Fiat Chrysler announces $1 billion investment in US manufacturing, 2,000 new jobs

fca-fiat-chrysler-automobiles

Fiat Chrysler said Sunday it would spend $1 billion on U.S. manufacturing, including modernizing plants in Michigan and Ohio, in a move that’s set to add 2,000 new jobs, Reuters reported.

According to the company’s plan, the plant in Warren, Michigan will be made capable of producing a pickup truck currently built in Mexico.

The Warren plant will make the new Jeep Wagoneer and Grand Wagoneer large SUVs. A plant in Toledo, Ohio also will get new equipment to make a new Jeep pickup.

The move by Fiat Chrysler follows a similar recent announcement made by a competing auto brand.

On Tuesday, Ford said it would cancel a $1.6 billion plant planned for Mexico and instead invest $700 million in a Michigan assembly plant. Though CEO Mark Fields said the decision would have gone ahead whether or not Donald Trump was elected president, Fields also said Trump’s “pro-growth policies” gave the company’s executives confidence.

The president-elect has taken many auto manufacturers to task for Mexican production and encouraged building more vehicles in the U.S. He tweeted at General Motors after the Ford announcement on Tuesday, threatening a “big border tax” for producing cars in Mexico and then selling them in the U.S. GM pushed back on that characterization of its business model.

Sunday’s announcement by Fiat Chrysler also follows news a day earlier that the company was recalling 100,000 mostly older trucks and SUVs to replace Takata air bag inflators.

The Associated Press contributed to this report.

 

 

 

 

 

Source:
http://www.foxnews.com/us/2017/01/09/fiat-chrysler-announces-1-billion-investment-in-u-s-manufacturing-2000-new-jobs.html

Reshoring Data Reveals Progress, Problems for Reclaiming Jobs

The Reshoring Initiative, a not-for-profit organization that helps manufacturers recognize the profit potential for adopting local sourcing and production, issued its 2015 Reshoring Report, documenting progress that the U.S. manufacturing sector has made over the past decade in offsetting the job losses and capital investment, and recognized that “rapid job loss” has been curtailed, while conceding that “huge challenges to bringing back the 3-4 million manufacturing jobs previously lost to offshore.”

The report includes data on reshoring of formerly offshore jobs and foreign direct investment (FDI) by companies establishing new domestic manufacturing for 2007-2015. Both factors are keyed to manufacturers’ determination to produce goods in the market where they are intended to be distributed, known as ‘localization.’

The complete— Reshoring Initiative Data Report: Reshoring and FDI Continue Strong in 2015 — is available online.

For 2015, the combination of reshoring and FDI continued to be strong, adding 67,000 domestic manufacturing jobs. Since February 2010 (a low point for U.S. manufacturing employment), more than 249,000 manufacturing since the manufacturing employment low of February 2010, the group indicated.

However, the overall trend fell 6% from 2014 due to a strong U.S. dollar; low oil prices and shipping rates; and weaker economies in competitor manufacturing countries.

Among the reasons for reshoring and FDI documented for 2015 are government incentives, ecosystems/localization, proximity to customers, and a skilled workforce. Offshore problems that companies cited included lower quality, supply interruption, high freight costs, and delivery.

Regionally, the reshoring trend remained strongest in the Southeast and Texas, though in 2015 the West overtook the Midwest for second place among regions gaining the most jobs from offshore.

Despite the downturn, 2015 was the second consecutive year that manufacturing jobs returning to the U.S. remains equal to or slightly higher than the number of jobs leaving. By comparison, for 2000-2007, the U.S. market lost about 220,000 manufacturing jobs annually due to offshoring.

“We publish this data annually to show companies that sourcing domestically is an increasing trend in the United States,” stated Reshoring Initiative founder and president Harry Moser. “With 3 to 4 million manufacturing jobs still offshore, as measured by our $500 billion/year trade deficit, we see potential for even more growth, and we hope this data will motivate more companies to reevaluate their sourcing and siting decisions.”

Moser, the former president of machine tool builder GF AgieCharmilles, established the Reshoring Initiative to help manufacturers recognize the profit potential of embracing local sourcing and production. Among the resources it offers companies to make supply chain sourcing decisions is its Total Cost of Ownership Estimator®, a calculating tool to help account for and understand relevant offshoring costs (e.g., inventory carrying costs, shipping expenses, intellectual property risks, etc.)

SOURCE: American Machinist

How America Can Create Jobs by Andy Grove

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(Dr. Grove passed away on March 21st. He was the chairman of Intel, one of Silicon Valley’s leading high-tech companies. He wrote this article six years ago, but it is more timely now than ever.) Read more of this post

Making It In China Is Not The Bargain It Used To Be

Making it in China is not the bargain it used to be

Image courtesy H.L.I.T./flickr.

I remember when China started being a real threat to U.S. moldmakers and molders in the early to mid-1990s, and all I heard was talk of how cheap China’s labor was and how it would be impossible for U.S. manufacturers to compete. Read more of this post

Empty Talk on Manufacturing

Empty talk on manufacturing

We need politicians willing to protect us from unfair trade.

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Walmart’s Customers Too Broke To Shop

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(Nicholas Eckhart) A Walmart store that’s about to close.

Walmart is facing a “perfect storm” that’s hurting its sales growth, according to Moody’s. Read more of this post

U.S. Manufacturing Output Rises in February

U.S. Manufacturing Output Rises in February

An assembly worker works on 2015 Ford Mustang vehicles on the production line at the Ford Motor Flat Rock Assembly Plant in Flat Rock, Michigan, August 20, 2015. REUTERS/Rebecca Cook

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Marriott to Provide Customers ‘Made in USA’ Towels and Bath Mats in Its U.S. Hotels

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BETHESDA, Md. (March 10, 2016) – In a first for the U.S. hospitality industry, Marriott International (NASDAQ: MAR) announced today that it will provide “Made in USA” towels and bath mats in every guest bathroom in nearly 3,000 U.S. hotels. Buying “Made in USA” towels and bath mats benefits U.S. manufacturing communities such as Thomaston, Ga., and Union, S.C., where manufacturing company Standard Textile is producing them with 100 percent cotton fiber grown in the U.S. Read more of this post

Where Have All the Good Paying Jobs Gone?

03-11-16 industry week where have all the good jobs gone - underpaid

We finally have recovered most of the jobs that were lost in the Great Recession. Politicians and public-policy makers are celebrating the fact that unemployment is under 5%. Read more of this post

Workers are the Biggest Asset in the Evolving Manufacturing Industry

Workers are the Biggest Asset in the Evolving Manufacturing Industry

Photograph by C. Tyson

It’s not your granddad’s factory job anymore. Read more of this post

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