Seriously do you not understand these plants will be highly automated unlike plants in China? The employee skill level required will be significantly higher on average than a plant in China.
Foxconn isn't stupid. Wisconsin taxpayers better pay up big or they will bail. LCD screens are a commodity, final cost is all that matters.
Seriously do you not understand these plants will be highly automated unlike plants in China? The employee skill level required will be significantly higher on average than a plant in China.
At some point in automation , shipping cost savings will overtake labor cost increases.Apple and Samsung supplier Foxconn has reportedly replaced 60,000 factory workers with robots.
One factory has "reduced employee strength from 110,000 to 50,000 thanks to the introduction of robots", a government official told the South China Morning Post.
Right? Just live on campus like Foxconn China lolThat'll teach you.
Since the plant site hasn't been announced, I think it premature to worry about the commute. I bet land speculators are hanging on Walker like stink on Walker.
It depends on what one calls welfare. Metals mines on federal land pay no royalties. If one looks at royalty rates charged by other property owners for similar mines, the subsidy works out to over a million dollars per employee for some mines.Anyone have any idea what the record is for such corporate welfare is? Three billion/one quarter of Wisconsin's annual income is a humongous bribe.
To lure Foxconn Technology Group to Wisconsin, state residents will have to do more than just forgo taxes from the Taiwanese electronics giant. They will have to pay cash — writing checks for up to $200 million a year.
The subsidies for the deal would amount to nearly 50 times the previous record paid by Wisconsin taxpayers to secure a manufacturing plant in the state. Instead of getting the previous state standard of 7 cents in tax credits for every $1 in qualifying payroll checks to workers, Foxconn would get 17 cents in credits — a change that will require sign off from lawmakers.
And because Wisconsin already waives all taxes on manufacturing profits in the state, these incentives represent not a lost opportunity at collecting revenues but an obligation to pay cash to Foxconn out of the state treasury for up to 15 years for a total of up to $3 billion. That figure doesn't account for the still undisclosed amount that local governments will have to provide in additional incentives.
Steve Deller, a professor of applied economics at the University of Wisconsin-Madison, hopes lawmakers will look at the agreement very carefully before signing off. He pointed out that a plant located in Racine or Kenosha County — the likely sites — will be very close to the state line.
A lot of these jobs are going to be going to people in Illinois. They're going to be commuting. The question is how many?" he said.
Todd Berry, president of the Wisconsin Taxpayers Alliance, said it was difficult to predict whether the project would ultimately cause the state to gain or lose tax revenue.
“The short answer is we don’t know,” Berry said. “In some ways, we may have a better sense of what we will pay out … than we know about what the benefits will be.”
Hah, incentives don't aren't even forgone tax revenue...they're cash money.
http://www.jsonline.com/story/news/...h-year-state-residents-up-15-years/519687001/
And ahem...
Damn, even with state income taxes on the workers, it would take decades or more to get the money back and that's not even taking in account how many of the employees would be from Wisconsin. Maybe not a great deal after all.
Hell, that's $15,384 per person per year at full employment of 13,000 and that's for 15 years. I had assumed it was tax breaks, not straight out cash payments and had no clue that they don't tax manufacturing profits. The ole "Laugher" (replaced the Laffer curve because it's more accurate) curve on full display there.
This, exactly.Great news if it happens. We've been here before with Foxconn. Back in 2013 they said they were going to build a $30 million plant in PA and it never happened. http://money.cnn.com/2013/11/22/technology/foxconn-plant/index.html?iid=EL
I think IL needs to send WI a thank you card.
Are they going to import workers? Chinese companies have a history of not hiring regionally.
And read this article.
In this part of the Midwest, the problem isn’t China. It’s too many jobs.
"WARSAW, Ind. — Each day at Zimmer Biomet headquarters, machinists on one robot-assisted factory floor churn out about 3,000 metallic knee parts. They are facing pressure to crank up the pace as the population ages and demand soars.
But the artificial-bone giant is grappling with a steep downside of the nation’s low unemployment rate: It is struggling to find enough workers, despite offering some of the region’s best pay and benefits. Forty positions sit open.
Other manufacturers in Kosciusko County, home to roughly one-third of global orthopedic device production, are running into the same problem."
Full story
Anyway you cut it, this is huge. Trump/Walker are taking credit for it. Gonna totally fuck up my commute.
http://www.jsonline.com/story/news/...res-wisconsin-foxconn-announcement/512077001/
What hi-tech jobs? Workers feed a production machine, run a smoke test and package the product for shipping. If 10% need to know more to do more, we will be lucky. Fork lift operators and truck drivers.