Lennox to shift some production to Mexico

Lennox International Inc., has announced part of its production unit in Marshalltown will be shifting to Mexico, but expects no lasting effects on staffing levels, it was announced Friday. via Times-Republican

[Lennox employee]

"Marshalltown will be shifting to Mexico, but expects no lasting effects on staffing levels, it was announced Friday."
That is a bold two-face lie from Lennox. The Merit series a/c units moving to Mexico is staffed with over 350 people just in Mashalltown and unknown amount of labor force in Grenada, MS. Take one piece of advise about Lennox International, DON'T BELIEVE A WORD THEY SAY! Greed is their game! More money in their pockets, not the people of Saltillo nor the people in Marshalltown or Grenada.

[livefortoday]

there goes my job. i heard that the people in saltillo MX make about 60. cents an hour. i agree with you. talking about GREED.

[Lennox employee]

livefortoday- Do you work for Lennox International also? If so, where?
My Lennox employee name shows up here, as me being in Lafayette, IN. That is not correct.(the internet is funny) I do live in Marshalltown, IA.
The employees of the Marshalltown plant are taking this news very well for some reason. I am not however. The good quality reputation Lennox has, started here. It's been going down hill for several years due to the purchase parts we use (now being made in Mexico.) It really makes me mad the shareholders either don't know, or don't care. Moving the Merit series to Mexico is a big quality mistake. I can just say this, I would be screaming mad at Lennox, if I was shareholder.
Wake up America!!!

[Heatcraft employee]

I understand I have worked at heatcraft ( Bohn ) for 17 years and they are now telling us as of today that they are moving some of our work to mexico also that is air handler business. That is a bunch of bull We have mexicans that work at our plant and all they do is put out a bunch of junk that we the employees have to stop what we are doing to help them fix their screw up. Hey Stock Holders Wake up Its Coffee Time...... All I can say it our quality and heatcraft and Marshalltown stands out from the rest.

[Lennox employee]

You are so correct Heatcraft employee. How did Lennox/Heatcraft get there reputation? From you and me, that's how.
Just a little added note. The announcement about this 1st factory being built, has been followed up with an announenment of a 2nd factory under construction. I am counting the days til Lennox in Marshalltown closes completely.
Another 100 people in Oct. will be layed off....how much longer do I have?

[lennox employee]

i agree with all of you. today in fact i opened a new pallet of fan motors today. they were from mexico. they were the right parts but had a different scan sticker on it for the computer. The whole assembly line shut down for 3 hours before management figured out what it was. There goes the incentive pay for the day. SHAREHOLDERS take a tour of the marshalltown facility and take a real close look. Quantity is there game not quality!!!!

[Trev]

You have to be a little careful with that kind of thinking. A scan sticker is easy to fix.
Mexicans have just as much ability in terms of these kinds of issues than do Americans or Canadians.. or whoever.
I work at a manufacturing plant in Saltillo and when a PR&R happens everyone goes in to high mode to set up protocols to prevent future problems.
My personal opnion .. when that Lennox plant opens up.. the stockholders will be happy.

[Bob Burns]

Sorry about that mates. Guess you'll have to put down those wrenches and train up for a hightech job. Note to you in Mex. Let this be a lesson for you. If you demand more than you're worth, go on strike, they'll move the factory over here

[Trev]

China doesn't succeed in large goods... so it won't go do China.

I had an associate that worked at a small appliance manufacturer here in Mexico. and they closed the doors here and moved the plant to China for pennies on a unit. So on things like Toasters and Waffle Irons.. it's very close. On things like Cars, Fridges, assembled furniture, etc.. Mexico will win every time.

3 Chinese companies opening up auto plants here in Mexico over the next couple of years only further illustrates this point.

[r u kidding me]

Trev wrote:

China doesn't succeed in large goods... so it won't go do China.
I had an associate that worked at a small appliance manufacturer here in Mexico. and they closed the doors here and moved the plant to China for pennies on a unit. So on things like Toasters and Waffle Irons.. it's very close. On things like Cars, Fridges, assembled furniture, etc.. Mexico will win every time.
3 Chinese companies opening up auto plants here in Mexico over the next couple of years only further
illustrates this point.

Opening car plants is a logistical solution to the location in which they plan on selling their cars... America. Clearly You do not understand the Chinese work ethic if you did you would not make such bold statements... or maybe I forget only mexicans have the ability to make junk at the rate of a 35/65 output ratio.(35 working units for every 100 built) When charging 6 pennies on the dollar a 29% return is still a good investment. At least you understand and comprehend english, and thankfully have moved back to mexico.

[Trev]

Actually I'm a Canadian living in Mexico.. and yes.. I do understand quite a bit about China having done quite a bit of work with them with purchasing components, molds, etc. The company that built our molds also made plastic parts.. and alot of them. I'll note that they never had less than 3-4 people on each machine.. doing 100% inspection on all parts. It's great but only feasible in a country that pays less than 100 dollars a month in wages. At that kind of work they will win every time. But it's not going to last. China has inflation of well over 7-8% a year right now and the workers are starting to rebel against the wage rates. This is something the Chinese government is going to have to deal with relatively shortly. Additionally those people that are educated in a trade are becoming rare... and their salaries are escalating rapidly. To the point that most companies now are recruiting large numbers of people to move to China to work as engineers etc. These kinds of people are extremely expensive.

You're correct.. about logistics. But nothing else. You cannot ship containers of cheap cars from China and make money. It's simply not possible. In terms of quality... I won't comment. Its supplier specific. There is a ton of junk in both countries.

Not to worry though. The US$ is depreciating rapidly enough now that the jobs will eventually start moving back. A 50% depreciation in 6 years can do that. This is a trend the next president will not be able to reverse.

[Seen It B4]

To all the workers at Lennox from an employee at one of your suppliers who has seen numerous lines moved to Mexico, I sincerely sympathize with your plight and hope for the best but fear the worst.

That's the current nation-wide approach to improving corporate profitability. Pretty short-sighted in reality. What price can you put of product Quality? The answer is none, it is priceless.

I can assure Lennox management that I certainly won't be purchasing any gas product manufactured out of country.

[Lennos employee]

Trev wrote:

You have to be a little careful with that kind of thinking. A scan sticker is easy to fix.
Mexicans have just as much ability in terms of these kinds of issues than do Americans or Canadians.. or whoever.
I work at a manufacturing plant in Saltillo and when a PR&R happens everyone goes in to high mode to set up protocols to prevent future problems.
My personal opnion .. when that Lennox plant opens up.. the stockholders will be happy.

I would not have a problem with work going to a country, if the standard of living will be improved. However, that is not the case. If it were, I would not be fighting for my job at both sides of the boarder.
The stock holders are just as greedy as the Company. If "they" only knew how much money has been waisted on their lack of management skills, all the CEO's would be fired!

[Lennox Employee]

The Lennox plant in Marshalltown will not close if the people stay positive and focused. This is just another bump in the road for them.

The Lennox plant in Mexico has been mismanaged and continues to be mismanaged. If things are not corrected, and soon, the plant in Mexico will be a non-issue.

[marshalltown worker]

i have 2 year old lil girl and a nother on the way, a new house i just got, my wife just lost her job today and i will be laid off as of aug 18. it is so hard to beleave lennox when in the meeting to in form us of the changes the plant gm says to us "we care about america and the american worker" ya and thats ya you send mine and so meny others jobs south to workers that have never brazed "leaky lennox" agin and it really adds to it 600 i have paid in the last few years to the uaw and the one time my job is in trouble thay cant do anything for me.