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machinery pete
Contributor

Mfg Jobs moving to Mexico - Thoughts?

Last Saturday I shot video at auction in SE Minnesota. A 2006 Polaris Ranger 700 6x6 ATV with only 6 hours up for sale. 2 days before the auction Polaris announced they'd be closing their parts plant in Osceola, WI and moving the operation to a new plant in Mexico, meaning possilbe loss of 500+ jobs from the small western WI community. I just posted a column on the job loss and the auction last Saturday with the Polaris ATV (video included), here's link:

 

http://www.agriculture.com/ag/story.jhtml?storyid=/templatedata/ag/story/data/1274979466099.xml

 

What are your thoughts on U.S. jobs continuing to shift out of the country?

 

Pete

www.machinerypete.com

 

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4 Replies
LINKn8r
Frequent Reader

Re: Mfg Jobs moving to Mexico - Thoughts?

I have many thoughts on the subject.  I'll try to stay nice.

 

I work for a company who has a charter to create 2 jobs overseas for every 1 domestic.  The overall quality is lower, it takes 5x as long to communicate, things get more easily misunderstood, but a <explitive removed> accountant sees less cost thus more profit.

 

At the risk of opening Pandora's Box, I wonder how much of this shift can be blamed on the unions?  Many U.S. manufacturing jobs pay $30 per hour in some cases (assuming a worker has been in the union for a number of years, and gets an annual or semi-annual pay raise whether deserved or not).  Sure, my teenage son might work for minimum wage, but a person with a few year's experience will not.

 

For the companies, it is no longer about delivering a quality product, but how cheap they can do it and still maintain the huge bonuses for execs.  IMHO, the government should tax all domestic employers for every job they transfer/create in other countries.  Make the incentive to keep jobs here.  Get a little tax break for each domestic employee.

 

I can cite a few instances where people flat-out quit buying my companie's products because they get repaired in Mexico.  Personally, I will pay a little extra for something that is domestic versus international.

 

This country needs to get back to its roots of industrialism, manufacturing, and research/engineering.  Before long (if we continue down the same path), the only things left here will be some agriculture (assuming not everyone sells out to some foreign coporate producer), and medical.

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51deeremt1
Visitor

Re: Mfg Jobs moving to Mexico - Thoughts?

Our area of the state of Illinois has been bleeding jobs to Mexico, China, and even Italy for some time now. Not only are the jobs leaving, but the infrastructure, tooling and expertise as well.   Eventually, we can't all work for McDonald's. Maybe then our leadership (political or organized labor) will see the writing on the wall and start bidding wages to be competitive on a world wide basis.   But that is not all, as domestic corporations have to deal with EPA, OSHA, and many other overlords.  To many other issues need to be addressed for a level playing field.

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Red Steele
Veteran Advisor

Re: Mfg Jobs moving to Mexico - Thoughts?

I think moving jobs to Mexico, instead of Mexicans to jobs...is a fabulous idea. But...we should be working on moving the jobs from China to Mexico, not from the USA to Mexico.

 

Lets get national leadership that can stand up for the American people for a change.

 

the other posters before me hit the nail on the head...we need a level playing field...if it takes a tariff to counter OSHA, the EPA, etc. so be it.

Re: Mfg Jobs moving to Mexico - Thoughts?

Well all of you have it right.  Being a person who once worked at that Osceola plant, I have heard it all.  I was laid off almost two years ago having low seniority.  I know others who still works there but as of next September no one will still have a job for Polaris.  This new CEO of the company will have had his job for two years come July.  The previous CEO said he would never move Polaris to another country.  My opinion is that the new CEO just wants to keep his pocket lined just as thick.  The people out on the floor actually working and assembling don't make $30 an hour more like $18-$20 on the top end.  I know it will be cheaper labor in Mexico, but is it worth loosing credibility here?  I am no longer a Polaris fan, and wonder how many other people feel the same way....

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