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Bloomberg article - Alabama automotive industry "The New Detroit"


zeitgeist57

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https://www.bloomberg.com/news/features/2017-03-23/inside-alabama-s-auto-jobs-boom-cheap-wages-little-training-crushed-limbs

 

I remember back in the early 2000's how Governor Bob Taft (a dimwitted crony of a man if there ever was one) declared to Hyundai that the Great State of Ohio didn't need to offer any tax incentives to lure the Korean car giant to build their assembly plant in Ohio - we already had a strong automotive manufacturing and supplier base in place. Alabama offered over $100MM in tax abatements and income tax incentives for Hyundai to build their proposed North American HQ and Sonata plant in their state. It worked; in just over 5 years, the Hyundai plant became one of the most advanced manufacturing facilities in the world and a city of over 75k people grew - as well as other manufacturers/suppliers - around it where there wasn't anything before.

 

After reading this article, I'm torn: while any region would benefit from this economic injection, is it too high of a humanitarian cost? People get injured and, sadly, killed every day in the push for more productivity.....certainly exponentially more so in third-world countries. But look at the high overall benefit that the area receives. Is it worth it?

 

Interesting observations that, even in 2017, the USA can have major manufacturing problems similar to sweatshops and plants in poorer parts of the planet. Again, though...is it worth it?

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Fuck Alabama. Last month I drove thru that state for the first time in my life and I was scared to death. Speed limit was 70 and my cruise control was set at 72mph. I wish I had as exaggerated but I felt like I've went back in time for 25 years in the four hours passing thru that state.

 

Back to the topic, they also have the MB plant in Tuscaloosa. Cheap operating cost down there.

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Fuck Alabama. Last month I drove thru that state for the first time in my life and I was scared to death. Speed limit was 70 and my cruise control was set at 72mph. I wish I had as exaggerated but I felt like I've went back in time for 25 years in the four hours passing thru that state.

 

Back to the topic, they also have the MB plant in Tuscaloosa. Cheap operating cost down there.

 

What's wrong boy you gay? Yeeehaw!

 

Kidding aside, for what reason? I've never been.

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Alabama has had a real problem for a long time. Despite being pro business and having industrial growth it suffers from what's known as "the Alabama brain drain". It has trouble retaining college and high school graduates and has a more people moving out than moving into state. Without a young educated workforce willing to trade money for experience who care about quality of job expirence it is a lot harder for unions to take hold. Older and more unskilled workers tend to be protectionist of the job because opportunities are fewer for them.

 

As much as people dislike unions, worker safety is one of their primary goals. Because union disincentive tactics have been efffective in Alabama this is the cost of mfg growth in Alabama - high injury rates and lower wages.

 

Alabama's cost of living is fairly low, it's beautiful there, the wages are low, the tax laws are good for business, it should be a paradise of growth and industry, but it struggles because while the workforce will work for less money, they aren't a good value for the money. This is something companies could help on their own by investing in the community but they would rather have the cheap labor force.

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https://www.bloomberg.com/news/features/2017-03-23/inside-alabama-s-auto-jobs-boom-cheap-wages-little-training-crushed-limbs

 

I remember back in the early 2000's how Governor Bob Taft (a dimwitted crony of a man if there ever was one) declared to Hyundai that the Great State of Ohio didn't need to offer any tax incentives to lure the Korean car giant to build their assembly plant in Ohio - we already had a strong automotive manufacturing and supplier base in place. Alabama offered over $100MM in tax abatements and income tax incentives for Hyundai to build their proposed North American HQ and Sonata plant in their state. It worked; in just over 5 years, the Hyundai plant became one of the most advanced manufacturing facilities in the world and a city of over 75k people grew - as well as other manufacturers/suppliers - around it where there wasn't anything before.

 

After reading this article, I'm torn: while any region would benefit from this economic injection, is it too high of a humanitarian cost? People get injured and, sadly, killed every day in the push for more productivity.....certainly exponentially more so in third-world countries. But look at the high overall benefit that the area receives. Is it worth it?

 

Interesting observations that, even in 2017, the USA can have major manufacturing problems similar to sweatshops and plants in poorer parts of the planet. Again, though...is it worth it?

 

Strickland was a jackass but inheriting the clusterfuck that Taft left behind was no help.

 

When I moved here in 2000 it seemed the state was madly in love with ole' Bobby, I don't know how people didn't see straight through his bullshit. Then he left office with a big fat IOU for the school system he "saved" which we're still dealing with today.

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i have been in automotive manufacturing for 12 years, and i can say that article is spot on. i worked for honda for most of that time, and more recently a supplier. the nonsense is on both sides. the manufacturer and the suppliers both do some ignorant things. id would definitely agree that alabama is most definitely worse especially on OSHA recordables, but all the suppliers for honda over promise and make employees work 10+ hours a day and sometimes up to 7 days a week to keep good on deliveries. hence why turnover rate is crazy high, which in turn fuels the little to no training situations. its definitely not right. but i have also been in situations at honda where i was required to do a job with little or no training.
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