http://www.huffingtonpost.com/mike-elk/ge-promotes-manufacturing_b_241944.htmlMike Elk
Campaign for America's Future
Posted: July 21, 2009 12:18 PM
Jeffery Immelt, the CEO of General Electric, has led the outsourcing charge in the past. So commentators were shocked last month when, speaking at the Detroit Economic Club, Immelt said that the United States needs to invest in American manufacturing in order to get out of our current economic crisis.
Some companies had gone overboard with outsourcing in the past and now it was time to bring that work back into the United States to create a strong economy, Immelt said at the forum. "This country ought to be, and we can be, not just the world's leading market but a leading exporter as well. GE plans to lead this effort," he said.
Immelt should heed his own advice.
While Immelt was calling for manufacturing to stay in the U.S., his company was at the same time shipping manufacturing jobs overseas by canceling an order with an American-based wind turbine maker, ATI Casting Service in LaPorte, Ind., so that GE could instead buy the parts from a factory in China.
Recently, ATI made $30 million worth of investments to buy, convert, and modernize a shuttered factory in economically ravaged Michigan so the company could provide more parts to GE as the green economy expands with federal stimulus funding. But a Chinese firm underbid ATI, and the factory faced having to lay off 302 union workers and shutter the plant.
In an aggressive bid to keep the factory open, ATI offered to match the price of the Chinese producers. GE once again said they would prefer to buy from China. The ATI plant is now closed, the jobs gone.
FULL story at link.