Monday, August 06, 2007

"MEGA-Mistake" ???

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Remember a year or so back there was a citizen uproar about the "Mega-Site" in Augusta County when there was talk of a foreign carmaker coming to the Valley? Many argued and claimed that this "Mega-site" would destroy the valley and turn the area into a "New Jersey Jr." and life as we know it would cease to exist. In fact I believe one of those arguing this point is now running for County Supervisor in Augusta County...

It seems that foreign carmaker has instead set up shop in another state and is doing very well and took the environmental precautions that they promised... Their local workers, not ours, are happy with the company and the opportunities this manufacturer has brought to "their valley"...

Donald Lambro has some interesting facts and quotes in his commentary that appeared in the Washington Times last week...

"But last week House Democrats announced they were going to pay for a bloated, waste-ridden farm bill by raising taxes on "insourcing" companies operating in the U.S., mostly nonunion businesses that employ Americans who pay the bills in this country and keep the U.S. economy humming."

"Foreign firms doing business in the U.S. employ more than 5.1 million Americans in high-paying jobs (like Toyota, Honda, BMW) that on average pay workers $63,428 annually, 32 percent more than other U.S.-based jobs."

"That's why Mr. Paulson stressed at his briefing last week "how important [direct foreign investment] is to us, to our country. This is key. We have 5 million jobs in this country that are directly related to [foreign] investment. We've got another 5 million that are indirectly related to that."


http://washingtontimes.com/article/20070802/COMMENTARY05/108020013/1012

4 comments:

Spank That Donkey said...

Nice 'body slam' Rightside...

Dear Lord, don't tell them that the plant could have made Prius'.

Maybe they should have marketed the plant with a 100 mph zone for Al Gore's son on I-81?

turkeyfarmer said...

What most people who opposed the Weyers Cave industrial failed to understand, was that top tier industry is what will save agriculture, or more correctly "open space" in the valley, as opposed to destroying it. This is because it provides the high end salaries neccesary for executives to buy large pieces of open land, possibly putting them into easements for tax credits, therefore preserving the open spaces we all want...the truth of the matter is that the writing is on the wall for the demise of "real" farming in the valley, as costs have outpaced income potential on the typically sized valley farming operation-

Agitator said...

Yeah a large factory would have been great... until the company's economic situation changed and they closed the plant 25, 50, 75 years in the future. Its dangerous to try and base your local economy on one industry---> Danville, martinsville anyone??

RightsideVA said...

Interestingly enough this was a topic of a discussion I had last night while at the Republican booth at the Augusta County fair. It was brought up that many who were against the 1600 acre development did not acknowledge that the actual structures would have taken up about 600 acres while there would be an approximate 1,000 acre buffer zone around this plant to protect and enhance the local environment. Stuarts Draft has three large industries in Hershey, Hollister, and McKee foods. All of these are situated in areas with buffer zones that make them less noticeable. No belching smokestacks and in fact the only annoying thing I notice is the smell of almonds roasting from Hershey. I can live with that if that’s the cost of having a productive and career producing environment in the valley. There is Target distribution center but if you notice the landscaping and rolling hills it is limited in visibility.

As Turkey Farmer points out this would be more beneficial then numerous smaller business that will produce and employ less from the same area. The farms surrounding the numerous manufacturing complexes in Stuarts Draft seems to be thriving and doing well as compared to if there were instead numerous smaller business like Daily Grind coffee houses packed full of slackers drinking $6 lattes and working on their “Progressive” ways…

And what about all of the speed bumps needed to slow down the 100mph Prius Punks that the coffee houses would attract???

Agitator brings up the point that this would put too many eggs in one basket and would be devastating once the company failed. The interesting thing is that I believe we were looking at a company like Toyota building at the mega site location and this company has a very impressive business track history and towns that have had these companies come to America to produce their vehicles have done very well. And they did it WITHOUT the UNION element and the workers are more productive, happier, and more involved in their futures. As the article stated the average worker at Toyota or foreign company is making about $68,000 yearly. Not bad at all…

And lets look at the company that may fail in 25, 50, or 75 years as Agitator presents. Many businesses that fail like that are the result of not changing or evolving with technology or changing markets. The best example I can think of is GENERAL MOTORS which is a very UNION HEAVY company and once again in financial trouble.

Trouble from outrageous Union demands but demands that management agreed too knowing that somewhere down the line these demands would become due. General Motors has hundreds of people on full payroll that sit home and never even travel to the jobsite! They do nothing and Produce nothing! These people, their families, and retired union autoworkers and their families have ALL OF THEIR HEALTHCARE BILLS PAID by General motors! And management knew this when they made the deal, know it now, and are looking to be bailed out from terrible business practices!!!

I drive a General Motors vehicle and bought American to support a American company. I now read that an estimated $1,400 average is tacked on each new General Motors vehicle to pay for these Union benefits. Gonna have to think hard on the next vehicle purchase…

Companies like this and management teams that make poor decisions are the companies that fail like Agitator speaks of. Small little businesses fail at a much greater rate then a well managed larger company that has the ability to produce at a much more efficient rate… Look at all of the numerous business failures you have seen on Main street Staunton and the ones propped up like the one where Billy Shakespeare hangs out at…