Venturous Randy Posted November 10, 2007 #1 Posted November 10, 2007 Folks the thing we are seeing with the toy industry is just the tip of the iceberg. In the 35 years I have worked, after four years in the military, most all of it has been in the Quality Assurance/Quality Control area of manufacturing. I spent over fifteen years for a company that made electric motors for the appliance industry with the last eight being the Corporate Quality Manager over four plants in three different states. Their product was the small motor usually used as the condensing fan motor in refrigerators, water coolers, coke machines, etc. When I left, they were producing 65,000 motors a week. Without naming names I will say that the largest customer's name started with a "W" and ended with an "L" and they made refrigerators and a lot of other appliances. At the time I left, the price of the OEM motor to them was about $7 each. If it was an aluminum frame motor, it was generally a fifteen year motor and if it was a cast iron frame motor, it was generally a twenty year motor. That means that under normal circumstances you did not have to replace that motor for about fifteen years at a cost of $75 to $100 bucks, if the refrigerator was still worth it. This included the service call. The motor sold to the general public for about $30 from a place like Granger. Several years ago, this famous customer decided they wanted to get motors from China and save a few buck on each refrigerator. Now the motor they are using is about a five year motor. Therefore, for them to save a couple of bucks, it would cost the average homeowner up to $200 to keep that refrigerator running over ten years. But then again, they are hoping that by five years you will want another new $1,500 or more refrigerator anyway. To put this into human perspective, the company I worked for had a plant that employed about 200 people (largest county employer) in one of the poorest counties in east Tennessee. This company had some of the most loyal employees that put out some of the best quality. The return rate on their motors was less than one tenth of one percent. That is less than one in a thousand, and historically half of those returns were customer induced problems. Now that plant is closed. After that company, I worked for a company that made aluminum and zinc castings. They also had three plants and then spent millions building a plant in Mexico. One of the castings they made was the case for the Tremeck six speed transmission that went onto the Corvette. They paid seventy cents per hour for labor to make parts for a transmission to go into a $60,000 car. That company ended up closing three plants including the one in Mexico. I have now been with a company that makes tank type water heaters for over four years. Now, almost everything that we use other than the tank and jacket comes from Mexico or China. The only reason they are still in the US is the physical size of a water heater. It absolutely breaks my heart to see what this country is doing with their manufacturing. One of these days it will be just one big service industry. RandyA
Squidley Posted November 10, 2007 #2 Posted November 10, 2007 Without getting Political with this one...I totally agree Randy Everybody thinks that the USA is invinceable, militarily that is probably true. Other countries aren't going to defeat us on the battlefield, they will destroy our pocketbooks. Problem with it is everyone is too damn busy to do anything about it. It will be a sad day when this country is trampled over because it's big corporate businessmen have sold it out. I believe that day is coming sooner than we might like to think
spear Posted November 10, 2007 #3 Posted November 10, 2007 It's called the Yellow Peril! China will take over the world without firing a shot in anger.
halfwitt Posted November 10, 2007 #5 Posted November 10, 2007 I have similar thoughts and sentiments about buying raw materials from offshore. I am the purchasing manager for a materials handling equipment manufacturer. In order for us to be able to compete I source many items from overseas for a variety of reasons. There is a large bearing that I buy. I can buy it domestically (though in reality the "domestic" supplier is European). It has a nine month lead time and costs almost $1900. I can source a virtually identical bearing from China for $1200 and have it in three months. There are wheels that I buy that can be made domestically for about $9.00. From Taiwan, I pay $1.10. When I buy 10,000 at a time, this is a considerable savings. We sound good and patriotic if we go into a prospective customer and say "American Made" but when that adds $1M to the price tag, it doesn't mean a thing. If I had my druthers I wouldn't spend a dime overseas. If we're going to stay in business though, I must.
hipshot Posted November 10, 2007 #6 Posted November 10, 2007 i am currently working on a "F.A.A." project for out local county airport. in the contract, it states "ALL materials, tools, labor, WILL be AMERICAN"!!! no exceptions! yeah , right. all of the local and some statewide suppliers, deal with only imported stock. we were forced to use steel from china, re bar, made in mexico, electrical components, made in japan, and china, and wire made in mexico. it seems , that NOTHING, is made here at home , anymore. just jt
DragonRider Posted November 10, 2007 #7 Posted November 10, 2007 I heard that the Hershey Corp. owned by the Heinz family, one of whom is married to John Kerry is closing the Hershey plant in Hershey, Pa. and moving it to Mexico.................so much for the economy in that area......................But this is what I found at Snopes.com............Urban Legends Reference Pages: Hershey's Moves to Mexico
Redneck Posted November 10, 2007 #8 Posted November 10, 2007 Its sad to see all the manufacturing jobs going overseas. America has become fat and lazy and we have priced ourselves out of the market. What really worries me is when we become Dependant on other country's for our food we are going to be in real trouble.
Guest cyote61 Posted November 10, 2007 #9 Posted November 10, 2007 Its a dirty rotten commie plot I tell ya. There going to get us all by using tooth paste:big-grin-emoticon:. Only ones to survive will be those folks in Arkansas that ain't got none.
Guest KitCarson Posted November 10, 2007 #10 Posted November 10, 2007 Its a dirty rotten commie plot I tell ya. There going to get us all by using tooth paste:big-grin-emoticon:. Only ones to survive will be those folks in Arkansas that ain't got none. You have it all wrong!! The only reason the rest of you have a tooth brush and tooth paste is because usins' Awkansas schooled folks, invented the tooth brush and toothpaste. If anyone else had invented it , they would have called it teethpaste!! Kit
Guest cyote61 Posted November 10, 2007 #11 Posted November 10, 2007 You have it all wrong!! The only reason the rest of you have a tooth brush and tooth paste is because usins' Awkansas schooled folks, invented the tooth brush and toothpaste. If anyone else had invented it , they would have called it teethpaste!! Kit :rotf::rotf:Eeeeeeyup
halfwitt Posted November 10, 2007 #12 Posted November 10, 2007 I heard that the Hershey Corp. owned by the Heinz family Not true. Hershey's is a publicly traded company. Annual report can be found here: http://www.thehersheycompany.com/about/profile.asp The word Heinz does not appear anywhere in the annual report.
DragonRider Posted November 10, 2007 #13 Posted November 10, 2007 I knew it, you just cant believe anything a Harley rider tells you...............thanks for setting the record straight................:rotf:. Its still sad that hershey is letting people go and moving some operations to Mexico...........they can get all the Mexican labor they want just about anywhere they look...........:whistling: Not true. Hershey's is a publicly traded company. Annual report can be found here: http://www.thehersheycompany.com/about/profile.asp The word Heinz does not appear anywhere in the annual report.
halfwitt Posted November 10, 2007 #14 Posted November 10, 2007 Yeah, I'm in York County PA - home of the largest HD plant. This county knows some things about jobs leaving the area. Pfaltzgraff went to China, York International went somewhere, not sure where. Caterpillar went to South Carolina which can be like leaving the country (gonna catch heck for that one!) York Peppermint Patties aren't even here anymore. I think HD is secure for awhile as they just built a huge addition and visitors center. There's a thought - would it be sacreligious to have a group from VR show up at Harley for a tour?
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