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Snap-on to close two tool factories, cutting 560 jobs
The Macon Telegraph ^ | Tuesday, July 22, 2003 | The Associated Press

Posted on 07/22/2003 1:48:32 PM PDT by Willie Green

For education and discussion only. Not for commercial use.

MILWAUKEE - Snap-on Inc. will eliminate 560 jobs by early next year when it closes tool factories in Kenosha and Mount Carmel, Ill., the company said.

The Kenosha-based company will close two of its four plants that make hand tools and power tools, and work done at those plants will shift to remaining plants in Milwaukee and Johnson City, Tenn., spokesman Richard Secor said.

"This was a very difficult decision, given that these facilities have served Snap-on well for many years," said Jeff Eggert, vice president of Snap-on Tools Operations.

In Kenosha, 290 jobs will be cut while 270 jobs will be lost in Mount Carmel.

Snap-on cited "customer and competitive conditions" in making its announcement Monday.

The company will begin negotiating with unions representing the workers at both plants, he said.

Snap-on assured workers Monday that they will continue to have jobs until at least Oct. 1, when the company will begin to phase out production at the factories.

The cuts are in addition to 100 jobs already slashed worldwide, including 20 at its Kenosha headquarters and 10 at the Milwaukee hand-tool factory.

Snap-on has cut 1,200 jobs worldwide since early 2001 and employs 12,800 today, including 800 at its headquarters and another 200 in Milwaukee, Secor said.

Snap-on is scheduled to report its second-quarter earnings Wednesday. Snap-on's stock price, which traded in the $30 to $32 range in June before the company warned of slower sales, closed Monday at $28.05.

__

On the Net:

Snap-on: http://www.snapon.com/


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; Government; US: Illinois; US: Wisconsin
KEYWORDS: despair; doom; dustbowl; eeyore; globalism; grapesofwrath; infrastructure; joebtfsplk; layoffs; manufacturing; thebusheconomy; tools

1 posted on 07/22/2003 1:48:32 PM PDT by Willie Green
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To: Willie Green
and work done at those plants will shift to remaining plants in Milwaukee and Johnson City, Tenn

Where's the Mexico / China / India connection in this? With automakers outsourcing more work to India, I would expect SnapOn to open a facility near those plants.
2 posted on 07/22/2003 1:58:30 PM PDT by lelio
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To: lelio
The continued decline of American manufacturing capacity and ability. A couple of generations of this kind of decline will leave us a Nation of service idiots.
3 posted on 07/22/2003 2:00:19 PM PDT by Rebelbase
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To: Rebelbase
When a car has a 100,000 mile warranty it may be because it does not need as many repairs. Snap on is sold mostly to dealer mechanics and major shops not at Sears. Does it not stand to reason that they may not make as many tools because of the chnage in the quality of the auto products?
4 posted on 07/22/2003 2:04:44 PM PDT by q_an_a
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To: lelio
Snap-On is probably best known for selling their high quality products directly to the skilled workforce who use them. The fleet of Snap-On "Tool Trucks" visit factories on a regular basis so workers may conveniently make their purchases.
I doubt that this marketing approach would work in either Mexico, China or India since it is unlikely that manufactureres pay their workers enough to be able to purchase their own high quality tools.
5 posted on 07/22/2003 2:12:06 PM PDT by Willie Green (Go Pat Go!!!)
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To: Willie Green
The job-loss recovery continues...
6 posted on 07/22/2003 2:14:16 PM PDT by Walkin Man
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To: Willie Green
Got me a set of KOBALT wrenches (Made by Snap-on). They are fantastic.

