utilizations factor. We operate 100% RTW, so we control our cost structure very well (high tax or utility or labor locales -forget about it!). Now we are not offering IT services, but rather engineered products, as well as assembled, low tech products. IT has been ripe for offshoring for years now.
Formerly, I worked for a Tier 1 auto supplier who had been all D-3 for 2/3 of its life. The labor contracts caused the demise of that industry. These clowns at AA were crazy.
I get what you're saying - yes, circumstances vary from company to company and sometimes things can be more advantageous in the US. All I'm saying is that your specific circumstance aside, the offshoring trend has been clear and pervasive. There is nothing inherently true from a trended multi-industry perspective about plant utilization factors necessarily being higher or lower in America vs. Asia - so the evidence you're providing is specific to your company's present circumstance. But there is a very well-defined multi-industry trend of many millions upon millions of manufacturing and remote service jobs having gone overseas over the past decade+, and it wouldn't have happened if there weren't a whole bunch of dollar signs involved. And I really don't think it's all due to unions, either.
ambient, The big jobs drain offshoring happened over ten years ago, and clothes and textiles were going offshore, why you ask..simple. 40' container to mid-America w/duties, shipping fees, brokers, etc..cost the same 8-12k , so the better it nests, the easier to justify sending it offshore. Very few corps have not made their sourcing decisions, which is the reason efficiency (robots are getting much better) is now going to eliminate more jobs than add'l offshoring.
GE is bringing stuff back, and no doubt, utilization diving killing operating profit is their reason, no matter what they say in press releases.
BTW, who cares what utilization is in Asia..its about leveraging existing fixed costs here. That is how we raised operating profit. While Asian costs were sometimes lower looking at standard costs, they were not lower looking at incremental costs. Since we had obligations in our overhead structure we could not get out of for many years, incremental is what mattered. Some stuff went offshore too quick, profits dove cause that overhead did not go down, and slowly, people at our corp wised up.
Now we do not mfg in Asia or even partner,so we never were enjoying the total savings experience, as brokers and manufacturers took their profit, too.
Screw em, I remember back in 08 when they went on strike in MI. Newspaper did a front page article on one of the workers (not even a supervisor) and he's kicked back in his 300k home, 3 SUV's, couple of snowmobiles, his and her Harley's, 52" plasma TV. About 38 years old, high school education and too good to work for $18.00 an hour.
What's the difference between doing a repetitive task of say standing at a machine making threaded holes or emptying the fry basket at McGrease? Not a heck of a lot if you ask me. They'll ride out their 99 weeks of UI benefits and reality will set in.
And this isn't a union problem??? How is that? How can we compete in the world and still have the highest wages in the modern world? That whole thought process is a damn oxymoron!
Well now, that's a good question, the majority of our citizens are not well educated, and are thus limited in the kinds of jobs they can do - jobs that are frequently outsourced or mechanized/automated (more frequently, that goes for college jobs, too).
What's the solution? Accept that we're going to have a higher unemployment rates, or that our standard of living is going to fall while the rich get richer - for some reason, neither sounds like a great idea.
Well now, that's a good question, the majority of our citizens are not well educated, and are thus limited in the kinds of jobs they can do - jobs that are frequently outsourced or mechanized/automated (more frequently, that goes for college jobs, too).
What's the solution? Accept that we're going to have a higher unemployment rates, or that our standard of living is going to fall while the rich get richer - for some reason, neither sounds like a great idea.
You've stumbled across the biggest contention about this issue. Who holds the responsibility for these citizens not being well educated. I say the individuals are responsible and should not be rewarded by receiving union-negotiated benefits that compensate them for a value they do not deserve. Certainly the companies they work for are not responsible for their lack of education, nor taxpayers.
You've stumbled across the biggest contention about this issue. Who holds the responsibility for these citizens not being well educated. I say the individuals are responsible and should not be rewarded by receiving union-negotiated benefits that compensate them for a value they do not deserve. Certainly the companies they work for are not responsible for their lack of education, nor taxpayers.
Some jobs are too specialized for a person to receive the necessary training any where else but at a trade school or junior college that works closely with the area's manufacturing base. It's in the taxpayer's best interest to offer classes that are tailor-made to suit the jobs that need filling in the area. If those jobs go unfilled, then the local economy suffers. People need to know, for example, that not all auto factory jobs are equal. Many do require a great deal of education and training to build and design the dies and the tools necessary to make the parts a particular factory produces. In the auto industry, the tool and die departments are always working on the upcoming model changes. Other factory jobs take a great deal of training to keep the machinery involved in punching out parts functioning properly and to make changes in the robotics for new designs that come along on a regular basis. People working in tool and die departments and stamping plants are called "skilled trades" for a reason. When TV news shows an auto factory clip, they always film unskilled production, never the skilled trades in auto plants, but when it comes to quoting benefits and wages, they always quote the top tier of UAW wages (skilled trades) instead of those of the production workers that most people have been programmed to visualize when thinking of an auto worker.
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UNIONS are killing American jobs
