Posted by Ron-MO on February 11, 2016 at 10:22:28 from (108.171.131.170):
In Reply to: Jobs going to Mexico? posted by Spook on February 11, 2016 at 07:55:44:
Labor costs are a factor, but as others say, not always the only factor. I know the plant I used to work for was part of another manufacturing company that was purchased. The plant I worked for built the same basic product as a few other facilities they already had, so the handwriting was on the wall, and one very large plant that built that same product was in Mexico. It took about 3 years to roll that plant into existing plants across the US and Mexico, and the term is "synergies". As much as it hurts the US worker, and US economy, it makes no sense to make a product in more than one location and duplicate efforts, therefore they identify the least cost method or location, and move the existing process or product to that location. Ironically part of the close of that facility moved jobs to another US plant, and in fact I can think of one such process that has moved twice - two times for plant closings. Each time they closed a plant where that machine or process was. Since this machine does not produce high volume it is very likely it will remain in the US in one of their plants. It is well known that low volume or processes that require high set up times (requiring more machine set up), do not lend well to Mexican plants.
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