Carrier is raising prices--Decided ***Before**** Trump Deal

Carrier said they still believe in the benefits of free trade. I imagine they do, the move to Mexico would have been an instant $65,000,000 a year increase in profits, unless they reduce the cost of their Mexican made product. Do you think the price would drop?

January 1st prices go up on Carrier equipment. The decision was made BEFORE the Trump negotiations. The move to Mexico that the Trump deal help stop would have saved the company $65,000,000 a year. Do you think they would reduce the cost of their products after the move to Mexico?

Carrier's parent company, said it is raising prices for its heating, ventilation, and air conditioning equipment by up to 5%, starting January 1. The decision to raise prices was first announced on November 23, the week before the Trump deal was finalized.

Until last week, the manufacturer had planned to move 2,100 jobs to Mexico to cut costs. The move would have saved United Technologies an estimated $65 million a year.

They planned to raise the prices before Trumps agreement with them. The company basically said that they are still looking for solutions to remain competitive, and still believe in the benefits of globalization.
Of course they do, they would move the company to Mexico and pocket some big $$$.

The manufacturer said its decision to raise prices was unrelated to the Carrier's decision to keep some jobs in Indianapolis.

"This agreement in no way diminishes our belief in the benefits of free trade and that the forces of globalization will continue to require solutions for the long-term competitiveness of the US and of American workers moving forward," Carrier said in a statement released last Wednesday.

www.businessinsider.com...

looking for solutions to remain competitive??

Here`s a crazy idea, maybe make a higher quality product than your competitors,people WILL pay more for quality.
speaking of competitors, don't they basically have the market cornered? who is competing against them?

a reply to: Tardacus


i would say about 70% to 80% , if not more,
of the refrigerated trailers i encounter during my work have a Carrier cooling system , they practicly own that market.

a reply to: Tardacus

Goodman, is a competitor. Last time I checked they were made in the US.
I'm sure there are many more.

a reply to: TheGreazel

Actually they (Carrier Transicold) have about as much of a market share as Thermo King. Between the two, they dominate the market for TRU's in the US.

Money stays in the US. Jobs, consumers spend, create tax revenue, money bouncing around our economy not Mexico.

a reply to: LifeMode

Agreed

originally posted by: Tardacus
looking for solutions to remain competitive??

Here`s a crazy idea, maybe make a higher quality product than your competitors,people WILL pay more for quality.

People pay more for quality "when they can afford it."

I always buy the best quality I can afford. But, sometimes my budget limits how high I can go.

a reply to: AMPTAH

Do you think that Carrier would have reduced their prices charged to the consumer after they moved to Mexico?

a reply to: seasonal

I am happy to pay more for an American made product that is produced by employed Americans. If we all bought all American products made by American workers the standard of living in the entire country would go up and we would all be better off even if paying more for goods.

originally posted by: seasonal
a reply to: AMPTAH

Do you think that Carrier would have reduced their prices charged to the consumer after they moved to Mexico?

No.

The company is in business to increase profits as much as possible. That means cutting costs and raising prices.

Only "competition" causes prices to be reduced.

I saw the interview of Carrier on CNBC today, and it's the first time I've heard any corporate executive mention considerations of "stake holders" verses "share holders".

Basically, corporations work for the share holders only.

But this Carrier executive seemed to be now considering all "stake holders", which include other people than just share holders: employees, local social and environmental impacts, etc..

In reality, reading between the lines of the interview, he revealed that 10% of their business comes from government contracts. So, if the government is upset with them, that business could be at risk. That's probably the reason Carrier decided to give Donald Trump this "apparent" win.

He also said that they are moving towards "automation" anyway, and that in a few years all those jobs will be gone. The move to Mexico was just a temporary step, on this path to modernization. They have extensive facilities in Mexico today, and the move now would have saved them money immediately. However, even the Mexicans were'nt going to keep these jobs in the long run. The jobs are on track to be replaced by machines everywhere.

