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  • Vice-Grip leaving Nebraska for China

    Saw a story a few minutes ago in the online version of the Lincoln (NE)Journal Star that Newell-Rubbermaid is closing the Vice-Grip plant in Dewitt, NE, population 590 or so in October of this year and moving the manufacturing to China.

    Vice-Grips have been made in DeWittNebraska since at least the 1930s and if you have ever been to DeWitt you can't miss the plant.

    The article stated that the employees had to sign non-disclosure agreements about the closing but the news got out anyway.

    Will Newell-Rubbermaid save that much by eliminating a couple hundred Nebraska jobs and having the work done by Chinese workers making a dollar an hour and then shipping the wrenches back here for sale?

    I'm sad for my fellow Nebraskans

    Jeff T.

    "I'm getting nowhere as fast as I can"
    The Replacements.

  • #2
    quote:Originally posted by Jeff T.


    Will Newell-Rubbermaid save that much by eliminating a couple hundred Nebraska jobs and having the work done by Chinese workers making a dollar an hour and then shipping the wrenches back here for sale?
    The answer? YES. If the numbers didn't look good, there'd be no reason to do it.

    Corporations get hammered for this constantly. But people don't understand- they're not in business to give anyone a job, or a lifestyle, or security; they're in business to make as much money as they can to keep the shareholders happy, and keep the company alive and well. Nobody wants to take away people's jobs, or hurt them; but they have to do what's in the company's BEST interest, same as we do for our families. People spout off about corporate greed; but's it's really corporate self-preservation.

    Sad, but true.

    Robert (Bob) Andrews Owner- Studebakeracres- on the IoMT (Island of Misfit Toys!)
    Parish, central NY 13131

    "Some people live for the rules, I live for exceptions"- 311

    "Do they all not, by mere virtue of having survived as relics of a bygone era, amass a level of respect perhaps not accorded to them when they were new?"



    Comment


    • #3
      quote: People spout off about corporate greed; but's it's really corporate self-preservation.

      Sad, but true.

      Robert (Bob) Andrews Owner- Studebakeracres- on the IoMT (Island of Misfit Toys!)
      Parish, central NY 13131

      "Some people live for the rules, I live for exceptions"- 311

      "Do they all not, by mere virtue of having survived as relics of a bygone era, amass a level of respect perhaps not accorded to them when they were new?"

      And you never hear those same 'spouting off' people complain about health and life insurance, retirement, 401k's, paid vacations, sick leave, or every other employer paid benefit. They sure do demand them when they look for a job, but paying for them at the check-out stand is beyond their understanding. As a small business owner, it perturbs (good gosh, that is such a genteel version of the real word I want to use) me no end that people want SO much for nothing at work and then cry and whine when asked to pay for it within a product's price.

      Yes, it makes me want to cry for those individuals as well. So when do Americans quit buying foreign made products?

      '50 Champion, 1 family owner

      Comment


      • #4
        Interesting times for sure....
        My company set up a manufacturing plant in Mexico a few years ago to take advantage of the NAFTA opportunities.
        We closed that plant and dragged all of our equipment back here because we could not get the quality demanded by our customers from Mexican built production.
        We just completed two manufacturing facilities in China.
        Of interest is that the product manufactured in the Chinese plants are [u]NOT</u> destined for US markets.
        The Chinese manufactured products are destined for the Chinese marketplace (where we hold a miniscule precentage of market)...
        My conclusion?
        Choosing not to participate in a global economy will eventually doom a company to a niche market status.
        If you can live with that....fine.
        But most corporations won't be able to get that idea past their board of directors...
        Food for thought...
        Jeff[8D]


        quote:Originally posted by bams50
        The answer? YES. If the numbers didn't look good, there'd be no reason to do it.
        Corporations get hammered for this constantly. But people don't understand- they're not in business to give anyone a job, or a lifestyle, or security; they're in business to make as much money as they can to keep the shareholders happy, and keep the company alive and well. Nobody wants to take away people's jobs, or hurt them; but they have to do what's in the company's BEST interest, same as we do for our families. People spout off about corporate greed; but's it's really corporate self-preservation.
        Sad, but true.

        quote:Originally posted by Jeff T.


        Will Newell-Rubbermaid save that much by eliminating a couple hundred Nebraska jobs and having the work done by Chinese workers making a dollar an hour and then shipping the wrenches back here for sale?

        http://community.webshots.com/user/deepnhock
        HTIH (Hope The Info Helps)

        Jeff


        Get your facts first, and then you can distort them as much as you please. Mark Twain



        Note: SDC# 070190 (and earlier...)

        Comment


        • #5
          You are very right about the global market, Jeff. Those who don't grow into it, will be suffocated by it. Another side to the issue is a company won't survive if it moves 'out of country' just to save costs and not increase it's market. There is too much consumerism in America for a company to be able to tick off customers and survive simply by lowering costs. They'd better start selling to more people around the world.

          Makes me wonder, and Lord knows I know that all of you will learn me a thing or two here, GM is now making more money overseas than in North America. Is this due to a larger overall market, better product produced overseas and sold there, or something else that I'm not imagining.

