“Why can’t Dell retool its Forsyth County manufacturing facility and begin making here those laptop computers that now are in demand?”
It’s an excellent question, one for which we’ve not seen or heard an answer from Dell. But suffice it to say that the likely answer – from Dell’s standpoint – is that it’s cheaper to build them elsewhere, most likely overseas, than to invest capital to modify the production line here.
And that supposition on our part is just the very reason that state government and local governments all across North Carolina should pause now and re-evaluate their philosophies on offering incentives to businesses and industries that consider locating here.
It’s probably safe to say that state and local governments together never again will offer an incentives package totaling approximately $300 million. Editorially, we learn from our mistakes. We’ll not support such a plan again. It’s just not worth the risk and the hurt we’ve seen as Dell downsized the last few months, and especially during the last week.
The preferred cure for ills caused by situations such as the Dell closing would be for the U.S. Supreme Court to end nationwide – at all levels of government – the practice of offering incentives to prospective business and industry. But absent that, changes in incentives philosophies should include placing lower limits on total packages and putting more emphasis on companies first proving they have a long-term commitment here.
Just for the sake of discussion, we’d suggest some procedure in which companies first come here for a period of time – maybe five years – before they qualify for any state or local financial assistance. Yes, that would be a huge change in the way it’s done. But does anyone disagree that something about this process must change?
Doesn't it cost money to train the unskilled workers in Mexico and third party providers? Who pays for these costs? We all know the answer to this one!
I'm quoting "Mexican labor costs basically are 10% of US costs, according to AMTAC in Washington!" Well, this being the case, wouldn't the shipping and handling costs add up to more than 10%? Did no one think this S & H money would be added back to the cost of anything consumers buy?
Taxpayers would like to know who pays the salaries for all the coalitions, non-profit organizations, and Good Jobs First in Washington that, like politicians, sit back and dole out decisions that's certainly not good for America, let alone North Carolina, but yet, politicians hop on the bandwagon, because someone in Washington says so. Let's look at common sense "if it sounds too good to be true, it probably is!" I'm sure no one in politics understands facts and figures and this is why when the "Mr. Slick comes to town with his presentation and meets with the local, state, and federal politicians, they don't want Taxpayers to know they don't know nor understand what's going on nor how private businesses run. After all, they couldn't hold a job in the private sector and this is why their in local, state, and federal jobs! They also feel "it's not their money". Taxpayers feel this type of thinking is what put America into bankruptcy!
Taxpayers have the right to put an end to INCENTIVES! THIS SHOULD BE DONE IMMEDIATELY, AS GETTING PEOPLE'S HOPES UP FOR A 'TEMP' JOB (AND MOST INCENTIVE-TYPE COMPANIES ARE JUST TEMPORARY),AND IS NOT STABILITY, LET ALONE GOOD FOR OUR CHILDREN AND GRANDCHILDREN!
Keep and eye on Unilin in Thomasville, it's coming too.