Foxconn 'Remains Committed' to Wisconsin Plant and Promise of Eventually Employing 13,000 Workers

[luebri]

I live in Milwaukee, WI and don't know anyone who doesn't have a job that actually wants one. That is in the most urban area in the entire state, so I have no idea where these 12,000 people are going to come from to fill these jobs. I do enjoy living here, taxes are low, and there is a alot to do. But the taxes and tax breaks are probably too low (doubt you'll ever hear me say that again!) resulting in roads that are absolutely awful and poor education.

I am also a Wisconsin resident, you can call previous Governor Walker a lot of things but he is certainly not fiscally irresponsible. He took our state out of an Illinois like insolvency, which was a result of their and our previous democratic Governor, to having a substantial rainy day fund, in 8 short years. He has done this via 2 methods, 1 by telling any business that will listen that Wisconsin is pro-business, which somehow with all these "tax breaks" has worked brilliantly. You can't give tax breaks on taxes that don't exist... its better then those companies paying taxes somewhere else. The 2nd method was by the controversial method of reigning in the abuse of government employee unions negotiation tactics and the scams associated with it.

Either way neither has much to do with Foxconn, Foxconn has just been caught in the middle. The state, which I believe had poorly, made the narrow decision of not electing Walker to a 3rd term. (Which a 3 term Gov. has only been elected once in state history) Every dem opponent, including Evers, to Walker ran on neutering the Foxconn deal, because they had nothing else to attack him on. Ultimately he narrowly lost in one of the stingiest states int he USA only because winning a 3rd term is very very difficult in this state.

So all this is back story... if you read the article, you read right away "With its inability to meet the 260 hiring target last year, it failed to earn a tax credit of up to $9.5 million." I will note this again. "With its inability to meet the 260 hiring target last year, it failed to earn a tax credit of up to $9.5 million." This is not a tax break, its a tax credit, and if Foxconn misses the goals setup by Governor Walker then there is no "welfare", nothing! Its a very well thought out deal! The whole deal is like this!

The only reason Foxconn has gotten cold feet is they in the middle of the deal, is my fellow Wisconsin voters narrowly voted to change things up and in doing so the state went from very pro business... to whatever the hell Evers is. (i.e. not pro business). I don't blame Foxconn from getting cold feet, our new idiotic Governor is being totally combative, why should they invest here anymore?

Also Evers has no power as the rest of the state is still totally powered by conservatives (did I mention we are very much a swing state)

So if this new Governor continues to get his way we will revert back from our great financial state and sub 3% unemployment and go back to the previous democratic regime of 9% unemployment and robbing from the Transportation fund to pay public sector pensions because we chased all the tax payers away! Because companies are evil, and give tax credits to companies that pay the lion share of taxes via employing thousands of employees are apparently evil?!
[doublepost=1555735480][/doublepost]

I am also a Wisconsin resident, you can call previous Governor Walker a lot of things but he is certainly not fiscally irresponsible. He took our state out of an Illinois like insolvency, which was a result of their and our previous democratic Governor, to having a substantial rainy day fund, in 8 short years. He has done this via 2 methods, 1 by telling any business that will listen that Wisconsin is pro-business, which somehow with all these "tax breaks" has worked brilliantly. You can't give tax breaks on taxes that don't exist... its better then those companies paying taxes somewhere else. The 2nd method was by the controversial method of reigning in the abuse of government employee unions negotiation tactics and the scams associated with it.

Either way neither has much to do with Foxconn, Foxconn has just been caught in the middle. The state, which I believe had poorly, made the narrow decision of not electing Walker to a 3rd term. (Which a 3 term Gov. has only been elected once in state history) Every dem opponent, including Evers, to Walker ran on neutering the Foxconn deal, because they had nothing else to attack him on. Ultimately he narrowly lost in one of the stingiest states int he USA only because winning a 3rd term is very very difficult in this state.

