| Lazy-boy moving to Mexico Posted: 4/16/2008 11:58:13 AM | The Lazy boy manufacturing plant in Tremonton Utah has decided to move to Mexico. Just a few weeks ago they were running adds for employment opportunities. While running the adds they were aware of the move to Mexico. The move was not public knowledge at the time. Many people left lower paying jobs to go to Lazy boy just to get laid off or fired a few weeks later. Lazy boy was a high paying job here in this part of the state and employed around 400 people(I think). Just another American company pissing on the American worker for cheap labor and the dollar bill. Nafta has go to be reversed. In the economy today..the way our dollar is going. This kind of corporate greed will be the downfall of this country. | |
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| Lazy-boy moving to Mexico Posted: 4/16/2008 12:08:45 PM | | and the states hasn't done the same to others?......... motts clamato juice [as one example off the top of my head] is now produced in the usa............ guess if americans get the short end of the stick, it's okay to cry foul? ............. i used to run a truck on propane, paid as little as $.07/ l compared to gas at .84/l , before nafta. .................i agree it should be scrapped and let us have our own cheap energy and sell to the highest bidder.............and how about the fairness of the softwood lumber debacle?.......nafta should go............ | |
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| Lazy-boy moving to Mexico Posted: 4/16/2008 12:19:20 PM | | I agree to a point. The Canadians are getting the shaft on the softwood lumber deal...But on the whole I would dare say that more companies have gone to Mexico than have come here... | |
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| Lazy-boy moving to Mexico Posted: 4/16/2008 1:08:46 PM | | Not from what I've seen in the Canadian corporate sector. Plenty of our firms are snapped up by often inferior US companies(the higher quality product companies do not need to strangle competition in this manner), shutdown here and jobs re-located to US plants to take advantage of corporate welfare scams. A few do go to Mexico or China, but either way the consumer loses in choices of which products to buy. | |
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| Lazy-boy moving to Mexico Posted: 4/16/2008 1:18:08 PM | oh well, what can you do? you dont want immigrants that do cheap labor... at least they do it in USA and a some US citizens would get hired as well (maybe all the managers or higher positions)... but since they are pushed to just hire 10 dollar an hour working class americans they have to move elsewhere where they can afford the labor. I see nothing wrong with that, illegal immigrants at least kept many businesses from going to other territories. | |
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| Lazy-boy moving to Mexico Posted: 4/16/2008 8:36:09 PM | | Mexico and NAFTA is the least of the USA's worries. China is the country that's going to put everyone out of a job. Instead of bickering with each other, North America should make an honest effort to work together and deal with the challenge of China. | |
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| Lazy-boy moving to Mexico Posted: 4/16/2008 8:40:56 PM | | I don't believe it is an issue of immigrants, but an issue of corporate greed, and higher profit margins. It is a win-win situation for Lazy Boy. | |
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| Lazy-boy moving to Mexico Posted: 4/16/2008 9:56:20 PM |
China is the country that's going to put everyone out of a job.
Yes. Because a billion Chinese consumers would ...
Wait a minute. Why is that a bad thing again? I forgot. | |
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| Lazy-boy moving to Mexico Posted: 4/16/2008 10:19:43 PM | | a billion chinese consumers that can't afford anything YOU make because there wages are so pitifully low? What was the question again? Ponder it in the unemployment line, But atleast wallymart will still have good profit on the work of the chinese and minimum wage American and Canadian citizens. | |
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| Lazy-boy moving to Mexico Posted: 4/19/2008 12:50:28 AM |
a billion chinese consumers that can't afford anything YOU make because there wages are so pitifully low? What was the question again? Ponder it in the unemployment line, But atleast wallymart will still have good profit on the work of the chinese and minimum wage American and Canadian citizens.
It seems to me that your argument is shaped by stereotypes you may have about the Chinese workforce.
How Rising Wages Are Changing The Game In China http://www.businessweek.com/magazine/content/06_13/b3977049.htm Wait a minute. Doesn't China have an inexhaustible supply of cheap labor? Not any longer. From the textile and toy factories of the south to the corporate headquarters and research labs in Beijing and Shanghai, the No. 1 challenge today is finding and keeping good workers. Turnover in some low-tech industries approaches 50%, according to the Institute of Contemporary Observation, a Shenzhen labor research group.
