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Foxconn to Build $10B Factory in U.S
- dingdongding 9y agoThis will be in Paul Ryan's district. Fishy enough?
- maxerickson 9y agoOuter Milwaukee is a logical place to build a large factory in Wisconsin. So hard to read much into that particular aspect of it.
- 1123581321 9y agoFor anyone actually interested in learning how hard southern Wisconsin has worked to get manufacturing back after the GM plant closure, I recommend Janesville: an American Story. Suffice to say that many, many people both R and D want these jobs in Paul Ryan's district and willingness to offer incentives is fully bipartisan. https://www.amazon.com/Janesville-American-Story-Amy-Goldstein/dp/1501102230 https://www.amazon.com/Janesville-American-Story-Amy-Goldste...
- Animats 9y agoWhat, 13,000 factory workers? Foxconn isn't going to use mostly robots? Gou has said he wants to get rid of the "animals" in his plants.
- prklmn 9y ago3,000 workers according to Foxconn. The trump administration has said it could create up to 13,000 over the coming years, so who knows what that really means...
- bitdeveloper 9y agoI heard on the news that 10,000 construction jobs would be created, so perhaps both are right - 10,000 temporary construction jobs, and 3,000 permanent/plant jobs.
- aioprisan 9y agoYou mean like all the jobs the Keystone Pipeline was going to create that looks closer to less than 100 in the long term? http://money.cnn.com/2017/03/24/investing/keystone-pipeline-jobs-trump/index.html http://money.cnn.com/2017/03/24/investing/keystone-pipeline-...
- brown9-2 9y agoCounting temporary construction jobs as permanent seems a little misleading.
- mattnewton 9y agoPoliticians mislead to look better?!? Though you are right, this looks like an exceptionally misleading deal from the point of view of the taxpayer. When I think of Foxconn workers I dont think of the kinds of jobs I think we would want to heavily invest in, but I hope I am wrong.
- lossolo 9y agoThey would love to use mostly robots. It's political decision, not economic one.
- ArlenBales 9y agoAre the majority of these 13,000 jobs likely to be minimum wage?
- tanilama 9y agoWhat do u expect? It is Foxconn, it needs bloody labor not Google engineers.
- KekDemaga 9y agoWalmart and Amazon pay well above the minimum wage. It might be because they are so altruistic but I suspect they can't find labor worth keeping at that price. I imagine the same will be true for foxconn.
- ribosometronome 9y ago"Well above" isn't super meaningful. I believe Wal-mart's minimum pay is 9/hr and most employees are closer to 12-13. That's not going to be a livable wage in many areas. Add in that half of those are part time and not getting employee supplemented health insurance and it gets less livable.
- KekDemaga 9y agoWalmart has a national minimum of $10 an hour the federal minimum is $7.25. I consider a roughly 25% premium to be a significant increase when talking about salaries. My comment is in regards to these jobs paying minimum wage and the evidence leads me to believe that it is virtually certain that these jobs will pay a significant percentage more than that. (not to mention all the managerial and skilled labor jobs that will pay many times more that will come with them)
- wavefunction 9y agoWalmart was forced to offer $10 an hour because they were facing staff shortages. The interesting thing is that their profits certainly didn't nose-dive after the bump in their labor's wage rate.
- cjnicholls 9y agowithout paywall: http://archive.is/SiGPl http://archive.is/SiGPl
- WheelsAtLarge 9y agoI find it hard to believe that they won't automate it to the max. They've started to do it in china, why wouldn't they do it here where labor is more expensive and the factory is brand new. Foxconn has been manufacturing for a long time and they are looking to reduce costs not increase them by building in the US. Automation is the best way. I bet the jobs are not long term. Some jobs are better than none but don't pat your back with congratulations.
- lossolo 9y agoThey don't want to have problems with current US administration and Trump wants factories, so they give him factories.
- krapp 9y agoMeaning the automation starts as soon as Trump leaves.
- dragonwriter 9y agoNo, it means it starts on day one. As with Carrier, Trump wants things he can announce, but once he's gotten an announcement out of it his interest is done.
- matt_wulfeck 9y agoAutomated new factories here in the homeland is still better for us than empty factories.
- WheelsAtLarge 9y agoMaybe, they get very large tax breaks plus the take up resources. It's probably a breakeven situation.
