26 November 2016

My "Cool" Hypothetical-

Let's say you're on the Board of Directors of a large heating and air conditioning concern with its major physical plant located somewhere in the Midwest.
Just for grins, let's call this company "Harrier Heating and Air Conditioning".
After much study you find you can increase profits by reducing your labor costs if you move your manufacturing facility to Mexico. You announce your decision to make this move.

Your discussions about improving your "bottom line" take place commensurate with a presidential election. One of the major promises of one of the major candidates is to "bring jobs back to, or keep jobs in the U.S.".
You watch with interest and concern as that candidate wins the nomination of his party, then the election.
You announce that the election results will have no impact on moving your physical plant to Mexico.

What if-
That president-elect is an expert in the use of TV, Twitter, FaceBook, and Instagram?
What if... that president-elect starts constantly reminding the electorate about companies "outsourcing" their jobs, and suggesting alternative products still "Made In USA"?

Do you think that might influence you and your board in their decision to move your manufacturing plant?
This will be interesting to watch.


Old NFO said...

That it will, especially with the 'proposed' taxes on products from Mexico... :-)

Joe said...

Or maybe if your HVAC division is just a small part of a large conglomerate and the most profitable companies have government contracts that the new administration hold hostage...

Greybeard said...

"I'm don't get involved in politics."
Yes, you do, whether you know it or not.
And that fact is just about to be emphasized.

Ben Atwood said...

What if, said company, also got $5-7 million tax break to stay? That is a lot per capital when you think about the jobs saved.