I find that many arguments against industrializing countries is that workers in that country have some better alternative should sweatshops and low paying manufacturing jobs no longer be available. Farming is still the strongest skill set in China and many young people work in the factories for a few years and then return to rural life.
'Made in China' no longer cheap http://news.bbc.co.uk/2/hi/business/4623550.stm Consequently, each year, Chinese factories lose between 5% and 50% of their workforces.
How Rising Wages Are Changing The Game In China http://www.businessweek.com/magazine/content/06_13/b3977049.htm The pressure has as much to do with skills as it does with numbers. Although the total labor force is about 800 million, relatively few people have the qualifications employers want. For most textile, toy, and tech-assembly jobs, for example, export-oriented manufacturers prefer women from 18 to 25 years old or people with experience operating machinery. "The skills base does not meet the demands of a rapidly growing market," says C.P. Lee, Asia-Pacific human resources chief at Motorola Inc. ...
Large cities in China are quickly filling with higher-paid consumers. Far from taking the jobs in many other countries, these consumers are creating demand for more imports into China. Manufacturing for export from China is falling, not rising as you seem to imply.
How Rising Wages Are Changing The Game In China http://www.businessweek.com/magazine/content/06_13/b3977049.htm The wage issue has started to affect how companies operate in China. U.S. corporations and their suppliers are starting to rethink where to locate facilities, whether deeper into the interior (where salaries and land values are smaller), or even farther afield, to lower-cost countries such as Vietnam or Indonesia. Already, higher labor costs are beginning to price some manufacturers out of more developed Chinese cities such as Shanghai and Suzhou.
More Chinese declare high earnings as wealth grows http://news.xinhuanet.com/english/2008-04/18/content_8006418.htm The amount of Chinese who reported earnings above 120,000 yuan (about 17,142 U.S. dollars) last year surged more than 30 percent from that of 2006 to 2.12 million, the State Administration of Taxation (SAT) said on Friday.
This group declared a total income of 773.5 billion yuan, about 50 percent more than that of 2006, the SAT said on its website. It attributed the growth to expanded employment and rising salaries.
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| Lazy-boy moving to Mexico Posted: 4/19/2008 1:46:36 AM | Lets pretend that you are a director of Lazyboy.
Now your job, first an foremost, is to protect the interests on this company. To make it efficient which, in turn, keeps your prices competitive.
True, a loyal, skilled and motivated workforce is paramount in maintaining efficiency but labour amounts to around 2/3 of all manufacturing costs. This is roughly the same for all companies.
In a changing world where raw materials and labour costs are rising astronomically, where your competitors are importing cheap from China, how do you stay competitive? How do you safeguard the companies interests?
If you based your descisions on the interests of your employees then you're not doing you're job right because the company will inevitably collapse or be bought out by others who will do the very thing you should have done in the first place.
Bearing in mind, your manfacturing process is as efficient as modern technology allows, how can you cut costs to remain competitive? Ask your present work force to take a pay cut? Buy cheap from China and lay people off? Relocate altogether to where the labour is, and will remain for the foreseeable future, cheaper?
I know, ultimately, if all companies relocated it is self sacrificing. The very people who you're hoping you sell to won't be able to buy your products because they are out of work. This is something that politicians need to sort out and, has a director, is somewhat out of your control. So all you can really do is follow the trend and do the best for your company.
It's a no win situation I'm affraid. Compete or go under.
If you can see another way to be competitive then please let us know because you could be the saviour of America.