          '50 Champion, 1 family owner

          Comment


          • #6
            I just hope that this doesn't mean that the jaws will wear out 4x as fast...

            nate

            --
            55 Commander Starlight
            http://members.cox.net/njnagel
            --
            55 Commander Starlight
            http://members.cox.net/njnagel

            Comment


            • #7
              Of course, this could mean that from now on Vice-Grips will be made from old Studebakers.


              [img=left]http://members.cox.net/clarknovak/lark.gif[/img=left]

              Clark in San Diego
              '63 F2/Lark Standard
              http://studeblogger.blogspot.com
              www.studebakersandiego.com

              Clark in San Diego | '63 Standard (F2) "Barney" | http://studeblogger.blogspot.com

              Comment


              • #8
                It is very true that if we buy stuff from China, because it costs less, and don't by stuff made in the USA because it costs too much, we have no room to complain. With that said, it is getting harder and harder to not buy stuff produced in China.

                It is quite a quandary. It seems like before long we won't be able to afford the well made stuff we are used to, but at the same time the stuff coming in from China is so poorly made we'll have to buy several pairs of say vice-grips to last as long as the 20 year old pair I've got in my tool box.

                What to do, what to do, what to do......?

                Joe Roberts
                '61 R1 Champ
                '65 Cruiser
                Editor of "The Down Easterner"
                Eastern North Carolina Chapter
                Joe Roberts
                '61 R1 Champ
                '65 Cruiser
                Eastern North Carolina Chapter

                Comment


                • #9
                  Bet me Vice Grip wont lower their prices, just raise their profit margin & like Joe said, have to buy several pairs to make up for the one pair that lasts. That, coupled with upper management being more & more overpaid equals greed.

                  60 Lark convertible
                  61 Champ
                  62 Daytona convertible
                  63 G.T. R-2,4 speed
                  63 Avanti (2)
                  66 Daytona Sport Sedan
                  59 Lark wagon, now V-8, H.D. auto!
                  60 Lark convertible V-8 auto
                  61 Champ 1/2 ton 4 speed
                  62 Champ 3/4 ton 5 speed o/drive
                  62 Champ 3/4 ton auto
                  62 Daytona convertible V-8 4 speed & 62 Cruiser, auto.
                  63 G.T. Hawk R-2,4 speed
                  63 Avanti (2) R-1 auto
                  64 Zip Van
                  66 Daytona Sport Sedan(327)V-8 4 speed
                  66 Cruiser V-8 auto

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                  • #10
                    Not to be contrary....
                    A lot of the factories in China are more modern, and are producing better products than similar North American factories.
                    To paint them (China) with only one brush is short sighted.
                    A lot of the very companies that shut down their North American plants have invested in the new(er) Chinese plants.
                    A quandry?
                    Sure is.
                    Pure capitalism has it's own peril.
                    Mix politics in with it and you have a nasty soup.
                    Jeff[8D]


                    quote:Originally posted by JRoberts

                    It is very true that if we buy stuff from China, because it costs less, and don't by stuff made in the USA because it costs too much, we have no room to complain. With that said, it is getting harder and harder to not buy stuff produced in China.

                    It is quite a quandary. It seems like before long we won't be able to afford the well made stuff we are used to, but at the same time the stuff coming in from China is so poorly made we'll have to buy several pairs of say vice-grips to last as long as the 20 year old pair I've got in my tool box.

                    What to do, what to do, what to do......?

                    Joe Roberts
                    '61 R1 Champ
                    '65 Cruiser
                    Editor of "The Down Easterner"
                    Eastern North Carolina Chapter
                    http://community.webshots.com/user/deepnhock
                    HTIH (Hope The Info Helps)

                    Jeff


                    Get your facts first, and then you can distort them as much as you please. Mark Twain



                    Note: SDC# 070190 (and earlier...)

                    Comment


                    • #11
                      Greed, for lack of a better word, is a good thing.

                      '50 Champion, 1 family owner

                      Comment


                      • #12
                        Very sad about Vise Grip moving their operation to China. I still have my first Vice Grip pliers that I bought at the PX at Aberdeen Proving Ground when I was stationed there in 1961. They still work great. I can't help but wonder how well the Chinese-made Vice Grip will hold up.
                        I understand that these companies, in order to be competitive, need to look for lower manufacturing costs, but American jobs are lost every time that happens. I guess that's what happens when you're part of a world economy.
                        Rog

                        '59 Lark VI Regal Hardtop
                        Smithtown,NY
                        '59 Lark VI Regal Hardtop
                        Smithtown,NY
                        Recording Secretary, Long Island Studebaker Club

                        Comment


                        • #13
                          Remember the days when everyone thought Japanese stuff was junk? Look where they are today. Is China next? How about India?

                          Terry Godkin
                          Surrey, British Columbia

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                          • #14
                            Yes, but in a very big picture. China is already out-sourcing due to material and labor costs, looking into southeast Asian countries. As that happens, as it did with America and Japan, China will look for more quality for the money they will be making with their new profits. And the new junk makers will be the S.E. Asian countries, and China will have moved up a peg. And we will be paying even more for Chinese goods, but they will be better than they are today because they will have more money, experience and intelligence to make better stuff. It's pretty much an endless circle catch-22, and we can only hope to keep our balance.

                            '50 Champion, 1 family owner

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                            • #15
                              PS -- thanks for email Jeff.

                              '50 Champion, 1 family owner

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