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MineralMan

(146,317 posts)
Wed Nov 30, 2016, 03:46 PM Nov 2016

Carrier? It was already taking a hit from consumers.

So Der Drumpfenführer talked Carrier into not shipping its furnace manufacturing to Mexico? Well, maybe not so much. Carrier is part of the industrial conglomerate United Technologies. As it turns out, none of those famous brands of furnace and AC manufacturers are still they same as they were a couple of decades ago. They've all become part of holding companies. Carrier, as a standalone corporation hasn't existed for some time.

So, to save some money on manufacturing furnaces, United Technologies had planned to move some furnace manufacturing to Mexico. It would save a bit, due to lower labor costs, but transportation costs cut into those savings, too. However, after the move was announced, consumers began to take a bit of umbrage. When you need a new furnace or AC unit, there are lots and lots of brands out there from which to choose.

According to one HVAC company I'm familiar with from my website work, Carrier sales had begun to drop after the move was announced. Enough so that the local company was strongly considering dropping their Carrier dealership status. It seems that customers wanted equipment built in the USA.

In the meantime, an arch competitor for Carrier in the Midwest, Goodman Industries, was purchased by Daikin, a Japanese manufacturing company. Why? Because they wanted to have a factory in the United states to build furnaces for that market. Goodman furnaces have a strong reputation for reliability and cost considerably less than equivalent Carrier units anyhow. Better warranties, too. Now, Daikin is conducting a heavy ad campaign in the Midwest for their equipment, and people are listening.

So, maybe Carrier was already having second thoughts about that move. It probably wasn't so difficult for Trump to convince them to reverse their plans. I can't say for sure, but Carrier was already having some trouble with competing products.

For those who don't know, there aren't nearly as many furnace and AC manufacturers as there are brands of those products. In fact, there are only a few in the US. Whatever brand of equipment you buy, it's one of the many brands made by just a few companies, and all of those companies are part of a corporate holding company these days. There just aren't any wholly-owned manufacturers of that equipment any longer.

Carrier, for example, is also Payne and Tempstar when it comes to furnaces. Goodman is also Amana and a couple of other brands. Same stuff, but different colors and prices. All of the recognized brand names of residential HVAC equipment are made by just a handful of manufacturers.

If you're in the market, do a Google search for the brand you're considering. On the Wikipedia page for that brand, you'll find out what big corporate holding company it's part of and what other brands are made by the same people. You can save a buck if you're smart about making a choice, especially if you're considering one of the brands that are household words. Shop their alternative brands for big savings.

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Carrier? It was already taking a hit from consumers. (Original Post) MineralMan Nov 2016 OP
And United Technologies also has many defense contracts. guillaumeb Nov 2016 #1
Indeed it does. Makes jet engines for fighter aircraft, too. MineralMan Nov 2016 #2
And products that carry the name of a corporation, e.g. GE, may be made by someone else FarCenter Nov 2016 #4
Tag carrier Ohioblue22 Nov 2016 #3

guillaumeb

(42,641 posts)
1. And United Technologies also has many defense contracts.
Wed Nov 30, 2016, 03:51 PM
Nov 2016

Perhaps Trump mentioned this, or promised something?

Recommended.

MineralMan

(146,317 posts)
2. Indeed it does. Makes jet engines for fighter aircraft, too.
Wed Nov 30, 2016, 03:57 PM
Nov 2016

Those big manufacturing conglomerates have their oily fingers in all sorts of industries. It's good to dig into corporate holdings when you are talking about brands that used to be stand-alone corporations. Fingers in every pie, it seems.

Consolidating brands is everywhere. A lot of once-important brand names are just part of a massive corporate entity these days. It's always interesting to dig into your favorite brand of something. Often, that brand is now just a name, not a corporation any longer.

 

FarCenter

(19,429 posts)
4. And products that carry the name of a corporation, e.g. GE, may be made by someone else
Wed Nov 30, 2016, 09:01 PM
Nov 2016
http://www.geappliances.com/ge/service-and-support/electronics.htm

Another example would be Apple smartphones, which are not made by Apple.
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