Glowing example of Obama Admin policies destroying jobs in America... State, National, International, posted by Jim, a resident of the Another Pleasanton neighborhood neighborhood, on Nov 11, 2009 at 9:13 pm
Emerson Electric laying off 20,000 since 2008 but expanding overseas. The CEO states that the Obama Admin is destroying manufacturing in America. Democrats...how do you defend the Obama Admin policies that result in this?
Emerson’s Farr Says U.S. Is Destroying Manufacturing
By Will Daley
Nov. 11 (Bloomberg) -- Emerson Electric Co. Chief Executive Officer David Farr said the U.S. government is hurting manufacturers with regulation and taxes and his company will continue to focus on growth overseas.
“Washington is doing everything in their manpower, capability, to destroy U.S. manufacturing,” Farr said today in Chicago at a Baird Industrial Outlook conference. “Cap and trade, medical reform, labor rules.”
Emerson, the maker of electrical equipment and InSinkErator garbage disposals with $20.9 billion in sales for the year ended September, will keep expanding in emerging markets, which represented 32 percent of revenue in 2009. About 36 percent of manufacturing is now in “best-cost countries” up from 21 percent in 2003, according to slides accompanying his speech.
Companies will create jobs in India and China, “places where people want the products and where the governments welcome you to actually do something,” Farr said.
The unemployment rate in the U.S. jumped to 10.2 percent in October, the highest level since 1983. Emerson, which Farr said employs about 125,000 people worldwide, has eliminated more than 20,000 jobs since the end of 2008 to lower expenses.
“What do you think I am going to do?” Farr asked. “I’m not going to hire anybody in the United States. I’m moving. They are doing everything possible to destroy jobs.”
Emerson, based in St. Louis, fell 7 cents to $41.35 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have risen 13 percent this year.
Unsupported ‘Attack’
“This attack isn’t supported by the facts,” Kevin Griffis, a spokesman for U.S. Commerce Secretary Gary Locke, said today in an e-mail from Singapore, where they are attending the Asia-Pacific Economic Cooperation meetings.
“This administration has made a significant commitment to U.S. manufacturing, including reforming the country’s health insurance system to bring down costs and make American companies more competitive globally,” Griffis said.
Mature markets such as the U.S., Western Europe and Japan continue to decline in importance and the company will keep investing in emerging markets, Farr said during the presentation.
“We as a company today are putting our best people, our best technology and our best investment in these marketplaces to grow,” he said. “My job is to grow that top line, grow my earnings, grow my cash flow and grow my returns to the shareholders. My job is not to shrink and roll over for the U.S. government.”
Growth Strategy
Emerson’s growth strategy includes some acquisitions and continued investment in technology. The company has identified “megatrends” such as resource scarcity, the environment and the demand for more wireless connectivity that are shaping its growth initiative.
The company had $1.7 billion in sales last fiscal year connected to energy efficiency through demand for products such as variable-speed controls and digital compressors, and it plans to increase that amount to about $5 billion in five years, Farr said.
In renewable and alternative-energy markets, Emerson had 2009 sales of $50 million and plans to increase that to more than $800 million in five years.
“But you are not going to see Emerson going out there with fancy commercials or sitting at the right hand of some president, talking about this,” Farr said. “We do it.”
Posted by Vice Versa, a resident of the Another Pleasanton neighborhood neighborhood, on Nov 11, 2009 at 9:57 pm
The US government isn't going to roll over for companies who are not willing to contribute to the higher standard of living in the U.S. v. countries where labor is cheaper and restrictions more lax.
Cap and Trade - beneficial to some companies where no benefit existed before
Medical reform - how is this hurting a large business like Emerson? Especially when it hasn't even passed or been implemented yet?
Labor rules - Like what? Safety? Is that a bad thing?
Please, this guy is looking for an excuse to do what companies have been doing for years - why not pin it on Obama on the way out? Wonder what kinds of bonuses the top brass have been earning? Decrease costs, increase profits! The American Way! Screw the workers!
Posted by Pleasanton Parent, a resident of the Pleasanton Meadows neighborhood, on Nov 11, 2009 at 11:23 pm
......kind of a stretch there. While its true Obama isn't doing anything to attract manufacturing (or encourage it to remain in the states) the reality is this has been going on since JFK.
Posted by phil, a resident of the Downtown neighborhood, on Nov 12, 2009 at 6:57 am
I agree, it's a stretch (but one that's on Fox News everynight) - how can you lay blame on a president that took over a complete mess that's been in place for 8+ plus years? Does anyone really think a Republican administration could stop all this bleeding?
