Eastern Railroad Discussion > GE to end locomotive production in Erie

Looks like the end is near for the hallowed halls of Erie:

http://trn.trains.com/news/news-wire/2017/07/27-erie-ends

LiveWire2 Wrote:
-------------------------------------------------------
> Looks like the end is near for the hallowed halls
> of Erie:
>
> http://trn.trains.com/news/news-wire/2017/07/27-er
> ie-ends

Very, very sad!  Can't say I am surprised but it is not good. 

I am still amazed that some bought the line that there was enough business for both Ft Worth and Erie.  The day that GE approved the construction of Ft Worth, this day became inevitable.

.



Edited 2 time(s). Last edit at 08/05/17 16:12 by darkcloud.

The day GE announced they would build a new, non union loco building facility in FW, the handwriting was on the wall for Erie. GE, like CAT, is strongly anti-union. Its a sad day for longtime, loyal employees at Erie, just like the EMD workers at London, Ontario.

nygiant Wrote:
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> The day GE announced they would build a new, non
> union loco building facility in FW, the
> handwriting was on the wall for Erie. GE, like
> CAT, is strongly anti-union. Its a sad day for
> longtime, loyal employees at Erie, just like the
> EMD workers at London, Ontario.


That's hitting the nail squarely on the head!
It is all about reducing costs ... and one of the biggest costs is labor. Cut that either by reducing number of workers ... or by paying them less than a living wage. Big business is only focused on the bottom line in the next quarter.

Will MacKenzie
Dundas, ON

darkcloud Wrote:
-------------------------------------------------------
> NYSWSD70M Wrote:
> --------------------------------------------------
> -----
> > I am still amazed that some bought the line
> that
> > there was enough business for both Ft Worth and
> > Erie.  The day that GE approved the
> construction
> > of Ft Worth, this day became inevitable.
>
>
> Not really, the railroad environment was quite
> different when the FW facility was first planned.
> At the time it was quite conceivable that there
> would be enough demand, both here and abroad, to
> support both facilities.
>
> But everyone is an expert when looking back at the
> past....

Not really.  Erie and La Grange before it could build 1000 units per year.  The market is rarely good enough to need that much capacity. 

I said it then (look it up) and I am saying it now, the talk about the need for all that capacity was to keep the workforce motivated in Erie while GE built their replacement.  If GE needs more than what Ft' Worth can build, they will look to better utilize what they have and as a last resort - add to the Texas operation.  They are not and never were going to maintain two overheads.  GE has been complaining for years about their returns (ROI) in the locomotive business.  Two plants was not going to solve that problem.

https://www.bloomberg.com/news/articles/2017-07-27/ge-to-cut-575-jobs-at-century-old-plant-as-cost-pressures-mount

Nothing in this article indicates Erie is closing.



Edited 1 time(s). Last edit at 07/27/17 09:09 by elu34ch.

Not a railroader, so, an honest question: Is there any chance that, with all the infrastructure already in place, that a 3rd-party business may want to buy the facility in order to be an outsourced means of repair/rebuild? Just wondering if there'd be a market for something like that, given it's location in relation to the entire northeast to the mid-atlantic to the mid-west. I can't see NS wanting to send work to something like this, given that they have the operation at JBS, but, thinking of short-lines, perhaps, or maybe even CSX itself, if they can get it done quicker & cheaper in a setting such as this vs higher labor costs internally. Not sure if the logistics of getting stuff there and back would negate any potential savings.

A key factor, also, is the increasing requirements
in the export market that their locomotives be
built in their countries. India a good example - -
900+ units of a 1000 order are to be built in that
country. That was a non-negotiable stipulation
in order to get the contract. According to local
news reports, some manufacturing of export 'kits"
will remain in Erie after locomotive production ends.

A number of years ago I was able to tour GE - Erie. If GE paid the people in Fort Worth the same wages and benefits, it would still be cheaper to operate than the Erie plant. Parts of the Erie plant date to the early 1900s and is spread out in a number of buildings and multiple floors. Lots of moving of components between buildings during the manufacturing process. I was there in the summer and I can imagine the cost of snow removal to keep things going during the winter would be a factor as well.

Charlie

Big business is only focused on the bottom line in the next quarter.

And to their shareholders, which happen to be us....whether it be through direct stock ownership, pension funds, or mutual funds.

It is unfortunate the jobs are leaving Erie, but at least they are not leaving the USA.

elu34ch Wrote:
-------------------------------------------------------
> https://www.bloomberg.com/news/articles/2017-07-27
> /ge-to-cut-575-jobs-at-century-old-plant-as-cost-p
> ressures-mount
>
> Nothing in this article indicates Erie is closing.

No but they will no longer build locomotives there except for prototypes..  For that matter, La Grange is still open too.



Edited 1 time(s). Last edit at 07/27/17 12:37 by NYSWSD70M.

The climate between labor and management has been poisoned for decades. The IUE proudly announced their success in strangling production during one BNSF order. GE paid penalties on that.

Loyal employees in Erie? Maybe there are some. It's been discussed here in detail.

Posted from Android

elu34ch Wrote:
-------------------------------------------------------
> https://www.bloomberg.com/news/articles/2017-07-27
> /ge-to-cut-575-jobs-at-century-old-plant-as-cost-p
> ressures-mount
>
> Nothing in this article indicates Erie is closing.

No GE Erie is not closing just ending the building of locomotives, Erie will for the time being still have about 2000 employees and alot of what will be done is R&D for the Ft Worth plant.

Posted from iPhone

CR6079 Wrote:
-------------------------------------------------------
> elu34ch Wrote:
> --------------------------------------------------
> -----
> >
> https://www.bloomberg.com/news/articles/2017-07-27
>
> >
> /ge-to-cut-575-jobs-at-century-old-plant-as-cost-p
>
> > ressures-mount
> >
> > Nothing in this article indicates Erie is
> closing.
>
> No GE Erie is not closing just ending the building
> of locomotives, Erie will for the time being still
> have about 2000 employees and alot of what will be
> done is R&D for the Ft Worth plant.
>

It really is only a matter of time until all the support functions at Erie are consolidated with locomotive production at Ft Worth.
ALLEN

reel_smooth Wrote:
-------------------------------------------------------
> Not a railroader, so, an honest question: Is there
> any chance that, with all the infrastructure
> already in place, that a 3rd-party business may
> want to buy the facility in order to be an
> outsourced means of repair/rebuild? Just wondering
> if there'd be a market for something like that,
> given it's location in relation to the entire
> northeast to the mid-atlantic to the mid-west. I
> can't see NS wanting to send work to something
> like this, given that they have the operation at
> JBS, but, thinking of short-lines, perhaps, or
> maybe even CSX itself, if they can get it done
> quicker & cheaper in a setting such as this vs
> higher labor costs internally. Not sure if the
> logistics of getting stuff there and back would
> negate any potential savings.


Very unlikely, in my opinion. More likely is someone could buy the locomotive division of GE Transportation.

GE certainly could sell the transportation business if it wanted to, and somebody felt the business was worth what GE wanted.

Given the labor situation in Erie, that would be a matter of interest to a prospective purchaser, I'd think.

Posted from Android