Snap-on to close two tool factories, cutting 560 jobs

The Macon Telegraph ^ | Tuesday, July 22, 2003 | The Associated Press

[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.

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On the Net:

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

[helper]

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.

[Rebelbase]

"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.

[raybbr]

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?

[CalvaryJohn]

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.

[FreeKnight]

Snap-On is probably best known for

their calendars

[Willie Green]

their calendars

Ridgid Tool has 'em beat in that department.

[helper]

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.

[SnapOnGirl]

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

[toolkid]

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.

[mrmargaritaville]

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

[ErnBatavia]

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

I was scrolling, and surprised it took thirty replies!

[Willie Green]

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.