Dewalt cuts 1100 jobs, moves to Mexico
ICOldHome
| Posted in Tools for Home Building on
According to the press release in FHB #153, Dewalt is closing its manufacturing plant in Maryland- 1300 GOOD-PAYING American jobs heading to Mexico. We need to send a message to DeWalt- “I will not buy your tools when they are made at the expense of American jobs, period”.
Every job that leaves the United States means another family slips further down the socioeconomic ladder. Where will our children work?- Wal-Mart?- see how far that $7.00 an hour goes when you’re feeding a family.
Porter-Cable, Ridgid and Milwaukee. American made by hard working Americans.
Doug Moore
I’m interested to see how long Taunton leaves this up, considering the amount of advertising DeWalt does with them. Today is 2/2/03, 8:30 est.
Replies
Yes it sad that they have to leave and go to mexico... but don't blame Dewalt... you have to buy insurance in the US also.... It's hard to have employees... the government kills you, the insurance co kills you, and lawyers kill you... your employees kill you,
It's all about return on investment... dewalt sitting there with a 100 million dollar plant... the local tax people can't see the $$ they pour into the area so they tax em to death... the codes and regulations most are there just to create jobs .... welcome to life in the US... might as well turn it all over to walmart....
it's a world economy and you have to play by world rules...
when you can't fire a worthless employee we all suffer, if you can be trained to do a job in less than a day i hate it for you... but you are not worth $20 an hour i don't care how long you've been there or done that... everyone has to create their own value with a skill, know how or an education or some mixture of the same...
a local trucking company just went out of business here... it's drivers with insurance & retirement were making/costing the company almost $70.00 an hour... and the drivers were asking for more... it just wasn't there... they closed up... they will reopen under a new name with new people and they will pay $12 an hour with no insurance... this company had been good to it's people for a long time... when it was time for it's people to be good to the company "no way i'm take'n a 10% cut in pay"
what can you say...
What I'm more interested in knowing is what your affiliation is to all this. Are you one of the displaced workers or work for their union ? There have already been a couple of threads on this topic, but you only joined at noon to day, apparently for the soul purpose of proselytizing this message, and felt the need to start a couple of redundant threads. Seems to be a lot of that going around here the last little while.
Phill Giles
The Unionville Woodwright
Unionville, Ontario
To Buy USA
Why don't you buy the company and keep the jobs here in the USA? I am sure if you buy all the stock you can do as you want and not worry about bottom line.
Doug,
Hate to disagree, I think dewalt sucks beyond the fact they are moving and I love PC, but a lot of PC power tools are now made(assembled) overseas.
Its sad if you think about it, How little those people must be making for it to be cheaper to make something half a world away and ship it here, then it is to actually just make it where its sold
Edited 2/4/2003 12:05:24 AM ET by CAG
Absolute $'s is not really that accurate a yardstick. You have to talk about COL elements vs NEAT to even approximate a ratio (and that entirely disregards employee expectations, community status etc.). To give an example closer to home: it costs a lot less to live in 'nowhere" Arkansas than NYC; therefore, someone living in 'nowhere' could buy the same lifestyle as the New Yorker for less money too..
Phill Giles
The Unionville Woodwright
Unionville, Ontario
Any body remember the cycles of plant closures and openings in 3 towns in up state NY? Elmira, Corning and Big flats.
Companies such as Westinghouse, GE, Remington, Corning Glass, Thatcher Glass, Trinity, White, Hobart, Fram, Puralator, Bendix, Switezer, Ward LaFrance, American LaFrance, A&P and others.
Remember the money you let go out of country do not do a damn bit of good here. We'll have to fight it latter. Pay attention to history we always repeat ourselves and never seem to learn.
Can you say NAFTA ? How come nobody is talking about it ? I wnt to a woodworking show this week end , near St Louis, stopped by the DeWalt display and commented that I would not buy DeWalt in the future only PCor Mil. the rep said "really , that's nice".
Nails im curious to your only buying PC/delta tools? they are made overseas yet you will still buy them over dewalt because they moved to Mexico?
(this doesnt factor in quality of goods, just the brand)
Hey Bill.....I understood that PC/Mil. were still based in the USA something I had seen in posts here. Hell man I don't even like Hondas , Makita, Suzuki ,Volvo,VW,Hitichi or anything from Mexico Canada Or lower Slobovia. Yes ,your probably thinking what a dummy but it bothers me when the factory workers wives are working at some computer to support a family. The American people can still out do others and the writing on the wall tells me it's a matter of time before houses are brought here in full scale with the crews to put them together. Paper work cannot suport a nation and that's what we do. When you mention " just the brand" I wish that Honda would permanately install a jap flag on their cars and other manufactures of products not made here would do the same,then maybe a lot more people would take notice of who they are supporting. Sorry ....this is just the rantings of an old carpenter that won't be able to build a house for those people that worked at DeWalt. I got no answer just confusion in why other people accept it so easily. NAFTA who was for it again?
In case you don't know, most Hondas sold here are also built here in the US.
Volvo is owned by the Ford Motor Company based in the US, but builds their cars overseas.
Jeep, Chrysler, Dodge, are owned by a German company based in Germany, but build their products here.
Many companies that use electronic components, use components that are built in Malaysia and that includes many products stamped "Made in the USA".
nino ...Can you talk to me about NAFTA? Your opinion would be helpfull.
NAFTA is the free trade agreement between the United States, Canada, and Mexico. The intent was that there would be no barriers to trade between the members, that work rules and regulations become standardized among the members, and that companies based in these countries would be held to the same enviromental and safety regulations.
NAFTA was thought to provide another market to American companies free of tariffs and impedements. It was also thought that it would "raise" the economic platform of the other members (Mexico) so that people would not leave their country in order for them to work. The reality has been different.
