Re: U.S. Labor Wins Back Jobs From Canada!
Author: SP5103
Date: 02-03-2012 - 12:58
I'm not sure we actually "won" jobs back from Canada. Canada does have a little differnt monetary situation than the US - I think their costs are higher but so are the wages. With EMD losing so much of the North American market share to GE, the export market has become more important. In this "world economy", EMD is having to compete with China and other countries with lower labor costs for export orders.
I have heard that EMD's Muncie, Indiana plant is up and running. Progress Rail has several shops big enough to assemble locomotives, created to support building their gen-set line that doesn't seem to have taken off. Progress Rail had also bought a large rail services firm in Brazil. Look for much of the production to shift to either Brazil or Mexico. Of course Mexico could supply production for the US, and both Mexico and Brazil could build exports.
THe US seems to be busy exporting its technology (though fading fast), raw materials and agricultural products. I heard something the other day about how many US jobs are in the service industry. Evidently we are just going to sell hamburgers to each other, or work for the government.
Something perhaps more disturbing is that Caterpillar is steering marine customers away from upgrading their EMDs to new Caterpillar models instead. I am also hearing that many marine EMD engines are being replaced by MTU diesels. The MTU diesels (sold by Detroit Diesel here) is what was in the MPI Pacific Harbor Line rebuilds that are already going to Progress for Cats due to engine issues.