So all this is back story... if you read the article, you read right away "With its inability to meet the 260 hiring target last year, it failed to earn a tax credit of up to $9.5 million." I will note this again. "With its inability to meet the 260 hiring target last year, it failed to earn a tax credit of up to $9.5 million." This is not a tax break, its a tax credit, and if Foxconn misses the goals setup by Governor Walker then there is no "welfare", nothing! Its a very well thought out deal! The whole deal is like this!

The only reason Foxconn has gotten cold feet is they in the middle of the deal, is my fellow Wisconsin voters narrowly voted to change things up and in doing so the state went from very pro business... to whatever the hell Evers is. (i.e. not pro business). I don't blame Foxconn from getting cold feet, our new idiotic Governor is being totally combative, why should they invest here anymore?

Also Evers has no power as the rest of the state is still totally powered by conservatives (did I mention we are very much a swing state)

So if this new Governor continues to get his way we will revert back from our great financial state and sub 3% unemployment and go back to the previous democratic regime of 9% unemployment and robbing from the Transportation fund to pay public sector pensions because we chased all the tax payers away! Because companies are evil, and give tax credits to companies that pay the lion share of taxes via employing thousands of employees are apparently evil?!

[doublepost=1555735672][/doublepost]Also in regards to Manufacturing. MFG is the #1 job creator in WI. A lot of this country has changed, but we are still MFG's through and through. Regarding wages, you are just one google search away from what Controls engineers and CNC machinists and Service technicians make in our state. It is by no means $2/hr. It might not be Miami Beach money, but it gets the job done here.

 

[hagjohn]

I said it was bs and a scam and got laughed at, by some, when the news came out and I still say it's bs and a scam.

There is still a lot of manufacturing in this country but we have to support it. I always try to buy the made in the USA products, when I can.

 

[jlc1978]

Also in regards to Manufacturing. MFG is the #1 job creator in WI. A lot of this country has changed, but we are still MFG's through and through. Regarding wages, you are just one google search away from what Controls engineers and CNC machinists and Service technicians make in our state. It is by no means $2/hr. It might not be Miami Beach money, but it gets the job done here.

It's not that manufacturing is dead but that it is different. It used to be you could get a manufacturing job out of high school, such as on a production line, and make a good living. Many of those jobs are disappearing as manufacturing becomes more high tech, so the jobs now require a much different skill set and fewer people to produce the same amount of product. That higher productivity keeps a company competitive. Competition for people who have those skills drives up wages; you can'y just take a kid out of high school and turn them loose on a CNC machine. Education is part of the problem,; I have friends who would hire more but can't find enough people who can do some basic math and algebra to be able to properly do the job. We as a society need to realize the way we look at jobs needs to change and adapt to stay competitive.

 

[PinkyMacGodess]

The whole thing was nothing more than a PR stunt. There will be no jobs, no long term benefit to the state or workers in Wisconsin.

A solar cell plant opened up here, and the building was repainted, and labeled, and sat unused for about 8 months. They even paid to repave the parking lot. Then all of a sudden they were looking for employees. Lines out the door. Big plans for 'well paying jobs'. 'Employment' lasted for, according to memory, 4 or 5 months. Then the building, still labeled, sat vacant for months, then the corporate sign came down, and the 'FOR LEASE/SALE' signs went up.

Total tenure of the 'plant' was just over a year. At least they painted the building, and replaced the cracked asphalt, so it's not a rundown eyesore. It used to be the Sears Service Center for the area, then JCPenny leased half of it, and they both dumped it.

And they called it progress...

 

[allanfries]

Yeah and employees there will have to work for way below min wage to make it worth while. Not happening.

 

[Tech198]

i wonder what the plant will be used for *rolls eyes*

 

[MacDann]

I'm a former Southeast Wisconsin resident who left because of the exorbitant taxes that were imposed upon residents and property owners. I knew more than one retiree who had to sell their homes and move out of state even though their home was paid for because of the ever increasing property taxes.

Yes, a big part of those taxes went to public employee's pension funds - but not all of them. And those taxes paid for an excellent infrastructure and high quality educational system as well.

