Looks like European plants will be taking the American jobs and a lot of the work production as its cheaper than the dollar, the quality of work is much better and also finalizing HC Spinco to Ireland.
5 replies (most recent on top)
Wish that would be true, but it is far off.
The biggest cuts were in Europe and more to come. Not only because 1.5 plants closing due to PFAS
I guess this is just the same fear that is always and everywhere in the world spreading around (other countries are cheaper - they take our jobs)
Theu just closed plant in Poland, so I don’t know if this statement is true.
Umm.... No....
Turkey and Poland might expand some to supply EU demand. But everything west of the Danube and the Elbe (or Oder even) rivers is not getting any better anytime soon.
Why I say so:
- All-In factory wages, accounting for pension, healthcare, and benefits for most of Europe and UK are at least as high as the US.
- Transportation is tricky on a good day, painful on a bad day. For many products the factories are just in the wrong location for their supply chains to export out of Europe. (Many components/RMs would have to cross the Atlantic twice or cross both the Atlantic and Pacific to get to a market)
- Many 3M sites in Europe are let us say diplomatically... not newly built. Wroclaw-Kowalska and Corlu being notable exceptions.
- The labor situation in Western Europe is deteriorating, largely due to demographics. (See labor riots in France, general strikes in Germany)
In my direct experience, on a good day the EU and UK plants can equal USAC manufacturing costs. At worst, they can be 50%+ more, not counting tariffs or transportation of finished goods.
This is interesting to me, in my experience, EMEA is not necessarily cheaper to MFG our products, must be dependent on the business.
the company finally doing something right