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| Lazy-boy moving to Mexico Posted: 4/19/2008 6:23:21 AM | | A lot of the cost for employers is health care, many are bailing from it, but our system here is basically employer-backed health care and we are losing it. the changes, to put it as an individual mandate instead of on the government, will make things much worse. | |
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| Lazy-boy moving to Mexico Posted: 4/19/2008 6:49:36 AM | | Hmmmm how do you compete with cheap crap that falls apart the first time you try to use it or sometimes even before? Make quality goods, use skilled craftsmen to do so, pay them well so they'll stay and charge more for your product. But unfortunately corporations are greedy enough to thing that the profit margin should be somewhere around the mark of one arm or one leg for an item that used $40 worth of material, and $70 worth of labour/overhead. But I'm off the mark in thinking $400-500 for said quality item is fair, it will retail instead for $2000 or better. | |
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| Lazy-boy moving to Mexico Posted: 4/19/2008 8:24:26 PM | | That giant sucking sound that Ross Perot said would happen if NAFTA passed..... | |
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| Lazy-boy moving to Mexico Posted: 4/19/2008 8:34:20 PM | That giant sucking sound that Ross Perot said would happen if NAFTA passed.....
I rarely agree with you designing, but here I must.
Bill Clinton take a bow. | |
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| Lazy-boy moving to Mexico Posted: 4/19/2008 8:53:37 PM | moderategoodguy,
It's not only lazy boy from Utah. This is one of hundreds of companies ...
It actually started when Ford motors moved to Canada years ago and maybe some before them (what a fvckup in my opinion)
Nafta for the worse doesn't always mean Mexico. This country has been moving plants to foreign places for years; Canada and Mexico, China.....duh, pftt!
One thing I'm sure of that's a product of USA, is postively my DNA. | |
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| Lazy-boy moving to Mexico Posted: 4/22/2008 5:43:17 AM |
Because a billion Chinese consumers would ... ... buy Chinese made goods, if for no other reason than Chinese protectionism. China isn't an open market. Tariff and non-tariff barriers will lock out Western companies from the lucrative Chinese market, while they dump subsidized goods on the rest of the world, along with leaded children's toys, poisoned food, unsafe equipment and counterfeit goods, | |
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| Lazy-boy moving to Mexico Posted: 4/22/2008 6:07:12 AM | I rarely agree with you designing, but here I must.
Bill Clinton take a bow.
http://www.infoplease.com/ipa/A0104566.html
In three separate ceremonies in the three capitals on Dec. 17, 1992, President Bush, Mexican President Salinas, and Canadian Prime Minister Mulroney signed the historic North American Free Trade Agreement (NAFTA). The framework agreement proposed to eliminate restrictions on the flow of goods, services, and investment in North America. The House of Representatives approved NAFTA, by a vote of 234 to 200 on November 17, 1993, and the Senate voted 60 to 38 for approval on November 20. It was signed into law by President Clinton on December 8, 1993, and took effect on January 1, 1994.
One thing I'm sure of that's a product of USA, is postively my DNA
How amusingly absurd. You're pure blooded Native? | |
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| Lazy-boy moving to Mexico Posted: 4/22/2008 8:01:13 AM | I bet the price consumers pay, for their products, will not go down one penny. The furniture business is well known, for at least a double the cost markup. If the cost is $300, the retail sales price is, at a minumum, $600, thus the big discounts, that are typically used to close the sale. Most businesses, could only hope, to achieve that kind of profit margin.
So now more people who could once afford to buy that product are now out of work, and most will be lucky to find new jobs, paying at least the same wage. Yet the price of the product never goes down. I do not care if it chairs, cars, TV's whatever, the price to the comsumer is never reduced. They all have a little wiggle room, but only if you ask for it, if you do not, you pay full price. Look at it this way:
If you have a town of say, 1000 people, and let us say they are all making $100k per year. These people pay taxes which supports the local government, the schools, public services, etc. They also buy goods and servies from each other as well. They also pay credit card bills, and mortgages, etc.
Now lets say, that same town, of those 100o people, suddenly get all their wages cut by half. What do you think will happen to the quality of life in this town, the quality of public services, the prosperity of each business, the ability to pay bills, and maintain a mortgage. Now take this example on a nationwide basis, and now you know, why were are in the mess we are in. Plus the fact that billions of tax dollars are being wasted on a war on terror, that cannot be won,
Well you are now seeing the true effect of this rush to outsource and the whole NAFTA deal today.