Under NAFTA, a US based company can set up a manufacturing plant in Mexico and still label its goods "Made In The USA" as long as the largest percentage (as low as 35% of total value) of the product's value is US based. That includes advertising costs, insurance costs, administrative costs, accounting costs, etc. What this has done is caused an exodus of US manufacturing jobs to Mexico. If you can lower production costs, the percentage of US value is increased.
The hoped for common regulations in regard to safety and enviroment has been slow to come around. As a result, companies that set-up in Mexico, face lower costs and less red tape. The Mexican government's incentive to companies relocating, just sweetens the deal even more. While NAFTA has been good for manufacturing companies, it has cost thousands of US jobs.
In my opinion, the effect of NAFTA hasn't been surprising. While the "Buy American" sentiment is admirable, the fact remains that where it counts, consumers demand lower prices. Companies wishing to compete have no other choice than to cater to their market in order to stay in business and NAFTA allows them to do so. If you want companies to stay here, a few things need to change.
First, companies need incentives in the form of tax breaks, accelerated depreciation, tax credits, even grants in order for them to modernize with new equipment. Unions must also give some concessions by accepting that some jobs will be lost due to automating the manufacturing process to increase productivity. Union work rules need to be relaxed to allow a worker to do several jobs.
Finally, there needs to be a revamping of government regulations that continue to strangle companies that do business here. All the different types of regulation need to be addressed to see if the burden it places on companies is worth the result. Along with this, new insurance rules regarding liability need to be put into effect in order for a company to be able to protect its domestic assets in a lawsuit.
nino.... Thanks for your most informative reply. I feel it was unbiased , non political which is hard to find . The best compliment I can give you is that I printed your reply so that I can refer to it in discussing this subject with my teenage daughter. Be kind to yourself. Nails
FYI, Milwaukee isn't an American company, although Milwaukee's headquarters, R&D, and manufacturing are all in USA. They are a subsidiary of the Atls-Copco Group, which is headquartered in Stockholm, Sweden. This group also holds AEG, Rand Air, Chicago Pneumatic, and a handful of other brands that I didn't recognize.
Just more confusion in the world when you try to buy American...If everything seems to be going well, you've obviously overlooked something.
It seems to me that while "Buy American" is a noble sentiment, the practicality of it is something else.
Do we not buy Milwaukee tools even though they are built here and Americans are employed by them because they are owned by a foreign company?
Do we then not buy a Volvo that is owned by an American company that employs Americans but is built overseas?
One of the things that in my opinion, goes hand in hand with the American way, is to reward excellence. I feel that if a company is doing it "right", giving you a quality product for a fair price, then that company deserves your business regardless of who owns it and where it comes from.
It's how we asked to be judged in our work.
That's what I was trying to get at with the Milwaukee thing. I own several Milwaukees, DeWalts, Porter Cable, Delta, etc. I shop and "reward" companies by buying product that have the right combination of power, features, price, promotions, quality/durability, and a host of other factors. All else being the same, I'd buy the one made in USA. The only time that COO really influences a purchase decision, is if it's made in China. That I try to avoid like the plague, but that's not always (easily) possible.
If everything seems to be going well, you've obviously overlooked something.
It's my understanding that almost all electronics mfg has gone Chinese. Tiawan, Malaysa, Mexico, US and Japan are subing out to China.
China forced two specialty battery companies in the US out of buisness. Came over here bought both bankrupt companies, bagged them up and sent the tech and tools to China. Took the hardware and left the people. Did the same thing in Canada.
Take a look where thier labor force is comming from. That will open your eyes. Make you sick.
I read this in Time, Newsweek or one some such weekly not too long ago. Don't remember which. One of the companies was in the Carolinas I believe.
CHINA IS GOING TO BECOME A REAL SERIOUS PROBLEM!!!
How many speciality batteries do you use. Got any cordless tools? Thialand can't compete with China. Look at how much hardware comes from China. Super low quality and the slag in bottom of the box that you bougt by the pound. Screws pre dulled, bent, no threads and can't be tougher than a grade 1. Lets not mention them rusting in the box, new.
My wholesaler for fastners knows that I won't accept Chinese - It's getting tougher for him to comply. I pay more for non-Chinese but I get a lot less grief.
TOYS ARE FINE AS LONG AS THE AREN'T CHINESE....
Well the only people who will feel a negative result are the employees of the factory. Sorry to see it close but in this day of silly lawsuits, high insurance costs, OSHA etc business really cant afford to stay in business and compete.
As for the rest of the country. Local and state govt will see minisule change or none at all. Sales tax generated by the sale of dewalts will remain constant. Cities and states are funded primarily on sales tax and special use taxes.
As the world becomes more and more global each day, its probably time the people adapt of fall aside. Its the sad truth of life. As contractors or subs or self employed persons in this trade dont adapt to the demands of the customer the dont make money.
Asking a company to stay in business and constantly lose money doesnt help at all. They will generate little if any corporate taxes, cost the consumer money buy making inferior goods just to keep heads above water.
The truth is very little disposable tools are made in the US, extending to the fact that very little disposable goods are made in the US.
If everyone, and i mean over 90% of the people are actually willing and commit to buying goods based on country of origin then this (dewalt closing) would never happen. But in this day of people doing anything to save five dollars on goods tells companies like dewalt to head overseas and cut your tool by ten dollars to offer that 5 dollar savings.
few other times in this countrys history has there been such a call for american made.who wont buy american these days?i'v used dewalt faithfully sence i started in the bizz and nothing will make me madder than to see a made in mexico sticker on my good tools.i'm just gonna buy the stuff made in fayettesville and forget about the rest.i think dewalts making a bad decision and they will see when all the tools they sell were made in the carolinas. GOD bless the U.S.A