“Foxconn Technology Group on Wednesday pledged to invest $10 billion to build a display panel plant in Wisconsin that could employ up to 13,000 workers and draw up to $3 billion in subsidies from state taxpayers — a deal that could ripple through the economy and 2018 elections,” Patrick Marley and Jason Stein report for The Milwaukee Journal Sentinel. “‘This is a great day for American workers and manufacturers and everyone who believes in the concept and the label ‘Made in the USA,” said an ebullient President Donald Trump at the White House announcement.”
“Trump seized on the announcement as a win in a key swing state, crowing that the deal wouldn’t have been done ‘if I didn’t get elected.’ The agreement represents an opportunity as well as a risk for Wisconsin — state lawmakers must now consider a subsidy package nearly 50 times bigger than the state’s previous record,” Marley and Stein report. “The factory project would involve a virtual village, with housing, stores and service businesses spread over at least 1,000 acres, according to interviews. That acreage, a 1.5 square-mile area the size of Shorewood, could be assembled from parcels that initially aren’t contiguous, the source said.”
“At 20 million square feet, the factory would be three times the size of the Pentagon, making it one of the largest manufacturing campuses in the nation. It would initially employ 3,000 workers making an average of $53,900 a year plus benefits and could eventually boast more than four times that,” Marley and Stein report. “‘America does not have a single LCD plant to produce a complicated system. We are going to change that,’ Foxconn Chairman Terry Gou said.”
“The deal comes as Trump seeks to fulfill a promise to bring manufacturing jobs that have been lost in recent decades back to the United States. U.S. House Speaker Paul Ryan, whose district in southeastern Wisconsin would be home to the facility, praised Trump and Walker for working to make it happen, calling the plant a ‘game changer,'” Marley and Stein report. “The Foxconn plant would make liquid crystal display panels used in computer screens, televisions and the dashboards of cars. Walker’s office said the deal could result in up to 22,000 jobs that would be indirectly created by suppliers and businesses looking to locate near Foxconn and serve the company and its workers. The construction alone could lead to 10,000 jobs over each of the next four years.”
Read more in the full article here.
MacDailyNews Take: Hey, make a bunch of those new, forthcoming Apple pro displays there, too!
The announcement at the White House on Wednesday evening:
SEE ALSO:
President Trump to announce Apple-supplier Foxconn manufacturing plant in Wisconsin today at 5pm EDT – July 26, 2017
Apple supplier Foxconn nearing decision to build plant in Wisconsin to produce display panels – July 25, 2017
Made in America iPhones, after all? Apple supplier Foxconn considering iPhone plant in Wisconsin – June 15, 2017
China Premier Li visits Apple supplier Foxconn after CEO’s meeting with President Trump – May 10, 2017
Apple’s top manufacturing partner to meet with U.S. President Trump today – April 27, 2017
Apple could help Westinghouse in completing new nuclear plants – April 17, 2017
Apple may bid for big stake in Toshiba – April 17, 2017
Apple supplier Sharp may begin building $7 billion U.S. plant in within months as Japan PM meets President Trump – February 8, 2017
Foxconn-Sharp considering LCD plant in USA, plans in response to President-elect Trump’s ‘Make in America’ call – January 13, 2017
With President Trump soon to take office, Apple looks to boost its ‘Made in America’ credentials – January 10, 2017
Make America Insanely Great Again: Apple seeks to expand Made in USA manufacturing – January 9, 2017
Apple invests $1 billion in SoftBank’s massive tech fund; may help company get in President Trump’s good graces – January 4, 2017
Apple in talks to invest $1 billion in SoftBank tech fund – December 13, 2016
Softbank to invest $50 billion in the U.S., create 50,000 new tech jobs after meeting with President-elect Trump – and Apple supplier Foxconn is in on the deal – December 6, 2016
President-elect Trump invites tech leaders to roundtable in Manhattan next week – December 6, 2016
President-elect Trump tells Apple CEO Tim Cook that he’d like to see Apple make products in the U.S. – November 23, 2016
President-elect Trump says Apple CEO Tim Cook called him after election victory – November 22, 2016
Apple could make iPhones in the U.S.A. under President Trump, sources say – November 17, 2016
Japan’s Softbank just became one of Apple’s most important suppliers – July 18, 2016
It will be 30 jobs, just like the Carrier lie!