So, Donald only won a temporary reprieve from the realities of technological progress.

a reply to: Metallicus

Not necessarily, the use of temp workers is like a cancer in today's manufacturing plants.
It is used to cut wages and make more $. The very large and very profitable Co. I worked for in 1996 had their own group of employees they would use to fill in when thee was labor shortages. Along with the regular full time everyone made 15-19$ an hour +bene's.
Since 2010 the plants are-75% temp labor. The Co. pays the temp agency 14$ an hour and the temps get 9$ no bene's no days off, no vacation days. The company had never been more profitable.
So just bring back manufacturing may not be the only work yet to do.

a reply to: seasonal

Even if some of what you say is true; I would rather see American temp workers getting paid than someone in another country.

a reply to: AMPTAH

YES but you will not have to buy as often because what you buy does not break and/or go out of style.

I have a drawer full of USB power adapters that don't work anymore. I would have gladly paid the price of drawer full for just 1 that still worked.

a reply to: Metallicus
Yes, work, then go get the benefits from the govt (tax payer) and then all will be well.


The rise of the permanently temporary worker
fortune.com...

The rise in temporary worker hires may be a smart business move, insulating employers in a volatile economy, or it could be creating a permanent wedge of cheaper, benefit-less workers that eventually supplants a big chunk of the full-time workforce.

a reply to: AMPTAH

Do you think that he is so caring because he knows he faces a 35% tariff?

Did you see this? He sure wasn't so friendly then.

originally posted by: MALBOSIA
a reply to: AMPTAH

YES but you will not have to buy as often because what you buy does not break and/or go out of style.

I have a drawer full of USB power adapters that don't work anymore. I would have gladly paid the price of drawer full for just 1 that still worked.

What doesn't go out of style?

All the technology I've bought have become obsolete before they have broken down.

I still use a Sony cathode tube TV in one of the rooms in my home. Had to get special cable box to decode the signals just to keep up with the changes in cable technology. Nothing wrong with my TV, but it can't show HD, and many of the movies show with "black bars" above and below because the screen format has changed, using different wide screen ratios today.

After I bought my car, the government implemented a new rule, requiring higher "emissions standards". Modern cars are built from the factory to meet those standards, but mine had to get special permission, and regular expensive testing to meet the new regulations. After fighting a few years with the hassle, I dumped the car

I have some beautiful chandeliers that require incandescent bulbs that they no longer make, because the government regulations require everything to be LED today..

I built my own computers, using the highest quality parts I could buy, thinking I could keep this for 20+ years. Then Microsoft changed the rules, and started producing Operating systems that didn't use the old BIOS motherboards, making my whole project obsolete....My computers still work with older operating systems, and older software, but new things are happening...and I'm stuck.

and on...and on...

originally posted by: seasonal
a reply to: AMPTAH

Do you think that he is so caring because he knows he faces a 35% tariff?

Did you see this? He sure wasn't so friendly then.

He doesn't care about the 35% tariff. He said they were saving 80% of the cost of production by moving to Mexico.

So, if the unit cost is $1 in the US, when production moves to Mexico, it costs $0.20, when Carrier re-imports that product government slaps 35% tariff, so $0.20 becomes $0.20 x 1.35 = $0.27. But, that's still $1.00 - 0.27 = $0.73 in SAVINGS. So, the result of the tariff is that instead of cutting their costs by 80%, they only cut cost by 73%. They still end up cutting costs by a whopping lot.

This deal was about guaranteeing they continue to get that 10% US government business.

a reply to: AMPTAH


Well, to be honest, all that trick-down tech we are seeing is the product of another problem. But it is a little off topic and don't believe Trump would try and change that part anyway.

I would like to redact "out of style"

*There goes the relevance of your last reply*

Excuse me, but I have to go buy a new fake Christmas tree again this year because like the dozen before they were all made in China.

Its not the holiday without being slowly gouged to keep China's middle class growing.

a reply to: AMPTAH

I think they were talking about labor, and the number I have read is a 65,000,000 a year. They of course still have to buy the materials, cheaper labor, and whatever else Mexico requires. Of course shipping would go up a little as well. But I but tack on another 35% on top of even the cheapest of the cheap labor and I would bet they are not making all that sweet $$$ they thought.