We didn't have a problem paying for these things, but the burden they imposed upon people living on a fixed income was a crime. It drove many lifelong residents out of the state.

What Scott Walker did to Wisconsin was a crime, and I'm glad to see him gone. The Foxconn deal is just another example of his jaded approach to letting business benefit on the backs of the taxpayers.

MacDann

 

[BuddyTronic]

The whole thing was nothing more than a PR stunt. There will be no jobs, no long term benefit to the state or workers in Wisconsin.

I don’t know for sure, but I think once the USA-China trade thing is resolved, the promise will be fulfilled. It’s a bargaining chip.

 

[jlc1978]

I don’t know for sure, but I think once the USA-China trade thing is resolved, the promise will be fulfilled. It’s a bargaining chip.

Foxconn is Taiwanese

 

[Lee_Bo]

https://www.engadget.com/2019/04/17/foxconn-boss-terry-gou-is-running-for-president-of-taiwan/

Hate to say it, but the WI facility probably just went on the very back burner.

 

[BuddyTronic]

Foxconn is Taiwanese

Oh Jeez. I didn’t realize that. I am wrong then. What’s the delay? Trump and Cook made this deal I thought. It MUST go through as promised because Trump said so. this was how Trump was creating USA jobs and how Apple got to repatriate cash for lower tax rate. Foxconn will come through.

How’s my take on it sound now?

Thanks for pointing out the Taiwan thing, I appreciate it because I need to know

 

[jimbobb24]

Yep, American business has been shortsighted for profit. Now we have generations of the American buying public who simultaneously bemoan the loss of jobs, while also buying the cheaper product made elsewhere. People will have to get introduced to the notion of buying local simply costs more. Want jobs here, vote with your wallet. The other side to this is there is little in the way of a qualified worker base to produce high end electronics on the scale we see done in Asia. That could be changed with more emphasis in trade school training etc. College is simply unnecessary for many people. They leave school in debt with a degree that is essentially useless. Unless it requires a special skill, what is the point anymore? We need more trade schools and vocational programs affiliated with high schools.

I have to buy my iPhone, iMac, PS4, Sony TV, BMW, etc local? How local? Can I buy from another state or do I need to keep it just in my county?

Agree about the trade schools. The college obsession is ridiculous.

 

[MacDann]

I have to buy my iPhone, iMac, PS4, Sony TV, BMW, etc local? How local? Can I buy from another state or do I need to keep it just in my county?

Agree about the trade schools. The college obsession is ridiculous.

This is especially ironic for me, as when I lived in Wisconsin the city I lived in (Port Washington) had a thriving local economy with locally owned businesses that provided nearly everything we needed for the most part.

Walmart moved in and destroyed that. We saw friends and neighbors lose their livelihoods when Walmart came to town and ran them out of business. Yes, you can say that they weren't competitive, but how can local businesses compete with a retailer of that scale? No matter what, there will always be people who are going to buy based on price, and that's what many did.

One of our neighbors owned a pharmacy, one of two in town, both of which did quite well. They were within a few years of selling out and retiring. Walmart showed up with an advance crew and came to them one day.

"Sell us your customer list or we'll run you out of business in six months."

They really had no choice. They sold out. They also lost a lifetime of equity in their business, which they closed shortly after. He went to work as a pharmacist in the northern suburbs of Milwaukee. They were devastated, as was much of their life's savings, which was invested in the pharmacy.

I go out of my way to patronize local businesses. Yes, it costs me more, but I know my money is staying right here in my community, and the owners are doing the same. A good example is my local Ace Hardware. I pay a heck of a lot more for stuff there than I would at the local big box home improvement stores, both of which are maybe within 15 minutes. But the Ace is closer, better staffed, and the owner lives nearby. I know the money I spend there stays mostly in my community.

MacDann

 

[monroerr]

I was wondering if that was why United Airlines started a daily non-stop flight from SFO to Madison this past year. It is a very odd direct link for flights out of SFO. Something similar happened in Charleston, SC when Alaska started non-stops to Seattle after Boeing moved into North Charleston. It was the first transcontinental flights CHS had ever seen.

