Western Railroad Discussion > Progress Rail considers complete closure of EMD LaGrange plant

Progress Rail, subsidiary of Caterpillar and owner of locomotive
builder Electro-Motive, issued the following statement today, in
which it announced that it is considering closing the Electro-
Motive plant in LaGrange, Illinois. The plant currently
manufactures diesel engines for use in Electro-Motive
locomotives.

"Progress Rail, a wholly owned subsidiary of Caterpillar Inc.,
recently announced that it is contemplating the closure of its engine
manufacturing facility in LaGrange, Illinois.

"Progress Rail routinely reviews its strategic footprint and, as a
result, is evaluating how to use its existing manufacturing space as
efficiently as possible to remain a competitive supplier to the rail
industry.

"Progress Rail is contemplating transitioning manufacturing and
assembly to Progress Rail facilities in the United States, including
Winston-Salem, North Carolina, as well as transferring select engine
and locomotive components to outside suppliers.

"If the decision is finalized, the closure would impact approximately
600 full-time positions in LaGrange related directly to engine
manufacturing. It would not affect the nonmanufacturing-related jobs
on the campus, which include approximately 600 administrative
(office) roles and engineering support roles.

"Should we move forward with the decision to relocate production, we
will work to mitigate the impact on employees, their families and
the community."

So much verbiage, 6 paragraphs when all the flack had to say was:

"It's all about the Benjamins!"

Robert Pierce
Sugar Land, TX
SWRails.com

If I am interpreting the 5th paragraph correctly, it "affects" 600 manufacturing jobs, but does not "affect" 600 pencil pushers.

That is correct, the non revenue producers get protection.

https://www.trainorders.com/discussion/read.php?2,4476231

Chinese make locomotive, free shipping

CajonRat Wrote:
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> Chinese make locomotive, free shipping

The Chinese could be bidders on a joint venture for either GE in Fort Worth or Progress Rail.

Not saying it will happen but it might.

Posted from Android

That does it. Time to bring back Alco, Baldwin, and Fairbanks Morse!

wigwag Wrote:
-------------------------------------------------------
> That does it. Time to bring back Alco, Baldwin,
> and Fairbanks Morse.

No, Time to give up on American railroading! Seems all the damn builders are! If there comes a time we have to look at crap built from over seas, I'll damn sure hang it up!

It happened in the early 60's already... Krauss Maffei from Germany,

Dave

Txtrainman59 Wrote:
-------------------------------------------------------
> wigwag Wrote:
> --------------------------------------------------
> -----
> > That does it. Time to bring back Alco, Baldwin,
> > and Fairbanks Morse.
>
> No, Time to give up on American railroading! Seems
> all the damn builders are! If there comes a time
> we have to look at crap built from over seas, I'll
> damn sure hang it up!

Geeze! What happened to all the hype about "bringing American jobs back to America"? "...keeping jobs in the USA?" and "creating more jobs for all Americans".

Uh, Texas and the Carolinas aren't in the US?

Out

You will likely see more of this uprooting in the next few months. In many industries. The new tax bill encourages the acquisition of industrial robots, so companies that have been thinking about them, may decide to do it. Designing a new factory from the ground up is often a better idea than trying to retrofit improvements to an older place. If a state or county wants to give you a bundle of money to do it, so much the better.

So, Erie, La Grange, etc, Fact 1: Much of your traditional work place ie that in place is reaching reiirement age, Fact 2:
Your new hires will have to be able to afford to live near your plant, Fact 3: Your plant location will have to be in an area
which is a attractive to new hires in terms of taxes, liveability and other amenities. Erie, La Grange?

Out

callum_out Wrote:
-------------------------------------------------------
> So, Erie, La Grange, etc, Fact 1: Much of your
> traditional work place ie that in place is
> reaching reiirement age, Fact 2:
> Your new hires will have to be able to afford to
> live near your plant, Fact 3: Your plant location
> will have to be in an area
> which is a attractive to new hires in terms of
> taxes, liveability and other amenities. Erie, La
> Grange?
>
> Out


You forgot one other point. Texas and South Carolina are "right to work" states.
You don't have to deal with those pesky unions!

The big point is that in NC they have the big heavy equipment axle plant that has excess capacity. So save $ by combining tasks in the same plant. Pretty simple really.
RB

PHall Wrote:
-------------------------------------------------------
> callum_out Wrote:
> --------------------------------------------------
> -----
> > So, Erie, La Grange, etc, Fact 1: Much of your
> > traditional work place ie that in place is
> > reaching reiirement age, Fact 2:
> > Your new hires will have to be able to afford
> to
> > live near your plant, Fact 3: Your plant
> location
> > will have to be in an area
> > which is a attractive to new hires in terms of
> > taxes, liveability and other amenities. Erie,
> La
> > Grange?
> >
> > Out
>
>
> You forgot one other point. Texas and South
> Carolina are "right to work" states.
> You don't have to deal with those pesky unions!

They are also low cost energy states for wholesale business buyers. That becomes a major consideration with very energy intensive processes like manufacturing.

PHall Wrote:
-------------------------------------------------------
> callum_out Wrote:
> --------------------------------------------------
> -----
> > So, Erie, La Grange, etc, Fact 1: Much of your
> > traditional work place ie that in place is
> > reaching reiirement age, Fact 2:
> > Your new hires will have to be able to afford
> to
> > live near your plant, Fact 3: Your plant
> location
> > will have to be in an area
> > which is a attractive to new hires in terms of
> > taxes, liveability and other amenities. Erie,
> La
> > Grange?
> >
> > Out
>
>
> You forgot one other point. Texas and South
> Carolina are "right to work" states.
> You don't have to deal with those pesky unions!

PHall's comment trumps (NO pun intended) callum's. There's a reason Alabama will soon become the second largest state for auto production.

PHall Wrote:
-------------------------------------------------------
> callum_out Wrote:
> --------------------------------------------------
> -----
> > So, Erie, La Grange, etc, Fact 1: Much of your
> > traditional work place ie that in place is
> > reaching reiirement age, Fact 2:
> > Your new hires will have to be able to afford
> to
> > live near your plant, Fact 3: Your plant
> location
> > will have to be in an area
> > which is a attractive to new hires in terms of
> > taxes, liveability and other amenities. Erie,
> La
> > Grange?
> >
> > Out
>
>
> You forgot one other point. Texas and South
> Carolina are "right to work" states.
> You don't have to deal with those pesky unions!


That's what it's all about. They have the "right to work" for less.

Boeing wages in North Charleston SC are competitive for a place with a much lower cost of living.

About $21 plus benefits in South Carolina is good money. $10 less than Seattle.

https://www.postandcourier.com/business/deciphering-boeing-s-wages-can-be-a-numbers-shell-game/article_82be7051-e637-589e-966e-2724e37a9ee3.html

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