| MB2 |
| (member) |
| 09/24/12 12:14 PM |
Re: GE Moving Overseas
|
Quote:
sptsman said:Quote:
Hellbender said:
Can't agree sptsman, I would if we were talking small ticket items, but not something like X-ray equipment. GE makes some huge moving machines, with millions of parts that can be made here and I'm not buying that they can't doing it today right here. I would like to see the total job loss here and better yet I like to here the HNIC announce it.
Not only are they taking the company, training engineers means they intend to take the technology there.
So, you think they sat around the boardroom table and decided to move jobs from the USA to China (or any other county), but could have kept them here for the same costs? If so, then why move? Spending millions to close a factory, build new and train new people is not something any corporation would do, if there weren't significant cost savings on the other side. It's business 101...
Why the move?
Exactly as Hellbender stated. It's not the infrastructure or jobs that the Chinese want or need. They are buying the technology that G.E. possesses.
And that, my dear, is exactly what the Chinese purchased (for pennies of the real dollar value) from General Motors when it went into receivership. It was cheaper to buy the technology than develop it themselves. It's the brains they want, not the brawn. It takes years and uber bucks to develop a new product, like the Chevy Volt, and it won't turn a profit until massive numbers of them are sold.
These large companies funnel their profits back to the location of their headquarters for future research and development.
That's why LOCATION of headquarters is almost 100% in regards to any business dependent on new technology.