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Emerson Tool Company closing plant in Paris, TN

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  • #16
    RGad---agree with most of what you've said. However, in this (Emerson) case, not sure what the Paris plant made, but I can say that the price of Rigid woodworking tools is very much in the ballpark of imports---so, I don't think it's that much of a price issue.

    While I don't mind pay a bit extra for an American product, I do expect equal or greater quality. Quality issues were why American cars lost huge market-shares to imports, since tarriffs on imports kept the prices fairly competitive.

    BTW--I think the Japanese automakers have proven that the quality problems weren't the fault of the American worker, since they've been making Hondas, Toyotas, etc. in the US for years and still enjoy the highest quality ratings.

    Indeed, I would offer that moving manufacturing overseas has more to do with management greed than high wages for workers---at least it's been that way in the last decade or so---most factory workers I've seen are lucky to get $10-15/hr. (don't know the latest avg. wages for autoworkers). And, it's a statistical fact that the percentage difference/ratios, between line workers and executives is hundreds of percentage different in the US---Japan still has modestly paid CEOs---RevEd, which leads me to surmise that I put more money in the hands of average working Americans buying my Tundra, than by getting an F-150.


    • #17
      daveferg: Next time you have access to a 10K or Annual Report for GM or Ford, note the total compensation for the CEO, and then note the total labor costs paid to the guys who build the cars. Divide the latter into the former. I'd be surprised if it works out to more than $2 or $3 per car.

      I agree that obscenely high executive compensation packages are bad for business. The the reason is that they tend to make the executives play the game for themselves, rather than for their company, setting up an inevitable conflict of interest. Witness Tyco. Executive compensation is not, however, the reason why manufacturing is moving off-shore.


      • #18
        I want to thank you guys for the comments you've made and the points you've brought up, but this is a woodworking power tool forum and that's what the discussion should relate to. Please note I am not going to close this thread as not to censor anyone, as I have always tried to keep this forum as open and as honest as possible. I just feel we need to get back to the real point of this forum, woodworking and power tools.

        If anyone has any further comments on the closure of our plant in Paris, feel free to contact me via email rather than post here.

        Once again thanks for the comments and the intelligent discussion that has taken place.