Newell Rubermaid Reorganization - Again
Today's Wall Street Journal is full of information about the latest attempt at reorganization at Newell Rubermaid. In essence, the plan calls for the elimination of one-third of the companies 80 manufacturing facilities and the elimination of some 5,000 jobs. They are going to concentrate on speeding up the process of bringing new products to market.
This sounds to me like another way to spin producing more products off shore. As we see more and more production moving off shore, I hope our government officials wake up to the fact that it isn't lower labor rates that is causing this shift, but rather the incredible overhead burdens that are imposed on domestic manufacturers that don't exist in other parts of the world. If we want to maintain our manufacturing base, it is going to be critical that we find a way to make it less expensive for companies to manufacture in this country.
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