Foxconn: Is it Worth it?
Some people have reservations when looking into the Foxconn deal and their history when it comes to making these promises of investment and job creation. Although bringing Foxconn to Wisconsin might bring jobs it also might bring disappointment. Foxconn has a history of promising investment and job creation and not following through. In Wisconsin's case we have promised tax cuts, assistance, and other things but all of this investment from the people of Wisconsin will take 25 years to break even on and that's if they actually follow through with their promises of job creation and investment.
In places like Brazil, Pennsylvania, Jakarta, and India Foxconn has negotiated deals and investment to build production facilities and create jobs, sometimes promising upwards of fifty thousand jobs, and not even breaking ground on a new facility. Brazil was promised a 12 billion dollar investment in 2011 that has yet to materialized. In fact the location that they were going to build on has been completely abandoned. Foxconn has recently downsized some of their operations drawing suspicions to their promise of creating jobs. India was told they would receive a 5 billion dollar investment and possible job creation of up to 50,000 jobs that still hasn't happened.
One of the issues that Foxconn will face when coming to America will be changing their typical operations, a very young work force working for very little wages, to meet the standards and regulations that we have here in America. This is something that could really impact how they are able to operate because on top of training new people they will almost have to retrain themselves to operate under new standards.
Thank you for sharing- I found this very insightful yet concerning. I did not know of their history with over promising investments, so it adds another layer to the situation. I think on the forefront it is very easy to get distracted by job creation, especially since it is one of Trump's main campaign promises.
ReplyDeleteOn one hand, I feel like they won't back out on this deal because getting into the US market and having a physical plant on our soil is a huge business move for them. On the other hand, it is troubling to hear the situation about Pennsylvania. I thought you had a really good point about employment standards in the US as well. It will be more costly for them to have a plant here, but the benefits of having a plant in the US might be worth it to them. This situation has felt shifty to be from the first time I heard about it in August, so it is hard to digest Foxconn's business history.
Thanks for the added background on Foxconn's other establishments. What is the status now of other new or planned locations? Have you seen what cities in Northern Illinois are saying about jobs they hope to gain from Foxconn's Wisconsin's 'investment'?
ReplyDeleteThis was very informative for someone like me who does not know too much about Foxconn's history. The amount of jobs Foxconn plans to bring to Wisconsin is a very good thing but the past failed promises with other locations doesn't seem to appealing to me.
ReplyDeleteThank you for the update as well. Do you know how that part of the state and Illinois is reacting to this new company coming in and bringing all of these jobs?
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