 

[luebri]

I'm a former Southeast Wisconsin resident who left because of the exorbitant taxes that were imposed upon residents and property owners. I knew more than one retiree who had to sell their homes and move out of state even though their home was paid for because of the ever increasing property taxes.

Yes, a big part of those taxes went to public employee's pension funds - but not all of them. And those taxes paid for an excellent infrastructure and high quality educational system as well.

We didn't have a problem paying for these things, but the burden they imposed upon people living on a fixed income was a crime. It drove many lifelong residents out of the state.

What Scott Walker did to Wisconsin was a crime, and I'm glad to see him gone. The Foxconn deal is just another example of his jaded approach to letting business benefit on the backs of the taxpayers.

MacDann

I beg you to tell me how Scott Walker was responsible for high taxes in WI, when that was the entire backstory, and the results have proven, have been his success?

 

[PickUrPoison]

You said several times "manufacturing is dead in the US ... unless you're willing to work for $2/hr". These are your words. You know damn well that $2/hr is slave wages and we're willing to accept that (along with human rights abuse and environmental damage) so we can get our crap for cheap. I never said I don't care; if I didn't I wouldn't be writing this.

I'm proud of what this nation once was and what it will become one day. Sadly, today we're just a bunch of MBAs, investment bankers, logistic managers, import/export managers and a few software engineers sprinkled in. When we lose our next war because we can't make ball bearings anymore, then things will change. But, unlike half of America, and apparently you too, I am not a defeatist.

First the straw man, now the ad hom. Lovely.

For the third time, I will describe the reality—as I see it—of the state of factory manufacturing jobs in the US. Stating reality is not defeatist and it doesn’t mean I agree with how things are or don’t care about manufacturing in this country or workers in other countries. If you think that’s what I’m saying, that’s on you; it’s all in your head and you’re wrong. Read my words carefully:

For economic reasons manufacturing is dead in the US, for the most part. Those jobs aren’t coming back, and the former factory workers who think politicians can or even want to change that need to deal with reality: those jobs are never coming back. (Unless you’re willing to work for $2/hr.)

Note I do not say “But hey, we can get our crap for cheap so who cares” or “we should be happy slave labor and complete disregard for worker safety and the environment exists somewhere in the world so we can take advantage of it and get our crap super cheap”. Those are your words, not mine.

You don’t speak for me. You aren’t even disagreeing with what I wrote, so I have no idea why you’re quoting me. You’re just ranting. So leave me out if it unless you have an issue with what I write. If you disagree with my assessment of the state of American manufacturing—written in italics above—feel free to reply to me. But stop quoting me if you merely want to post a rant; you do realize that so far, you’ve not disagreed with a single word I’ve said, right?

 

[jmgregory1]

I don’t know for sure, but I think once the USA-China trade thing is resolved, the promise will be fulfilled. It’s a bargaining chip.

There is no way, regardless of the trade deal, that Foxconn will ever produce anything in volume or hire 13,000 employees in Wisconsin. It just doesn’t make fiscal or logistical sense, which is why so many people have picked apart the deal from the beginning.

 

[luebri]

There is no way, regardless of the trade deal, that Foxconn will ever produce anything in volume or hire 13,000 employees in Wisconsin. It just doesn’t make fiscal or logistical sense, which is why so many people have picked apart the deal from the beginning.

Who cares if the number is 13,000? The deals tax REBATES are setup to be scalable based on job production. If this ends up being 4,300 jobs and thus the amount of tax rebates are 1/3 of what the maximum the deal was built to accommodate then what is the problem? Creation for 4,300 jobs and creation of new job sector / industry in our state would be a wonderful thing!

 

[jmgregory1]

Who cares if the number is 13,000? The deals tax REBATES are setup to be scalable based on job production. If this ends up being 4,300 jobs and thus the amount of tax rebates are 1/3 of what the maximum the deal was built to accommodate then what is the problem? Creation for 4,300 jobs and creation of new job sector / industry in our state would be a wonderful thing!

