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Discussion in 'Economy' started by SixofNine, Feb 12, 2016.

  1. SixofNine

    SixofNine Jedi Sage Staff Member

    In Indianapolis, Carrier announced to its employees that it's moving to Monterrey, Mexico.

    What's interesting is that it will take place in phases starting in mid-2017. It's nice of management to be transparent enough to let its employees know well beforehand, but I wonder what this is going to do to quality control. :whistle:

  2. Andy


    I used to work for an HVAC wholesaler in AZ many lifetimes ago, Carrier is a huge chunk of the market, this is a big hit to the whole "Made in USA" philosophy, I seriously have to wonder if they thought this out real long term?

    "It's just business" translates into "The CEOs want more cash in their pockets and need bigger Yachts so sorry you American scum, we can get it made in Mexico for pennies on the Dollar and pocket the difference, Good luck in your new careers in an already shitty job market with high unemployment"

    I do know this, I am shopping to replace my heater in a year or so and they just made it much easier to choose a Lennox to replace my ~10 y/o Carrier that's going tits up already.
  3. ethics

    ethics Pomp-Dumpster Staff Member

    This is where corporate America loses me. The whole investor model and stock market is one of the most horrific impacts on this country's Capitalism.
  4. ShinyTop

    ShinyTop I know what is right or wrong!

    Oh, what a tangled web we have. Unions come into being because tycoons wanted to pay squat while workers spent long hours on the job. Unions gained strength and in times of prosperity the country flourished. When foreign companies began competing US companies wanted to cut back on union demands but unions would have none of that. Unions are not near as powerful as they once were but the right of every American to at least a middle class life is just as powerful. Until the middle class is all but gone. So now the politicians promise everybody everything. And one of the groups they promise is the group that donates the most money, the tycoons. So income disparity is huge and will only grow more so as manufacturing jobs leave the country. But we all want the cheap goods and the foreign made goods fill that need.

    I often feel we are so far down the road that it is too late to recover. I have seem some say that the country should divide but the political divide is not geographic but divides large cities from rural and suburbs. Look at the red and blue on election maps. And if one has the money to decide the change to foreign manufacture one has the money to live anywhere or everywhere at the same time.
    SixofNine, Allene and ethics like this.
  5. Arc

    Arc Full Member

    It will be interesting to see what happens in the future when the "end-of-the-line" point for labor costs is reached. It's no surprise to anyone that labor is the single biggest cost for most large companies or enterprises. The fact that much of the labor cost often fails to produce revenue at any meaningful level aggravates the situation. (And people wonder why company’s CS reps are often the pits to deal with?)

    We first started to export our labor sources to Japan. (Hey, I’m old.) But Japan's economy went up and so did its labor cost. So we then moved to a cheaper country. Then when costs there went up we went to yet other countries offering yet cheaper labor. On and on and around and around it goes. Eventually US companies are going to end up with nowhere else to go to cut labor costs.

    What happens then?

    Obviously things have to change. I don't have any solutions. I'm selfishly glad that I don't have to worry about it.

    Free Trade has never truly fairly functionally existed as far I'm concerned and capitalism if not always certainly now feeds on itself to thrive with the folks in the USA capitalistic working force going down with the USS Capitalism if it sinks. What the folks in command of the ship fail to grasp is without a properly functioning crew or with one in mutiny the ship is dead in the water.
    Allene likes this.
  6. ethics

    ethics Pomp-Dumpster Staff Member

    You nailed it.

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