Monday, November 23, 2009

Emerson Electric Shrugs

From Manufacturing and Technology News:

Emerson Electric Votes With Its Feet, Saying The Government Is Destroying American Manufacturing Nov. 17, 2009

The federal government is "doing everything in [its] manpower [and] capability to destroy U.S. manufacturing," says David Farr, chairman and CEO of Emerson Electric Co., in a presentation at the Baird 2009 Industrial Conference in Chicago Ill., on Nov. 11. In comments reported by Bloomberg, Farr added that companies will continue adding jobs in China and India because they are "places where people want the products and where the governments welcome you to actually do something. I am not going to hire anybody in the United States. I'm moving. They are doing everything possible to destroy jobs."

In his Powerpoint presentation available on the Emerson Electric Web site, Farr notes that the federal government is damaging prospects for U.S. economic growth with a $1.41 trillion federal deficit (10 percent of GDP); $12 trillion in government debt that will grow to $20 trillion in 10 years; a policy of printing money; a "non-targeted $800-billion stimulus"; bailouts for Wall Street and the automobile companies; the prospect for cap and trade legislation; a "government takeover" of health care to the tune of more than $1 trillion; increasing taxes and regulations; and a "lack of U.S. $ support" for manufacturing. The global stimulus "soon will fade," says Farr.

Emerson Electric did major down-sizing in response to the recession (14% decrease in headcount and shut down 75+ facilities) and plans to build back up over seas, leaving the increasingly interventionist U.S. Government behind, and unfortunately U.S. workers as well.

A few choice slides from his PowerPoint presentation:

Slide #7

Slide #11

Slide #13

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