Eastern Railroad Discussion > EMD may move out of LaGrange manufacturing

This article speculates that EMD manufacturing in LaGrange may move to a Progress Rail facility, formerly CAT facility, in Winston-Salem:

Specifically, the article includes the statement: "Caterpillar confirmed Saturday that one of its subsidiaries, Progress Rail Services Co., may close its engine-manufacturing plant in LaGrange, Ill., potentially affecting more than 600 jobs."

http://www.journalnow.com/news/local/a-possible-consolidation-by-caterpillar-may-benefit-winston-salem-plant/article_f4c7ff64-5523-5287-aee6-573f558d6b4a.html

Dave

Hmmmm.... Labor costs in Illinois vs labor costs in North Carolina? What are the chances?

Illinois, New Jersey, New York, etc are expensive places to do business.

Lackawanna484 Wrote:
-------------------------------------------------------
> Illinois, New Jersey, New York, etc are expensive
> places to do business.

...and California.

There was some speculation a few years ago about prime mover production being moved to Lafayette Indiana, where other large Cat engines are made, which would make a certain amount of sense, but since when has sense had anything to do with these kind of decisions? Moving production to North Carolina when your locomotive plant is in Indiana seems counter-productive to me, and I wonder about the other company functions still in LaGrange?



Edited 1 time(s). Last edit at 02/01/18 10:31 by junctiontower.

junctiontower Wrote:
-------------------------------------------------------
> There was some speculation a few years ago about
> prime mover production being moved to Lafayette
> Indiana, where other large Cat engines are made,
> which would make a certain amount of sense, but
> since when has sense had anything to do with these
> kind of decisions? Moving production to North
> Carolina when your locomotive plant is in Indiana
> seems counter-productive to me, and I wonder about
> the other company functions still in LaGrange?

I don't wonder. They will eventually go.
ALLEN

Back when the United States was the leader of the industrialized world, we had factories that could (and did) meet any fabrication and construction challenge. The EMD plant at LaGrange was one of those facilities.

In our Full Speed Ahead race to become a third world nation, we have lost so many of our manufacturing masterpieces. Looks like LaGrange, already reduced to a shadow of it's former glory, will be completely lost.

When one considers the thousands of locomotives that were built at LaGrange, and the esteem that plant had in the railroad industry, it will surely be a sad day when the fat lady sings.

Silly me. I thought EMD had already left LaGrange.

GE had been building its diesel engines in a separate facility from the assembly plant for years. No real surprise there. I thnk Alco used to do that also--Auburn, NY vs Schenectady.

Moving to North Carolina is "offshoring lite," you don't quite get third world labor costs, but you do get a right to work state, and probably a big wad of tax bennies from the state. It'll be interesting to see how many of the jobs actually move, and how many are automated out of existence completely.

march_hare Wrote:
-------------------------------------------------------
> GE had been building its diesel engines in a
> separate facility from the assembly plant for
> years. No real surprise there. I thnk Alco used
> to do that also--Auburn, NY vs Schenectady.
>
> Moving to North Carolina is "offshoring lite," you
> don't quite get third world labor costs, but you
> do get a right to work state, and probably a big
> wad of tax bennies from the state. It'll be
> interesting to see how many of the jobs actually
> move, and how many are automated out of existence
> completely.

The new tax law and its expensing immediately provisions make robots a LOT cheaper to install. Even companies which had a good mix of robots and human employees are going to give this a serious look.

I don't think we've even begun to see the rush to robotic manufacturing / kiosk ordering and labor eliminating tools. That will be breath taking in its speed.

Look for the anti-union state ... that's where Caterpillar will go.

Will MacKenzie
Dundas, ON

The U.S. has not ceased to be an important manufacturer. Look at the statistics, and you'll see that the U.S. is manufacturing more than ever.

What's changed is that manufacturing no longer requires anywhere near the number of production workers that it once did. Robotics have taken over. The relatively new Hyundai plant in Montgomery, Ala. can build 400,000 vehicles and 700,000 engines per year. (Some of the engines go to the Kia plant up I-85.) It employs only 3,000 people! A traditional Detroit plant would have hired many times that headcount for the same output.

So far, no politician of either party has had the nerve to come clean with the American people and explain this. The trend will not be reversed. In fact, there is still more to be done with robotics. And if we don't do it, the Europeans and the Asians certainly will.

The Chinese already outsource much labor related activities to Viet Namh and Thailand, it's not
just a US phenomenon.

Out



Edited 1 time(s). Last edit at 02/01/18 16:28 by callum_out.

