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Farmall & IHC Tractors Discussion Board

Re: the downfall of IH


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Posted by Dave NE IA on December 02, 2005 at 10:51:11 from (12.214.14.245):

In Reply to: the downfall of IH posted by Mikey on December 01, 2005 at 21:38:44:

I sure should not take sides, but a friend of mine has a old girlfriend that worked at DEERE in Dubuque---in accounting, she claimed that only 12-13% of the tractor cost is labor. This I might point out is the plant that pretty well makes the construction end in the later years. I would be somewhat curious what the managment portion is. Many of my friends worked at Deere, and if anyone thinks efficiency has any part of the production line may need a second look. Yet Perhaps it could be standard for industry overall, I do not have the information to compare. The workers have in the past been the extra high wage / benifit jobs in our area. They always ask WHO could posably afford these machines we are making ---well they ask that before you criisize that you compare this website---- http://www.ewg.org/farm/top_recips.php?fips=19043&progcode=total ---NOW before anyone starts on me 16 of this 20 on the first page (type in your county / state if you like)are very good friends and I do work for about all of them--first off their is deception as to some are actualy two names but only one family, yet if you look farther down the line their names are hidden and more benifits paid to the same family again. They do complain about high labor prices, but they buy at least one farm every year or two. They have their own semi's to haul the grain, get very big discounts on corn / fertilizer etc. And actualy put the small farmer out of the picture, as well as many of the small businesses in our county. Like I said they are my friends--- most have all new equipment, many new houses, new pickups that are not intended for actual farm work as most of us think about. Their vacations are often and expensive. Many do work hard in early spring, and fall, probably not as hard as 90% of the employed people in our area ---but boy they have little to do the rest of the time and a lifestyle far above any JD worker. My tax dollar at work is what I tell them.

I just talked to my friend on the phone he says he thinks the JD labor cost is more like 9%, but he can not remember perfect either. IH in our area had pretty good dealers, and the tractors / machines were pretty good on many models. So actualy it just about had to be the upper end managment. Competition plays a big part as we all know, yet how can any of us not look at a very big issue--just good or bad luck for the unseen future has made us all money as well as lost us money. Dave NE IA


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