- wavefunction 9y ago>>as soon as Trump leaves the room. The automation starts as soon as Trump leaves the room after giving himself his little back pat.
- ty_a 9y ago$3 billion in subsidies for 3,000 jobs. http://www.jsonline.com/story/news/2017/07/26/scott-walker-heads-d-c-trump-prepares-wisconsin-foxconn-announcement/512077001/ http://www.jsonline.com/story/news/2017/07/26/scott-walker-h...
- kingnothing 9y ago$1,000,000 per job seems like a staggering subsidy.
- toomuchtodo 9y agoSeems like it'd be cheaper to just give it away as UBI, no? Especially considering a million dollars for a transient job versus paying someone a million dollars over their lifetime. This whole late stage capitalism transition is going to be painful.
- malandrew 9y ago> "late stage capitalism" What does this even mean? Sounds like an activist buzzword. What evidence do we have that there are even "stages" to capitalism much less that we are in a later stage?
- toomuchtodo 9y agohttps://en.m.wikipedia.org/wiki/Late_capitalism https://en.m.wikipedia.org/wiki/Late_capitalism Capitalism is showing its flaws if we're paying a million dollars per job just to bring the job to our soil, although I suppose it's better then just keeping Foxconn products (or products that integrate their components) out at ports (or tariff them, like Russia with phones without a GLONASS chipset).
- jjawssd 9y agoTax incentives are not the same as cash payments
- WheelsAtLarge 9y agoThis reminds me of the 1B apple datacenter announcement in 2011 that ultimately created 50 jobs. Reality sux. http://www.businessinsider.com/apple-new-data-center-north-carolina-created-50-jobs-2011-11 http://www.businessinsider.com/apple-new-data-center-north-c...
- timavr 9y agoApparently US labor is cheaper then Chinese. Wow!
- adventured 9y agoAlmost correct. It's the overall cost equation that is important, not just labor though. "U.S. Manufacturing costs are almost as low as China’s, and that’s a very big deal" http://fortune.com/2015/06/26/fracking-manufacturing-costs/ http://fortune.com/2015/06/26/fracking-manufacturing-costs/ "These days, China's labor costs are only 4% cheaper than those in the U.S. when productivity is factored in, according to Oxford Economics. " http://money.cnn.com/2016/03/17/news/economy/china-cheap-labor-productivity/index.html http://money.cnn.com/2016/03/17/news/economy/china-cheap-lab...
- __x0x__ 9y agoFrom a Reuters article: "In 2013, Foxconn said it would invest $30 million and hire 500 workers for a new factory in Pennsylvania, but that facility was never completed." So I wouldn't hold my breath.
- deleted 9y ago[deleted]
- bogomipz 9y ago>"This is a great day for American workers and manufacturers and everyone who believes in the concept and the label 'Made in the USA,' " said an ebullient President Donald Trump at the White House announcement." Why is this great for American manufacturers exactly? I'm guessing Trump doesn't know that Foxconn is a Taiwanese company? That sounds about right.
- CamelCaseName 9y agoFoxconn has more factories in China than in any other country and their largest factory is in Shenzhen. The implied "Made in USA" vs "Made in China" is fair.
- bogomipz 9y agoMy comment was very clearly asking about the "American manufacturers" part of the quote not the "Made in USA" part. Foxconn has factories around the globe but they are a Taiwanese manufacturer not an American manufacturer, they are traded on the TWSE: https://en.wikipedia.org/wiki/Foxconn https://en.wikipedia.org/wiki/Foxconn
- dmode 9y agoThis is a giant photo op good will by Foxconn. Just like the Carrier announcement. My bet is that there won't be any factory, and even if there is it would be a small outpost employing a handful of people. All financed by giant taxpayer subsidies
- maxerickson 9y agoThe subsidies are tax credits. They make the location more attractive, they don't finance the project.
- truthhurtstoss 9y agoThat's a one time cost. Sounds reasonable when you compare it to California spending $21 Billion each year to subsidize 3 million people.
- bytefederal-ceo 9y agoThe subsidy turns lost tax revenue (taxes == slavery) into jobs for US citizens. Please explain how this is a bad thing?
- somedangedname 9y agoThanks for your input, 4 minute-old account!