Posted by little m, a resident of the Another Pleasanton neighborhood neighborhood, on Nov 12, 2009 at 8:42 am
To me, the continuous blaming of Obama seems to over simplify the problem. That perspective becomes a "boogie man" mentality to a more complicated problem. Let's assume O moves on ... problem gone??? NO! Still there. It takes a deeper analysis and a much more innovative solution set to get things on the right track again.
Posted by Parent of Two, a resident of the Val Vista neighborhood, on Nov 12, 2009 at 9:48 am Parent of Two is a member (registered user) of Pleasanton Weekly
It may be oversimplifying to blame Obama, but the fact remains that he hasn't done ANYTHING to fix the economy. Orchestrating government takeovers of certain industries doesn't help the overall economy, it just props up those industries temporarily.
What happened to all that "hope and change" that Obama promised? Apparently, businesses don't believe in it. Maybe once we're all out of work and in a depression, the rest of you will realize that you were sold a big steaming pile of lies.
Posted by Bill, a resident of the Castlewood neighborhood, on Nov 12, 2009 at 10:30 am
Dont worry...Obama will just print more money.
I cant believe that people actually put Bush (looser) in the same category as Obama (bigger looser)...Obama is spending at 10X the rate than Bush ever spent...
China is tired of lending us money! Reducing deficits is the ONLY way to stop this train wreck! Good God people wake up and stop the mamby pamby do gooder BS!
Posted by annon, a resident of the Another Pleasanton neighborhood neighborhood, on Nov 12, 2009 at 10:45 am
"Emerson Electric laying off 20,000 since 2008 but expanding overseas. The CEO states that the Obama Admin is destroying manufacturing in America."
Wow,
National outsourcing and more specifically California's outsourcing was cased by Obama in the last eight months!
Genius!
"Democrats...how do you defend the Obama Admin policies that result in this?"
Democrats have NO NEED to defend statements of this nature!
Get some US Economic educations. Also, have you ever heard of Corporate greed or CAPITALISM? Labor is CHEAP overseas, regulations are minimal and that alone created an invitation for US companies to do business overseas are were have increasingly seem over the last FIFTEEN YEARS!
Posted by Bill, a resident of the Castlewood neighborhood, on Nov 12, 2009 at 10:52 am
Annon-
Yes its taken a long time for us to get into the aweful position we are in....and blame can be laid at the feet of both parties!
So rather than looking backwards....lets look forward.
Raising Taxes, increasing the size of Government, the House Healthcare Bill, Cap and Trade are ALL the worst thing we could do at a time like this. Those are FACTS indisputable FACTS.
Posted by Liz, a resident of the Birdland neighborhood, on Nov 12, 2009 at 3:30 pm
Hey PHil, business' were booming for the most part for moat of those 8 years. And Parent, didn't you want change?
Other than Wall Street which got OUR H1N1 allotments and our stimulus, United Auto Workers, Obama has given our stimulus $$ to city & county public unions...you know, the jobs that contribute ZERO to the US GDP...'cuz they don't PRODUCE anything. FOR real contributing jobs there should be some 'stimulus' to small to medium (100-200) employees of companies that actually make and SELL something...and it could be taxed too !. Their has been zero stimulus for main street. Any good has been created by INDIVIDUAL AMERICANS BY THEMSLEVES...as always. That's fine, but don't tell us it was about Obamabucks,'cuz it isn't. Every day he adds more ( &mostly not needed) debt. He tells us those public union folk will buy coffee & eat out & that helps! THAT won't cut it !!
Posted by Dee, a resident of the Foothill Place neighborhood, on Nov 12, 2009 at 3:34 pm
There's only so many inner-city unemployables that can be trained to go inside homes and do 'weather-stripping' for them. It would be laughable IF it weren't SO TRAGIC !
Posted by Jill, a resident of the Downtown neighborhood, on Nov 12, 2009 at 8:26 pm
So annon, if it's all big bad business taking jobs overseas, then where have the stimulus $$ gone so far ? It hasn't helped any mainstreet unemployed or furloughed workers in the private sector... as far as I've heard.
Posted by Bob, a resident of another community, on Nov 14, 2009 at 8:24 am
I grew up in the shadows of Emerson world headquarters. Both of my parents had white collar jobs at Emerson for many decades.
The notion of Emerson now is going to grow it operations in China because of this administrations anti-business beliefs is a JOKE!
They have been shipping jobs to China and Mexico for the last 2 decades. What was the excuse then? The same as it is now. The bottom line. Nothing has changed except the spin.
In 2001 I bought the house that I live in from a quality manger at Emerson who was moving to China. Emerson must have had great insight to know Obama was going to be president.
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