I trust my knuckles to only American made wrenches and socket sets.
7 posted on 07/22/2003 2:15:38 PM PDT by ColdSteelTalon
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To: Rebelbase
How is it that as we move towards a "service economy", the "service guys" need less tools and equipment?
8 posted on 07/22/2003 2:18:20 PM PDT by m18436572
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To: m18436572
Or are they guving up on American labor and opening up shop in China? That's where the market is anyway.
9 posted on 07/22/2003 2:19:46 PM PDT by m18436572
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To: Willie Green
Can't forget the Marketing angle here. The company lost it's best customers: Shrillary and the women of Bubba's cabinet.
10 posted on 07/22/2003 2:22:16 PM PDT by You Dirty Rats (2004 Race: Dubya vs. BYE)
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To: ColdSteelTalon
KOBALT wrenches (Made by Snap-on)
Sorry to burst your bubble, but unless you have an old set, Snap-On no longer makes Kobalt's (Lowes) tools. Too bad, 'cause I have some of their old sockets and the sizes are deep stamped and easy to read. New ones are very faint and SUCK!
11 posted on 07/22/2003 2:22:17 PM PDT by Xthe17th (FREE THE STATES. Repeal the 17th amendment!)
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To: Willie Green
The Milwaukee plant on the northwest side is pretty new...
12 posted on 07/22/2003 2:22:49 PM PDT by joesnuffy (Moderate Islam Is For Dilettantes)
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To: Willie Green
The company will begin negotiating with unions representing the workers at both plants..

Anyone want to bet the production is moving to non-union plants?

13 posted on 07/22/2003 2:26:43 PM PDT by DoctorHydrocal
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To: m18436572
Or are they guving up on American labor and opening up shop in China? That's where the market is anyway.

No it isn't. As I explained to lelio, these are High Quality tools. Even if the cost is decreased by utilizing slave labor to make them, the offshore workforce just doesn't earn enough money to be able to purchase the products they make themselves. The globalist "cheap labor" theory of production violates the wisdom of Henry Ford:

There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.

-- Henry Ford

"The high wage begins down in the shop. If it is not created there it cannot get into pay envelopes. There will never be a system invented which will do away with the necessity for work."

-- Henry Ford

Unless workers earn enough to become consumers, the market will not develop. And as long as globalists profit by keeping wages suppressed, those markets will continue to be undeveloped.

14 posted on 07/22/2003 2:34:46 PM PDT by Willie Green (Go Pat Go!!!)
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To: Willie Green
I doubt that this marketing approach would work in either Mexico, China or India since it is unlikely that manufactureres pay their workers enough to be able to purchase their own high quality tools.

The last set of metric wrenches I bought from Snap-On were about $230. You could hit up the Mac Tools guy for about 20% less, IIRC. I don’t even want to guess what I paid them for a timing light I bought once.

Their main attraction was that they’d put you on an EZ-payment plan so you could pay a certain amount each week. The Mac guy didn’t do that - he wanted the cash up front.

They are very nice tools, but are almost prohibitively expensive. They also disappear if you don’t keep them locked up. Mac tools (or Craftsman, for that matter) are good products that are priced closer to reasonable, IMO, but then they are not things I use every day anymore.

15 posted on 07/22/2003 2:35:55 PM PDT by Who dat?
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To: Willie Green
SnapOn is selling a lot of non-SnapOn tools these days. You can buy the same exact Gearwrench off the SnapOn truck for three times the cost that you can buy it for at Sears. Both are identical tools and both have "Gearwrench" stamped on the sides.

Many SnapOn tools aren't even made by SnapOn anymore. Most of their air tools are made by Ingersoll Rand. Ingersoll, however, makes excellent air tools.

I've grown to really appreciate Mac tools. Their 72-teeth ratchets are the finest I've ever used.

16 posted on 07/22/2003 2:40:39 PM PDT by Drew68
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To: Willie Green
Distressing. Now what is Janet Reno going to use when playing "Hide the Salami" with Hellery?
17 posted on 07/22/2003 2:43:53 PM PDT by quark
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To: DoctorHydrocal
Anyone want to bet the production is moving to non-union plants?