So you’re stating that:
1. We shouldn’t even try to re-establish manufacturing jobs in the U.S. at all.
2. We should be happy in the decline of the middle class in U.S., which is largely the result of huge declines in domestic production over the past several decades.
3. We should simply “Tax the rich, feed the poor / ’til there are no rich no more” in order to address the economic issues the U.S. currently faces.
I’m sure that sounds like the makings of a solid economic plan in your little mind.
no flint, you vomited (stated) all that stuff.
Foxconn is getting $3B in govt subsidies to create 13k jobs. It will cost taxpayers $230k/job that pays $53k/yr.
Paid for in year five. The rest is gravy. Plus income taxes, sales taxes, local business growth (restaurants, etc.) which also pay taxes, etc. Sounds like a smart deal to anyone with a brain.
Then the $3B in tax breaks amount to paying the salaries of every Foxconn employee in this factory for over 19 years at $52K per year. That’s a sweet deal if you can get it.
This is simply political grandstanding for appearances sake. The rich benefit and the regular folks get screwed, as usual. This is just one more variant on failed trickle-down economics. The only thing that trickles down to most of us are the scraps and the long term burden.
We fought to get rid of the tyranny of nobility and royalty in this country. But it returned in the form of the ultra-rich elite. They control the money. They control the politicians.
Please define local folks getting screwed. How exactly?
It won’t be 13,000 (Foxcon claims 3,000 initially), and it will continue to decrease as automation takes over more of the manufacturing process. Remember, this is not an assembly factory, which currently requires the most hands on work. This is a TV screen factory, which is great that we’re producing in the U.S. but is such a factory that will create the fewest amount of jobs per value output. Also note that we gave a Chinese company $$Billions of dollars in tax incentives to build a factory here; U.S. is not allowed to build a U.S. owned factory in China. Are we really getting a good deal or is this just a bunch of Trump hot air layered over business as normal?
My primary concern has nothing to do with Trump. I simply detest the use of tax incentives (bribes) to lure businesses into an area. Companies take advantage of under-informed and ill-advised political bodies at the local and state levels to avoid taxes for years or decades using inflated estimates of jobs and economic benefits. In many cases, the job creation and economic benefits fall far short of the promises. Many of the touted jobs are temporary construction jobs – the number of long term jobs is always much, much lower. But the bigger number is advertised.
What are my objections?
First, the big tax breaks go to large companies. What about the medium and small companies that create most of the jobs in this country? What about the companies that have been in the area for decades supporting the community with jobs and charitable donations? Why should special tax rules be provided for a new company entering an area? These breaks are effectively tax burdens on the citizens and companies of the locality or state. The new business places new requirements on the locality or state for infrastructure, etc., but does not help to pay for those improvements for years, sometimes decades (if the company lasts that long).
Second, these deals often fail to live up to promises. The companies generally still reap the majority of the tax breaks and the locality or state is left holding the empty bag.
Third, this is government inserting itself into the free market. Politicians buy votes and publicity with taxpayer money, but the taxpayer often gets the shaft. You would think that the GOP, the self-proclaimed champion of the free market, would be against these deals. After all, the government is engaging in picking winners and losers in a capitalist system. But political hypocrisy and incompetence rules, as usual.
Finally, as I have stated before, the resurgence of modern manufacturing in the U.S. will focus on highly automated factories assembling high value-added electronic devices like the iPhone. These factories will not generate many long term jobs, and those jobs will tend to be high-tech, not blue collar for the most part. In other words, the new factories will not replace the bulk manufacturing of commodity goods lost to China and other low labor cost regions of the world.
We, the taxpayers and citizens, are allowing ourselves to be used and abused for the benefit of the politicians and the wealthy (and wealthy politicians). A much better policy would be to reform business tax policy in general to provide an attractive and stable environment for business investment and expansion. These massive ad hoc giveaways are crap.
You make a ton of excellent points. But unfortunately offer little in the way of solutions except to reform business tax laws to that I agree.
Like everything else state law varies widely. One state has the greatest business tax laws in the nation and the neighbor state has the worst. What to do?
Although they get sweet deals to avoid local property tax they are still paying taxes on goods from suppliers bought, power, goods sold, employee payroll taxes and others.
