The New Insourcing Boom

OntarioVanMan

Retired Expediter
Owner/Operator
Someone needs to share this with Whirlpool!

Hats off to Ford, for bringing the Ford F-650 and 750 back and having it made in Avon Lake, Oho, from mexico.

You are Not paying attention.... Whirlpool brought back most of the Kitchenaid lines LAST YEAR!!
 

guido4475

Not a Member
big difference between assembled in America as to made in America.....I can think of NO vehicle that is 100% American made....all have some kind of foreign content

BTW..I was at Ford Flatrock....they were on shutdown for.....drumroll....ANOTHER version of the Fusion brought back from MEXICO..... now the 4-6 and 8 cylinder are assembled in USA...Brook Park over in Cleveland does 1 model as well...don't know if its the 6 or the 8 version...

The Ecoboost V-6 twin-turbo is made in Brookpark. Which, by the way, in the Taurus police interceptor, puts out 385 horsepower, but is capable of 420 horsepower.I wonder what horsepower rating the new Transit will get?
 

OntarioVanMan

Retired Expediter
Owner/Operator
But why are they shutting down the us plants and outsourcing to Mexico? There was a big article in USA today awhile ago about that.

Old news pal...last plant closed was Evensville Ind..a union plant they are trying to shuck the unions...almost complete now
 

Mdbtyhtr

Expert Expediter
The problem with Mexico is so much manufacturing moved there, the competition for labor increased the cost to the point it was no longer attractive. There are also significant issues with executives getting kidnapped for ransom and nit wanting to move there with their families, specifically Monterrey.
 

OntarioVanMan

Retired Expediter
Owner/Operator
The problem with Mexico is so much manufacturing moved there, the competition for labor increased the cost to the point it was no longer attractive. There are also significant issues with executives getting kidnapped for ransom and nit wanting to move there with their families, specifically Monterrey.

That and the people want more for their work....Mexico is a developing country....things WILL get better there....and labour costs will increase....the edge will be gone...the next lowly undeveloped country to take advantage of will be Africa...
 

xiggi

Veteran Expediter
Owner/Operator
Wages in Mexico are no where near affecting labor costs enough to cause companies to move for that alone. Car plant workers still make nothing compared to the us. Actually labor there is so cheap some companies like plantronics have shifted production from china to Mexico.

Sent from my Fisher Price ABC123 via EO Forums
 

OntarioVanMan

Retired Expediter
Owner/Operator
Wages in Mexico are no where near affecting labor costs enough to cause companies to move for that alone. Car plant workers still make nothing compared to the us. Actually labor there is so cheap some companies like plantronics have shifted production from china to Mexico.

Sent from my Fisher Price ABC123 via EO Forums

Pretty close Xiggi....this article even tho 2 years old is an example

Mexico Beats China as Cessna Shows Wages Converge With Shipping - Bloomberg

Under $4.00 an hour.....a NEWER article illustrates the increase in wages from $26.00 a day to almost $40.00 a day in 2 years....

Mexico Takes Center Stage in Automobile Production
 

OntarioVanMan

Retired Expediter
Owner/Operator
"Sometime around 2015, manufacturers will be indifferent between locating in America or China for production for consumption in America,” says Mr Sirkin. That calculation assumes that wage growth will continue at around 17% a year in China but remain relatively slow in America, and that productivity growth will continue on current trends in both countries. It also assumes a modest appreciation of the yuan against the dollar.

The year 2015 is not far off. Factories take time to build, and can carry on cranking out widgets for years. So firms planning today for production tomorrow are increasingly looking close to home. BCG lists several examples of companies that have already brought plants and jobs back to America.
Caterpillar, a maker of vehicles that dig, pull or plough, is shifting some of its excavator production from abroad to Texas.
Sauder, an American furniture-maker, is moving production back home from low-wage countries. NCR has returned production of cash machines to Georgia (the American state, not the country that is occasionally invaded by Russia).
Wham-O last year restored half of its Frisbee and Hula Hoop production to America from China and Mexico

Multinational manufacturers: Moving back to America | The Economist
 
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