made in china

Made in China (for now)

Outsourcing is the bane of American manufacturing… except for in a little town in Michigan named Saginaw.  The great wrecks of the rest belt dot the town.  Meanwhile one Nexteer Automotive is adding jobs by the dozens.

Who is injecting money into the American economy?  If you were to follow the money trail your answer would be “China.”

In 2010 the national Chinese firm Aviation Industry Corporation bought the factory from General Motors.  The previous owners had been determined to sell the plant or demolish it.  The Chinese are determined to make a profit.  I believe the Chinese are correct in this case, otherwise they would not be investing in new machinery, technology, and above all workers at the same plant that General Motors had given up on.

The lynch pin in the success of the factory under its new leadership has been a stellar relationship with the factory’s union. Careful and respectful negotiations were made concerning wages.  Bloated union contracts were watered down; however, the terms were still generous for the plant’s union.  New employees are paid less than half of what they would have been paid ten years ago.  This matters little to the workers whom are just happy to be employed.  Over 600 hundred jobs have been added to the factory in the last two years.  More are on the way.

Many workers had apprehensions about the foreign acquisition of Nexteer Automotive.  Some worried the firm would be liquidated.  Others were concerned the experience and technological knowledge of the employees would be sponged from the plant and the factory itself would be leveled.  These fears have been unfounded.  Rather than taking away from the plant the Chinese have pledged to invest over 15 billion over the next couple of years.  Nexteer Automotive is quickly putting in cutting edge systems to secure the factory’s future.  The only criticism Aviation Industry Corporation has of Nexteer Automotive is the factory is not expanding fast enough.

While General Motors, the previous owner of the Nexteer Automotive, had seem only a money pit Aviation Industry Corporation found a gem.  The American worker is second to none; it is a proven fact that on average Americans work more diligently and with greater output than any other country in the world.  The Chinese are simply cashing in on this hard-won fact.  In addition, the highly developed infrastructure throughout American and the sunk costs of existing factories means that future developers will also invest in America.  We are the best and most economic choice. In virtually every industry American leads the way with a culture of intrepid determination, it is only right manufacturing is coming back to America.

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