Lackawanna484 Wrote:
-------------------------------------------------------
> march_hare Wrote:
> --------------------------------------------------
> -----
> > GE had been building its diesel engines in a
> > separate facility from the assembly plant for
> > years. No real surprise there. I thnk Alco
> used
> > to do that also--Auburn, NY vs Schenectady.
> >
> > Moving to North Carolina is "offshoring lite,"
> you
> > don't quite get third world labor costs, but
> you
> > do get a right to work state, and probably a
> big
> > wad of tax bennies from the state. It'll be
> > interesting to see how many of the jobs
> actually
> > move, and how many are automated out of
> existence
> > completely.
>
> The new tax law and its expensing immediately
> provisions make robots a LOT cheaper to install.
> Even companies which had a good mix of robots and
> human employees are going to give this a serious
> look.
>
> I don't think we've even begun to see the rush to
> robotic manufacturing / kiosk ordering and labor
> eliminating tools. That will be breath taking in
> its speed.

a web search of "automation predictions" is not good.......

66

So the DIESEL POWER GIANT will probably fold its tent and quietly leave Honalee for the NWIP. I never thought I would see the day. But in a country reduced to selling "insurance" to each other, as a primary industry, it's not surprising. Ross was right after all, that big sucking sound was our jobs being sucked away."



Edited 3 time(s). Last edit at 02/01/18 15:45 by railwaybaron.

ctillnc Wrote:
-------------------------------------------------------

>
> So far, no politician of either party has had the
> nerve to come clean with the American people and
> explain this.

Ross Perot could not have made it clearer when he ran for POTUS.

goneon66 Wrote:
-------------------------------------------------------
> Lackawanna484 Wrote:
> --------------------------------------------------
> -----
> > march_hare Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > GE had been building its diesel engines in a
> > > separate facility from the assembly plant for
> > > years. No real surprise there. I thnk Alco
> > used
> > > to do that also--Auburn, NY vs Schenectady.
> > >
> > > Moving to North Carolina is "offshoring
> lite,"
> > you
> > > don't quite get third world labor costs, but
> > you
> > > do get a right to work state, and probably a
> > big
> > > wad of tax bennies from the state. It'll be
> > > interesting to see how many of the jobs
> > actually
> > > move, and how many are automated out of
> > existence
> > > completely.
> >
> > The new tax law and its expensing immediately
> > provisions make robots a LOT cheaper to install.
>
> > Even companies which had a good mix of robots
> and
> > human employees are going to give this a
> serious
> > look.
> >
> > I don't think we've even begun to see the rush
> to
> > robotic manufacturing / kiosk ordering and
> labor
> > eliminating tools. That will be breath taking
> in
> > its speed.
>
> a web search of "automation predictions" is not
> good.......
>
> 66

The labor hours required to build a vehicle have been dropping for decades.

I was in a McDonald's the other day, and people were lined up to use the self service kiosk. No need to go to a counter, and order.

Posted from Android

Lackawanna484 Wrote:
-------------------------------------------------------
> march_hare Wrote:
> --------------------------------------------------
> -----
> > GE had been building its diesel engines in a
> > separate facility from the assembly plant for
> > years. No real surprise there. I thnk Alco
> used
> > to do that also--Auburn, NY vs Schenectady.
> >
> > Moving to North Carolina is "offshoring lite,"
> you
> > don't quite get third world labor costs, but
> you
> > do get a right to work state, and probably a
> big
> > wad of tax bennies from the state. It'll be
> > interesting to see how many of the jobs
> actually
> > move, and how many are automated out of
> existence
> > completely.
>
> The new tax law and its expensing immediately
> provisions make robots a LOT cheaper to install.
> Even companies which had a good mix of robots and
> human employees are going to give this a serious
> look.
>
> I don't think we've even begun to see the rush to
> robotic manufacturing / kiosk ordering and labor
> eliminating tools. That will be breath taking in
> its speed.

Robotics are happening at the plant in which I work...setup for automated tuggers/carts to haul finished products, automated presses, robotic coil assembly,
etc. I hate to say it's scary, but it is.

Three years to retire....three years to retire....three years to retire.....

Illinois is losing net population in real numbers. It is losing a lot more in migration to other states. I may be off on exact figures but around 1950 the state had 25 house members and is down to 16 with wavering between losing one or two. Still a lot of positives but once you reach a tipping point.....

NC - my niece just got her engineering degree from Iowa turning down U of I high costs. She is practically debt free and has a new job with Ingersoll-Rand in NC and her pay is very good. Iowa helped her get Intern well paying jobs while going to school at Rockwell and Boeing.

Bob



Edited 1 time(s). Last edit at 02/01/18 18:23 by robj.

Lots of civil unrest coming. Mass automation will get people killed.The powers that be will have to learn the hard way.