The additional employees pay taxes and need a place to live paying all sorts of additional taxes and fees. Not an accountant so I can’t call it a wash.
Your point about the mom and pop local businesses thriving for generations without breaks is valid. Why should they and the local citizens foot the bill? Definitely not a fair game,big money talks. But what is? …
Lots of robots. The swell of construction jobs will dissipate once it’s up and running (that’s where that thousands number comes from) , and you’ll maybe see 6-700 full time positions.
It would be very good for everyone (and especially Trump) if this facility and these jobs indeed materialise.
The only little problem I have with this announcement is Foxconn. Terri Gou has made similar spectacular announcement in the past, later to quietly back out of them. Let’s see if he will follow through on this one.
TRUMP-PENCE 2020 – in a landslide!
That is, if is not impeached before then. Watching this administration is like watching a slow train wreck. Senate Republicans are really pissed over Trumps tweaks about Jeff Sessions. Undercutting your strongest supporters is extraordinarily unprofessional. And now we have a three ring circus between Anthony Scaramucci, Reince Priebus, and Steve Bannon. This is not going to end well.
You’re funny. Let me know when regurgitating MSNBC and CNN hacks gets old for you (if ever) and we’ll have a serious discussion. Until then, tschüss!
Skip the politics and get back to reality. The reality is no investment and no patting your self on the back unless jobs are created:
http://www.jsonline.com/story/news/politics/2017/07/27/foxconn-wont-get-3-billion-unless-creates-13-000-wisconsin-jobs-gov-scott-walker-says/516073001/
Pretty smart if you ask me.
I was thinking an image more like this:
I am optimistic, but also realistic. If Foxconn does what they say they will do, this is fantastic. But Foxconn has a history of talking big, and not delivering.
One very interesting side development is that Foxconn execs are apparently talking to a UW Madison cancer research center about making a donation. To date, the state has invested more heavily in life science research compared to engineering so they are well positioned in cancer research. It may be time to increase investments in engineering (i.e., UW Milwaukee who has a respectable program) to leverage the Foxconn investment.
On Wisconsin!
Looking forward to a 32″ 8K Apple Display
Re John
Not if it is a Teabagger Edition from Snot Walker’s Wisconsin.
Dude, what is it with your repeat meme of guilt by association degradation of Republicans? You worked for Reagan, right? More like, yeah right.
This is a positive development. Your snarky partisan sniping means NOTHING …
So Cook has coasted on Steve Jobs coattails for years now, but Trump has singlehandedly recreated the US economy in months? No, it’s just the thinking of idiots.
MAKE AMERICA A CARTOON AGAIN!
They have trouble understanding complex concepts.
I guess for you even simple things come across as complex.
sure.. whatever…
Give it a brake … take good news as good news..
stop acting like little children .
Hmm, Koch Walker and Rand Ryan are both up for election next year. Anyone want to bet that not a shovel full of dirt is ever turned over to build this facility? This is all to give both of them a talking point with the uninformed, unwashed in Wisconsin.
I suggest those who like to trash Trump again to Read the following thread… and observe the lack of rationality by the dogmatized .
PS.. i reiterate ..im not partisan… …. but that does not mean i am blind to irrational behavior and embarrassing close mindedness.
Given some of the truly shocking comments in the above thread… and the reaction/support of a lot of the dogmatized readers to these lunacies … i have no choice but to fear for the future of US in this ever more competitive world .
This is good news folks.. jobs are good… right ? !
Unless you are the type who loves freeloading..
So these jobs are paying more the $53,000/year + benefits? I find that hard to believe that’s what the workers are getting the same in China or any Foxconn plants. So does that mean visas for all the immigrant workers to fill these jobs? Isn’t there a limit on certain visas…
For the sake of this country, I hope this comes to be, but Foxconn has a long history of these types of promises all over the world and little usually comes of it. Just ask the people in Harrisburg, PA who were promised a Foxconn facility 4 years ago and there are no signs it will ever happen.
Who was president four years ago?
can’t wait to see the backlash when american fatsos realize what a real days work in a robot controlled television factory is really like.
welcome to the third world you turds.
I heard a report from someone, that heard on the radio in a elevator that Russia is going to invest 10 billion into the US which will create zero jobs. This is a serious allegations and needs to be investigated.