The latest example of this is Dell's
to close a desktop manufacturing facility in Winston-Salem, NC.
Just over three years ago, Dell
lavished nothing but praise on its newest 750,000 square-foot
manufacturing center and bragged about how it had employed over 1,000
people. "There's nothing more important than exceeding our
customers' expectations every time they interact with Dell. Our
growth and investment in North Carolina, combined with the more than
2,000 sales and support people we've hired in the U.S. over the past
two years, signifies our commitment to giving customers the highest
quality products and services for the best value in the industry,"
said Dell CEO Michael Dell in May 2006.
North Carolina's Governor at the time,
Mike Easley, also praised Dell's contribution to the state. "The
employment and production milestones Dell has achieved in these first
eight months prove that the investments North Carolina made to bring
this facility to our state are paying off."
Today, however, there isn't as much
back slapping going around. "This is a difficult decision,
especially for our North Carolina colleagues, but a necessary one for
Dell customers and our company," said Dell's Frank Miller. “The
efforts of our team members there have been significant and we’re
committed to helping them through their transition. Of course, we’ll
continue to honor all agreements with North Carolina, Forsyth County
As a result of the closure, 600
employees will be let go next month and an additional 305 will be
released by the time the plant is fully close in January 2010. Dell
also notes that it will "continue to fully comply with the terms
of incentive agreements with the citizens of North Carolina,"
likely due to the tax incentives the company received by locating in
Although it is closing the
Winston-Salem facility, Dell still maintains U.S.-based manufacturing
and fulfillment centers in Miami, FL., Nashville, TN, and Austin, TX.
quote: Tomorrow's headline will read "In unrelated news, Dell plans on opening a new plant in China."
quote: you don't know how true that is. the state of NC, Forsyth County, and the town of Winston-Salem put up almost $300 MILLION in tax incentives to get Dell to build the plant there with the promise of providing 1,200 jobs
quote: I can't blame Dell for doing what it takes to stay afloat during this economy.
quote: Obviously Dell has decided the closure of the plant is more valuable than the loss of future production capability. If Dell later chooses to outsource to China, that is their right and it is NOT immoral do to so.
quote: My main issue with your entire argument is this idea that DELL is making enough profit.
quote: I'm sorry mr business degree, but whether or not something is immoral has absolutely nothing to do with whether it is a good business decision.
quote: If Dell later chooses to outsource to China, that is their right and it is NOT immoral do to so. It is business.
quote: As a previous poster stated, the lowering of the corporate tax rate would directly give incentives for companies to continue manufacturing in the US
quote: They just aren't making as much money as they were back in 2006, but who really is these days?
quote: Although it is closing the Winston-Salem facility, Dell still maintains U.S.-based manufacturing and fulfillment centers in Miami, FL., Nashville, TN, and Austin, TX.