Dometic to Close Plant, Move Awning Production to Mexico

[InfinityJim]

Here is the release that came in today...

January 23, 2020

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by:
RV PRO Staff

Dometic has announced the intention to close its LaGrange, Ind., manufacturing site.
“This is a tough day for our employees in LaGrange,” said Scott Nelson, president of Dometic North America.
Dometic will work closely with state and local government officials to coordinate services that will help the affected workers with job search assistance, education and training opportunities, and to minimize the difficult impacts of the layoff.
“We fully understand the consequences for affected employees and their families, and this is a difficult message to deliver, but this activity is necessary at this time,” said Nelson. “As part of our continuous strive to become more efficient, transferring our awnings production to our existing facility in Mexico will ensure that our manufacturing meets our customer’s requirements for lead time, quality and cost.”
The company had a meeting with the union representatives and employees this afternoon to discuss the plans



We "RV'ers" need to think real hard who we support, and when companies do this we should let them know with who we choose to purchase from.

[indiana journey]

So, will the price of dometic awnings be dropping?
So much winning.
Indiana Journey

[wildtoad]

Before people get their panties in a wad, it looks like Dometic is trying to do the right thing in regards to working to help the affected employees. I have no idea why Dometic felt the need to do this, but I’m sure it was a hard decision, always is. Perhaps due to local work rules they had become the high cost producer of a commodity product (that people will buy on price) and could no longer afford to make them in Indiana, using union laborers, paying high wages and benefits.

[PJStough]

Originally Posted by wildtoad

Before people get their panties in a wad, it looks like Dometic is trying to do the right thing in regards to working to help the affected employees. I have no idea why Dometic felt the need to do this, but I’m sure it was a hard decision, always is. Perhaps due to local work rules they had become the high cost producer of a commodity product (that people will buy on price) and could no longer afford to make them in Indiana, using union laborers, paying high wages and benefits.

Perhaps, not. There is a better chance that Dometic can make more money making them is Mexico. Plain and simple!

[baraff]

Originally Posted by PJStough

Perhaps, not. There is a better chance that Dometic can make more money making them is Mexico. Plain and simple!

Exactly. It's all about the Benjamins.

[mokurt]

Yep it's all about the share holders making more money.
Also has something to do with the new trade agreement I bet.

[Spdracr39]

High cost of labor contributes to a significant reduction in those Benjamin's and yes, I know it's hard to believe, companies are in business to make money not just serve our pleasure. Labor Unions increase the cost of doing business and do not contribute to increased productivity.

[roscoesdad]

A lot of posters on this forum are TOTALLY against any company making a profit. Now a few will come back with the reply disputing
this, even though they just stated how they feel in this post.

[PJStough]

I believe everyone understands that companies have to make a profit to stay in business, however, the question is, how much profit?



Too many people seem to believe wages in the USA should be driven down to the level of wages in Mexico, China and the rest of the world so companies can maximize profits, and want the USA to become just another Third World country.

[JpalmerCass]

Originally Posted by spdracr39

High cost of labor contributes to a significant reduction in those Benjamin's and yes, I know it's hard to believe, companies are in business to make money not just serve our pleasure. Labor Unions increase the cost of doing business and do not contribute to increased productivity.

A number of studies show that in the building trades union labor is more productive. Probably because the pay and conditions are better and that attracts better talent: talent chases money in the blue collar world as well as the white collar one. Laws of economics and all that.

[SteveNSue]

I've worked at a company that wanted to open a plant in Mexico. One visit by the head of manufacturing and they tabled the idea. Second company did open a plant in Mexico but when they had to have an armed escort for the Americans crossing the border to go to work they decided to close the plant and move it to Kentucky.
Mexico is not cheap to start with. The individual employees are not paid much, compared to American workers, but there are so many "fees" added to their labor cost that the cost difference is negligible. Because Mexico does not have a structured tax system they nationalized the public utilities to collect monies. Use electricity, gas, railroads, ship ports, or water and you are paying their tax through them.

[Ron750]

Putting aside politics, I prefer to buy USA made products. Any recommendations for USA made awnings?

[WantAB]

Originally Posted by PJStough

Perhaps, not. There is a better chance that Dometic can make more money making them is Mexico. Plain and simple!

Or staying in business.

[twogypsies]

Wow! This is already going waaaaay off topic.