My company is affected by this sudden cancellation. Here’s something to consider: The plants in Mexico have been planned out already and equipment bids from American companies accepted. Some of the that equipment is already in the process of being built, and Ford is for us usually a dependable, if very demanding, customer. In general, companies are happy to get such Ford work even though it means turning orders from other companies.
The overhead cranes that my company is now making for Ford Mexico are well underway, specially designed and engineered for the new plants. The machining and assembly work was supposed to occupy us for many months, taking up a great deal of production capacity and floor space. Now what? Will Ford pay adequately for work so far done? Will they compensate us for loss of work we turned down to accommodate Ford’s delivery date demands. Usually that isn’t in a contract to the extent that small companies recover fully.
Several American companies that build equipment requiring long-range planning will be hurt by what is essentially a dog and pony show. Nothing here in this publicity stunt is as it seems on the surface. Inevitably, jobs gained in one place will be lost in other places, usually small places that can’t turn their production plans on a dime. That’s often the way these things work, especially with big companies as customers. It’s a gamble, and big business runs the casino.
That’s one person’s personal perspective on this affair.
April 12, 2017
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September 22, 2017