Deere going going ??

I read a few articles regarding this.

My conclusion - JD is looking after their profits and shareholder profits, rather than take a hit due to perceived coming market conditions. They must be hurting with a 1obn profit last year. And the CEO's kids probably need new shoes too.

Grain/Wheat/Soy prices down, less profit for farmers - farmers choose not to upgrade equipment in a down year - coupled with high interest rates for borrowing. Result - less sales of farm equipment, less workers needed.

But moving production of cabs and skid steers to Mexico, is just taking advantage of cheaper steel and lower labor costs without the pesky UAW union strikes.

 

Hmm tough decision. Average hourly wage in Mexico is $2.50 with no union. While in America average John Deere employee makes $25 with a union.

The company I work for pays $23 an hour and 1.5 times that for overtime which we generally get 50+ hours of every two weeks. Everyone wants pay raised to $30 an hour. The boss said he is ok with that but overtime will no longer be authorized so only 40 hour work weeks.
So I’d go from $3500 every two weeks to $2400. I’m ok with working 60-70 hours a week.

 

Yes I am sure labor cost is a major driver in this situation but I would also say it’s probably somewhat of a preventative maintenance type situation considering that the us farm economy is fixing to make the current trucking market look awesome…

 

And I don't fault them for it, I'm sure the corporate suite isn't taking a hit.

 

I'm sure the price of their units won't go down though.

 

John Deere ends support of ‘social or cultural awareness’ events, distances from inclusion efforts

 

That's because it's not a requirement in Mexico. They are not foolish enough to discriminate against their own.