Dell to open North Carolina Plant - Employ 1,500 !!! 11-9-04

dmcowen674

No Lifer
Oct 13, 1999
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www.alienbabeltech.com
Yes I hope there is more good news like this. A bit expensive per employee. The State paid $225 to Dell to land the plant.

11-9-2004 Dell Plans North Carolina Plant, to Hire 1,500

Dell Inc. said on Tuesday it plans to open a third U.S. manufacturing plant, based in North Carolina with 1,500 workers, in a rare example of a U.S. high-tech company expanding domestic production.

Dell is the only major U.S. computer maker to have U.S. manufacturing operations, though it also has four other production plants in Ireland, Malaysia, China and Brazil.

While all U.S. computer makers depend on electronics components from Asia, Dell's strategy is to assemble PCs as close to customers as possible, arguing that logistical and distribution costs exceed U.S. labor costs.

In a separate statement, North Carolina Gov. Mike Easley said the new plant could generate up to 6,000 additional jobs for the region and pump net revenues of $743 million into the state economy over 20 years.

The 500,000 square foot facility will cost about $60 million in the first year and receive tax credits from the state, a Dell spokesman said. The tax credit will amount to up to $225 million over 15 years, Gov. Easley said.

This is the third U.S. facility Dell has announced this year. It recently opened a sales office serving home and small business customers in Oklahoma that will employ about 700 workers, company spokesman Mike Maher said.

Dell opened an order fulfillment and distribution center in Ohio that will employ 250 people. And it set up a 500-employee North American customer service center in Edmonton, Alberta.

 

Ryan

Lifer
Oct 31, 2000
27,519
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It's good to see companies making a effort to bring jobs to the US. If they actually touted that their products are produced in the US, I coudl imagine they'd see good publicity over it (well, at least in the US) :thumbsup:
 

Engineer

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Oct 9, 1999
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My company is going to build a new gas tank factory in Georgia also. Should be a few hundred jobs. On the down side, closing 2 plants in Ohio and others around the country to move to Mexico. About 1,500 to 2,000 jobs moving to Mexico by 2006-7. :( overall to that one. (We're trying to automate to save as many as possible but Mexican labor is really hard to compete againist).
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
Originally posted by: Engineer


My company is going to build a new gas tank factory in Georgia also. Should be a few hundred jobs. On the down side, closing 2 plants in Ohio and others around the country to move to Mexico. About 1,500 to 2,000 jobs moving to Mexico by 2006-7. :( overall to that one. (We're trying to automate to save as many as possible but Mexican labor is really hard to compete againist).

Hopefully at some point soon they will realize that the Mexican plants are a mistake.

The going labor rate down here in New Orelans is $8 hr, what are they paying in Mexico 20 cents an hour like China???

 

Engineer

Elite Member
Oct 9, 1999
39,230
701
126
Originally posted by: dmcowen674
Originally posted by: Engineer


My company is going to build a new gas tank factory in Georgia also. Should be a few hundred jobs. On the down side, closing 2 plants in Ohio and others around the country to move to Mexico. About 1,500 to 2,000 jobs moving to Mexico by 2006-7. :( overall to that one. (We're trying to automate to save as many as possible but Mexican labor is really hard to compete againist).

Hopefully at some point soon they will realize that the Mexican plants are a mistake.

The going labor rate down here in New Orelans is $8 hr, what are they paying in Mexico 20 cents an hour like China???


It's over $1.50 per hour in Reynosa (Across the border from McAllen, TX) now. After all is said and done, it costs $3.05 per hour in Mexico (all benefits, etc) vs an average costs of $20.55 an hour in the US (part of that average does have a union plant at over $35.00/hour because of high pensions and retiree medical care). The only saving grace (if you can call it that) is that shipping must be very dense packed trucks to avoid going negative - hence the gas tanks now being made in GA (soon) vs shipping them from Mexico (not many per truck).