Record high forclosures, the wrecked credit markets, and record unemployment.
We are in deep do people, and it is only going to get worse, until we get leaders in there who actually give a shit about the American people. Sadly, once again, it will not happen.
We again have the elite millionaires running for President, a woman, a old crabby rich white guy, and a half a black guy, who are all so rich, they could never understand the plight of the middle and lower classes.
It would be like most of us, trying to understand and care about the homeless bums, we step over every day, as they put their hands out, asking for money! We do not, and we do not want to.
Well neither does Hillary, McCain, Bush, or Obama, to them we are the bums, they step over.
Think about it! | |
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| Lazy-boy moving to Mexico Posted: 4/23/2008 7:13:36 PM | Clinton take a bow.
http://www.infoplease.com/ipa/A0104566.html
It was signed into law by President Clinton on December 8, 1993, and took effect on January 1, 1994.
DUH.... Yes, indeed! What a wonder it is also that some people don't 'get it'.
Charles: if you're not capable of intellectual debates, please refrain from participating.
One thing I'm sure of that's a product of USA, is positively my DNA
How amusingly absurd. You're pure blooded Native?
Never said "pure blooded", brain-stein. I'm laughing at you now.
Now your statement ; I can say is amusingly absurd.
"Pure- blooded".... don't know such a species exists. All has a bit of everything from the beginning. Exceptions may be species that don't cross breed, is that what you mean?
Seems the problem to me , you're not clear what part of the GUANO family you're from or your exact heritage. | |
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| Lazy-boy moving to Mexico Posted: 4/24/2008 1:01:21 AM | One thing I'm sure of that's a product of USA, is postively my DNA
How amusingly absurd. You're pure blooded Native?
If her dad was born in the USA, Her mon was born in the USA.
They could have concievd her anywhere in the world and she would still be a Product of the USA.
HMM Made In Canada, Product of the USA Have to love those American Women | |
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| Lazy-boy moving to Mexico Posted: 5/8/2008 9:11:11 AM | | when I go shopping I look to see where it's made . " made in china " leave it sit it's junk . " made in mexico " leave it sit . it is getting harder and harder to find anything made in america . I use to work for goodwill . 90% of the stuff there is from china now . | |
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| Lazy-boy moving to Mexico Posted: 5/8/2008 9:37:40 AM |
That giant sucking sound that Ross Perot said would happen if NAFTA passed.....
Gee. Who would've thought a self made billionaire would know anything about business. People forget that before he dropped out and came back that people were going to overwhelmingly vote for the man. He's not crazy.
I don't understand why the US doesn't just tax the hell out of cheap Chinese imports to make corporations think twice about whether it's profitable to make goods in China. If not maybe they will come back to the US. Maybe they will go to some other third world country and exploit them next. If so you tax those imports hard as well. By having China become industrialized it's only serving to put a huge drain on the world's oil supply. What's really disturbing is that there are so many goods made in China that aren't made in the US that threaten national security. If for some reason China were to declare war on the US we'd be screwed because some key things we need are manufactured there. It would be like having Chinese make bombs for the US and having China declare war. It means the US wouldn't have bombs. Now it's not bombs that are the problem. It's other little things that people don't think twice about but are actual security risks. Yet it's strange how the Department of Homeland Security (what a freaking joke that is) doesn't pick up on it.
The last thing is in an economy that is consumer driven, if people in the US would start being more concerned with what they buy instead of how good it looks on them or whether they're the first to have it, certain things would be different. The whole system requires that the consumer judges products with scrutiny and judge for quality and not buy crap. That keeps the system running smoothly. It means only the best goods will make it. Except that's not what is going on nowadays. Propaganda and psychology of ads and marketing are making people buy things they would've never bought long ago. CRAP! | |
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| Lazy-boy moving to Mexico Posted: 5/8/2008 6:25:40 PM |
and how about the fairness of the softwood lumber debacle?
That's how business is done in the US.
As for La-Z-Boy moving to Mexico... well it was only a matter time. Many of North Americas largest appliance manufacturers opened plants in Mexico upwards of 5 years ago. | |
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