I doubt that is a significant factor in this instance.
Unless you're talking about the UAW and Big Three Automotive plants, organized labor is no longer the major manufacturing boogeyman that bashers try to emphasized. Nationwide, only 16~17% of the manufacturing workforce is represented by organized labor. The major shift has been toward representation of government workers and teachers where upwards of 40+% of the workforce is unionized.

It is likely that other factors determined which plants absorbed the production: which facilities already had the more modern equipment or room to absorb transfer of equipment, local tax/utility rates, local EPA regulations, etc. etc.

18 posted on 07/22/2003 2:53:56 PM PDT by Willie Green (Go Pat Go!!!)
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To: Willie Green
While buying a tool once from Sears, my stepbrother who is a mechanic stated that craftsman and snap-on have the same lifetime warrenty, but that snap-on tools didn't ever break.
19 posted on 07/22/2003 3:06:17 PM PDT by Joe Boucher
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To: Xthe17th
Sorry to burst your bubble, but unless you have an old set, Snap-On no longer makes Kobalt's (Lowes) tools. Too bad, 'cause I have some of their old sockets and the sizes are deep stamped and easy to read. New ones are very faint and SUCK!

I agree. New Kobalt tools are not as well made as the ones from a few years ago.

20 posted on 07/22/2003 3:07:20 PM PDT by cruiserman
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To: Rebelbase
I have to take offense at "Nation of service idiots." Being
in a semi Hi Tech service business my self, I am busy as hell, making great money, and looking for people that have some true mechanical skills. I am not crying about outsourcing or some Indian eating my lunch.

In fact, an old friend stopped in today to tell me he is back in the electro/mechanical business. A few years ago he sold out to some big Co. They made a few payments then stiffed him, took all his equipment and left town. He decided to just retire.

Well his old customers kept after him to go back in business. Three months ago he decided to start back up. Got his old building back, same phone number, even one of his old employees, (had to pay him to move 100 miles back)
Can't find people that have any electro/mechanical ability, and he will start them at a great rate. He is billing at about $100.00ph and today he was backed up 73 calls.

We have too many young people out there that spent too much time with joy sticks, video games, etc, and can't even change a tire.
21 posted on 07/22/2003 3:18:37 PM PDT by helper
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To: m18436572
"We have too many young people out there that spent too much time with joy sticks, video games, etc, and can't even change a tire."

That is where I'm leaning when I say that without basic manufacturing knowledge, we will become a nation of service idiots.

We are losing the knowledge and skill to perform certain functions, and the nations that were once inferior and laughed at for poor quality, are now rapidly approaching our manufacturing ability. Japan was a joke when I was a kid and it took them 30-40 years to be on par with our electronics industry and for price/quality they have surpassed us.

China is now the next Japan in the World market. Where will they be 30 years from now?.. and where will we be?

It only stand to reason that if we continue to decline our competition will continue to improve.

What will be left is a nation of people where the majority of people have only service oriented skills and that can't help us in the international arena.
22 posted on 07/22/2003 3:44:07 PM PDT by Rebelbase
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To: helper
I have been doing industrial maintenance for over 20 years. We have hired a couple of guys, both from the service, who couldn't troubleshoot for s&!t. They were never taught logical skills in the service. Good workers though. Very dedicated.

This is a trade that is dwindling due to lack of companies willing to spend money on training and the loss of plants around the country.

Where is this guy located? Is he hiring?

23 posted on 07/22/2003 4:57:27 PM PDT by raybbr
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To: raybbr
Overpriced tools. I proudly use Crafstman tools on my Harley-Davidson. Yeah, they break, on occasion, but then I don't have to wait for the truck to show up before I can replace them.
24 posted on 07/22/2003 6:48:06 PM PDT by CalvaryJohn (What is keeping that damned asteroid?)
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To: Willie Green
Snap-On is probably best known for

their calendars

25 posted on 07/22/2003 7:58:46 PM PDT by FreeKnight (Strength and Honor)
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To: FreeKnight
their calendars

Ridgid Tool has 'em beat in that department.