I never said anything about rebates. My point is that there will never be a manufacturing plant with any number of thousands of employees. And as far as the tax credits go, you do realize that the state and township have already borrowed and spent millions of dollars buying property and doing infrastructure improvements for this make believe factory? And that the debt has now caused the town’s credit rating to be downgraded - because the credit agencies know full well that this whole thing was and is a boondoggle. A farce.

 

[luebri]

That area is and has been booming with or without Foxconn, that infrastructure will be utilized either way. The interstate has been expanded between the Illinois state line and Milwaukee with the whole notion of being a huge straw that sucks the cash out of the anti business policies of Illinois yet commerce rich Chicago metro. So... that is worse case scenario.

Foxconn and the Walker Trump regime's did not do this just to dick over Mount Pleasant, WI. That seems to be where you believe they are coming from, if that is the case it makes no sense.

The reason this thing is getting scaled down is because in November Wisconsin went from one of the most pro business Governors (the positive results of the WI economy are literally undeniable) to a liberal empty suit that is doing everything he can do to erase anything Walker touched, because that is what is extremist base wants. That is his sole agenda. If I was Foxconn, I would have cold feet to, because the rug totally got pulled out from them extremely narrowly by the WI voter.

The Wisconsin state line used to have a slogan that said "Wisconsin is Open for business" when you crossed the state line. Gov. Evers took those down his first week in office... it is a thinly veiled way of saying he is anti-business.

 

[BuddyTronic]

There is no way, regardless of the trade deal, that Foxconn will ever produce anything in volume or hire 13,000 employees in Wisconsin. It just doesn’t make fiscal or logistical sense, which is why so many people have picked apart the deal from the beginning.

They promised though... But my opinion is not that valuable on this topic. There are many things I’d have to learn about.

 

[DownUnderDan]

This is what happens when government and politics gets in the way of business and free markets. Absent these fundamentally unfair tax incentives that favor one company over another, the notion that a business would know in advance how many employees it will eventually hire to manufacture a technology it hasn't even developed or committed to yet is absolutely absurd.

A free market means you have no manufacturing. Besides free market is a myth. Do you think the Taiwanese are playing by those rules? Free market was spun as a line to allow American business to be shut down and jobs lost off shore to make higher profits for the few. Nothing more.

 

[bushman4]

Foxconn is waiting to see how trade tariffs play out. Also watching to see if Apple continues to increase or decrease sales
Factory could be ready to go in several months once Foxconn sees the need

 

[jmgregory1]

Foxconn is waiting to see how trade tariffs play out. Also watching to see if Apple continues to increase or decrease sales
Factory could be ready to go in several months once Foxconn sees the need

Really? You think Foxconn or any company for that matter can have a high tech factory built and up and running in a few months? They don’t even know what product they’d make at this point. So let’s say they figure that out quickly, the ONLY way they’d be able to start production quickly would be if 95% of the production was automated. But even then, getting the logistics in place to supply raw materials will take time and resources (infrastructure) to make it possible to run a large high volume plant.

 

[MacDann]

I beg you to tell me how Scott Walker was responsible for high taxes in WI, when that was the entire backstory, and the results have proven, have been his success?

This predates Scott Walker. It's been that way since at least the 1990s. His play to break the unions was just part of the problem.

Manufacturing has always been strong in Wisconsin and will continue to be for years. It's the basis for a great deal of the state's economy, much as recreation for the FIBs is. Wisconsin has had the infrastructure and the workforce that's geared towards manufacturing for over a century, which has provided the basis for much of the economy of southeast Wisconsin, in particular.

Walker merely tried to make the teachers and government workers the scapegoat, and in doing so alienated a great deal of voters, who in turn made sure he wasn't reelected. That's the way the system should work and it did. Hopefully the damage he did can be reversed in a short time, despite the efforts to perpetuate some of his policies as he exited the office.

Cross the state line coming north on I-43 and enjoy the cheese and porno. As it was once proposed for the slogan on the license plates, "Come Smell Our Dairy Air".