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Snap-On Tools closing Newmarket facility

Skyline

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Nov 11, 2008
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3,586
I would not be surprised to see some of the lower end boxes get moved to Chinese production rather than to Iowa. Wait six months....
 
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Davefr

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Jan 7, 2010
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OR
They arent making more jobs, they're consolidating production into a facility that already exists.

Then if they can produce the same output with one plant/same workforce then they were extremely wastefull in the past.

Waste is death in this manufacturing environment.

Yes, I wish those Canadians had jobs but I'd rather see USA jobs preserved over foreign jobs.
 

lilredex

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Apr 29, 2006
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Toronto
Free trade in action.......always about a corporation's bottom line.

Bad news for sure, but I take you back to 1977 when Chrysler closed their truck centers, and said goodbye to trucks and their employees all at the same time. They came to work and found the gates locked and an "out of business" sign greeting them. Heartless, but the explanation was that they prevented any "one piece at a time" activities and other hi-jinks.
 

thrifty bill

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Jan 12, 2011
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The Mountains of North Carolina
A lot of headcount in a factory is support staff. A lot of it is the management in the office (you do not need two plant managers, two plant controllers, two production supervisors, etc). Then you have the costs to keep the place open: real estate taxes, heat, water, sewer, etc. And two countries worth of safety, environmental and health regulations to keep up with. Even on the hourly side you can have savings. Depending on the size of the operation, sometimes a 25% increase in workforce on a shift can make 2X the product. You will get more efficiency from the warehouse too.
Unfortunately, throughout my career, I had to close a lot of facilities. The real savings come from closing a plant, rather than pruning around the edges and improving productivity (often for the reasons above).
 

ive

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Mar 8, 2011
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Canada
Ok, first off. I live in Canada and i am an American too. The citizens of the USA do not have a monopoly on this continent. "America" is what Europeans, who colonized this continent call it. They refer to it as America when talking about Canada or the US just as we do europe.

American is a term owned by many countries, in the north and south. (btw, love the states.. new hampshire is where i want to retire.)

As for the snap on jobs, its a shame that good paying jobs were lost. No matter where. i am skeptical that Snap on will act on their words for the sole fact it is a business. Like my old boss told me, "No friends in business".
 

ive

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Mar 8, 2011
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Canada
on the severence issue.. any word? that can be a tricky thing. i work in maintenance in a larger sawmill up in the canadian north.. anyways our sister mill closed down next door and even though it was a union plant no severence was paid due to language in the contract that the company used saying it was a indefinate shutdown.

management recieved severnece and employess got termination papers. and no severence.. some where there as long as 38 years.

to clarify the parent company owns many other business' and senior management says it will pay severence when it has too.

sad, and i hope the snap on guys got their fair share.
 
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fordbroncodave

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Sep 15, 2009
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is it really cost effective to close an assembly line plant further away and expand the existing line? shipping costs will be through the roof for the company. i wonder how many toolboxes they put out in iowa on a record snow fall winter?
 

expatriated

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Mar 22, 2009
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SE of Disorder
Companies gotta make money and no one's job is safe forever. Seems like Snap-on gave a lot of people there a good job for a number of years.

On the other hand, I'd much rather see 100 Chinese lose their jobs than my hard-drinking, hockey-playing, strange "o" pronouncing, naturally amicable neighbors to the north.
 

fordbroncodave

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Joined
Sep 15, 2009
Messages
4,555
Companies gotta make money and no one's job is safe forever. Seems like Snap-on gave a lot of people there a good job for a number of years.

On the other hand, I'd much rather see 100 Chinese lose their jobs than my hard-drinking, hockey-playing, strange "o" pronouncing, naturally amicable neighbors to the north.

:thumbup::thumbup::thumbup::thumbup: i agree
 
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