26 posted on 07/22/2003 8:30:03 PM PDT by Willie Green (Go Pat Go!!!)
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To: raybbr
He is located in the Northern VA area, just a few miles from
DC. I will check with him about hiring, when he is caught up with his 73 call backup.

I will tell you that your skill is in great demand. A few weeks ago the business located next to me needed the brakes
repaired on their forklift. The repair Co was located in Winchester, about 50 miles away. I also ran into a guy from Front Royal also about 50 miles away who has a small engine repair business. He told me he was up to he bippy in work. He also said they used to send a truck two days a week to the NVA area to pickup work. No more, the customers are bringing them in themselves to get to the head of the line, and paying a extra charge for expedited service.

While I am not in that business directly, but we use many of the same skills in our business. I am thinking of starting up a second business in this line. I am going to talk to my friend about this, he is 67 and I am sure would welcome the help. I can make the same money, and the market is tremendous in my area.
27 posted on 07/23/2003 6:24:44 AM PDT by helper
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You know Mechanics all bitch about the price of Professional quality tools but what do you see them using on the cars they work on - Snap On , Matco (if you count this as a quality tool) and Mac. Mechanics make a living with their tools, so yah they are going to spend a lot on them. Craftsman is junk - I was in Sears once messing around with a craftsman ratchet and it fell apart in my hands!! The ball fell out and some other parts went flying. Wow, and you proudly use your craftsman tools, you must not use them much.
Another comment about SnapOn selling other brands. Well Blue point is for all you whiners who won't put out your pocket change for the real deal, It is Snap On's way to provide quality tools at every price. They are good tools, don't get me wrong. They are built to the same high standards as all Snap On tools. And by the way if you are "proud to be an American" as everyone says these days but doesn't back up - All Snap On tools that are stamped with the Snap On insignia are built in the US. I challenge Matco and Mac to prove that their tools are built in the US (trust me they aren't).
One thing that I don't think people consider is the work and scientific study that goes into creating innovative tools. You can't believe the engineering that goes into Snap On tools to help better serve customers. It is expensive to do this and it is reflected in the price of the tools!
Another thing, Snap On has a new CEO and he is giving the company a complete facelift. There was a lot of unnecessary cluture in the company and all the loose ends are being brought together by closing some Snap On locations, and yet expanding, other Snap On headquarters.
There is a difference - SnapOnGirl


28 posted on 05/26/2005 10:12:08 AM PDT by SnapOnGirl
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To: SnapOnGirl
FYI Matco Hand tools are all made in the USA or Germany the same as Snap-On. The German supplier supplies tools to both Matco and Snap-on. Matco Tool boxes are the finest in the world and they are hand made in New York state.In addition I heard a rumor that snap-on will no longer warranty old tools without a receipt and that some of there new tools will not carry a warranty. The big thing is that Matco Tools are usually 10 to 15% less that snap-on with great customer support and service.
29 posted on 10/06/2005 6:41:35 PM PDT by toolkid
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To: Willie Green

Are they going to continue to sponsor Ellen Degenaris' TV show?


30 posted on 10/06/2005 6:44:39 PM PDT by mrmargaritaville
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To: mrmargaritaville
Are they going to continue to sponsor Ellen Degenaris' TV show?

I was scrolling, and surprised it took thirty replies!

31 posted on 10/06/2005 6:50:49 PM PDT by ErnBatavia (Like a midget at a urinal - stay on your toes...)
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To: ErnBatavia; mrmargaritaville
I was scrolling, and surprised it took thirty replies!

Well Ern, perhaps you and mrmargaritaville are the only ones who watch the Ellen Degenaris' TV show.

32 posted on 10/07/2005 7:12:01 AM PDT by Willie Green (Go Pat Go!!!)
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