Mexico Has Dropped The "Economic" ball, qué lástima!

Never a bad thing to diversify the supply chain away from China...can't trust the CCP.

 

Yes, but not in the USA, strange...huh?

DD

 

AMLO is as bad as Joe Biden. And that's saying something. Both are considered foolish people with no business acumen. Biden also happens to have dementia.

 

trust me you don't want these eye sore warehouses in your town

 

I saw your avatar and got excited, then got disappointed that you didn't post about Mexican industrialists.

The D&D is dead.

 

America Farced


Foxconn Megafactory Flop Forces Wisconsin Town to Recast Its Net
Local officials try to woo other manufacturers with infrastructure improvements that remain on Foxconn’s tab

MOUNT PLEASANT, Wis.—Nearly five years after iPhone assembler Foxconn Technology Group unveiled plans for a factory that would transform this corner of southeastern Wisconsin into a high-tech manufacturing hub, only a few buildings occupy the 3,000-acre site, a huge power substation stands largely untapped and new roads are sparsely traveled.

But Taiwan-based Foxconn remains on the hook to pay for the infrastructure improvements and land acquisition for its now-abandoned grand plans. Starting next tax year, Foxconn’s payments to a special tax district in this village of around 27,000 people will more than double to about $36 million a year and stay at that level for more than 20 years until the debt on the infrastructure is paid off.

Local leaders say they are counting on the company to continue footing the bill for hundreds of millions of dollars in water, sewer and other improvements that they hope will lure the next big fish.

“We have a terrific site that is going to be attractive to any number of different types of users,” said Jim Paetsch, executive director of the Milwaukee 7, a regional economic development partnership.

So far, recruiting another company has been tough for the nearly five-square-mile area, dubbed the Wisconn Valley Science and Technology Park.

Local officials said they spent months wooing Intel Corp. to build a chip factory, ultimately losing out to Ohio earlier this year.

Officials were also hopeful they would see a surge of jobs when Foxconn announced a deal last year to team up with electric-car maker Fisker Inc. But Foxconn instead agreed to buy the former General Motors factory in Lordstown, Ohio, with plans to build electric vehicles there.

“We view this as the long game,” said Jenny Trick, executive director of the Racine County Economic Development Corp., which helped negotiate the original Foxconn deal. “You have to plan for the best—and the worst.”

Mount Pleasant could be in a strong position since speed can be a critical factor when huge economic-development opportunities come along, said Didi Caldwell, president and founding principal of Global Location Strategies, a Greenville, S.C., site-selection firm. “I tell communities you need to be as investment-ready as possible,” she said.

Some critics think the infrastructure is more than the site will need for decades—and that it could be a matter of time before Foxconn decides it no longer wants to keep up with the payments.

“Right now, it’s a giant white-elephant-type project,” said Steven Deller, a professor in the Department of Agricultural and Applied Economics at the University of Wisconsin-Madison. “The water lines that they ran into it, the highway infrastructure that they ran into it, the electric lines that they ran into it—it’s all way overcapacity,” he said.

“I think it’s foolish to believe that starting next year, they’re going to be willing to make us $30 million payments a year for the next 24 years so that we don’t default,” said Kelly Gallaher, a local homeowner and frequent critic of the project. “As a resident and a property-tax payer, it’s terrifying.”

Foxconn declined to comment on the concerns. Its main building on the site, the company said in a statement, is “a key strategic asset to respond to market demand for Foxconn-related activities or activities that involve joint venture partnerships.”

Local officials say that if Foxconn were to pull out, taxpayers would be able to sell off the company’s land and buildings with an assessed value of more than $500 million and rely on state guarantees for part of the debt.

The area had high hopes back in 2017, when Foxconn announced a plan at the White House to build large, flat-panel screens at a huge new factory in Wisconsin. The state-of-the-art factory would employ 13,000 people and qualify for nearly $3 billion in state tax credits. Then President Donald Trump said it would be the “eighth wonder of the world.”

The company contributed $60 million toward land acquisition for Wisconn Valley and pledged to pay back some $300 million in bonds for infrastructure and land purchases, whether the plan came to fruition or not. The state and federal governments kicked in tens of millions of dollars to expand nearby Interstate 94. Ratepayers of the local utility are footing the bill for the power station on the site.

But Foxconn soon soured on the plan, citing high manufacturing costs in the U.S., while still pledging to create 13,000 jobs mostly focused on research.

At various times, the company has said it planned to make high-tech coffee kiosks, ventilators or electric vehicles at the site, though none of the plans have come through. Last year, Foxconn formally backed away from plans for a huge project and signed a new, scaled-back incentive deal with the state. Tax credits now max out at $80 million for creating nearly 1,500 jobs by 2024.

The company declined to say how many employees it has currently or what they do at the site. As of the end of 2020, it had created 579 jobs, according to its most recent filing with the state, and was eligible to receive the first $28.8 million in tax credits.​

 

Mexico can't compete with Vietnam in terms of cheap labor. Mexican workers make $7500 a year in auto parts factories and they could hire 2 workers for that in Vietnam.

I'd say If anyone dropped the ball it's Globalism.

 

Globalism is done.

 

Foxconn wouldn't have initially chose Wisconsin if Trump and Wisconsin didn't dangle hundreds of millions in subsidies to sweeten what amounted to be a dumb Jerbs First photo op that never materialized.

The situation is way worse than Mexico with Wisconsinites liable to fork up to 300 million in debt.

More like Crony Capitalism

 

Mexican Industrialists, circa 2020
This plays right into the hands of the great Industrialists of Mexico -- visionaries that they are! Business activity (and the ladies) at El Miau Miau are bursting at the seams!

Mexican Industrialists, circa 2022
AMLO has ruined our business prospects and my best laborers are 'moving' to Phoenix and El Paso! And my portfolio has suffered devastating paper losses! I have no choice but to put a lid on wages and fringe bennies. Mole Monday's are over in the maquiladora cafeteria!

 

Donezo. Especially after China invades Taiwan.

 

At some point I have to assume that Mexico is going to be a player on the world stage in a way that I don't think the US is prepared for. It might not happen in my lifetime, but it's going to happen. Then if they decide to build up a military, and have politicians that create tension based on our historical issues (namely Texas), watch out.

I'm all for Mexico developing more economically though. I think it's of great benefit to us to have avenues to cut China out of our lives, and have diversified trade relationships that don't require travel around the world.

As a guitar player myself... give me a Made in Mexico Stratocaster any day over the POS crap that comes out of China.

 

Not strange. Labor is more expensive here and we have a massive labor shortage in basically every industry right now. If we move all our supply chains to the US, where exactly do the people to operate those plants come from?

 

It will be good if Mexico thrives. But ya, there isn't going to be border tension any more than we do with Canada.

 

https://www.nytimes.com/2022/04/08/opinion/globalization-global-culture-war.html



I hope you’re right. Globalization has been a boon for world peace. But demographics are different now and should not support the globalization we saw in the 1990s and 2000s. We will have multiple global powers with there being 3-4 super markets.