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Airbus Plant Lands in Sweet Home, Alabama

Can’t we just enjoy some good news?

Lou Washington
Wed, 10/21/2015 - 12:23
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I came across a couple of interesting articles related to the Airbus plant that recently opened in Mobile, Alabama. The first, by Justin Fox, is found in BloombergView, and the second was written by Jon Talton from The Seattle Times. Both pieces sought to explain why Airbus would build an assembly plant in the U.S. state of Alabama.

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I really can’t recall a time when reading “good news” left me feeling so confused. Should I be feeling joy or despair? While both articles stopped short of saying this was bad news, they both were quick to point out that this site selection was largely driven by the lower wage requirements typical of the U.S. South. This was attributed to the anti-union mindset of that region.

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Submitted by csouth9 on Wed, 10/21/2015 - 10:11

Airbus Plant Lands in Sweet Home, Alabama

I live in Mobile, Alabama, and have done so for almost 35 years.  I received my chemistry degree at a local university, and there are many well educated individuals in this area.  The local high schools as well as trade schools have been preparing students for this venture as soon as there was a possibility that Airbus would come to Mobile.  There is also a specific aerospace curriculum for training individuals.

We have several automobile manufacturing plants here in Alabama.  We also have many chemical manufacturing plants in the Mobile area (I work for one of them).  All of us are well trained, so it really hurts when people think that there are only a lot of "bumpkins" here in Alabama.

We are proud of our area as well as our state and its industries and its people.  Sweet Home Alabama!

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Submitted by Len Diamond on Wed, 10/21/2015 - 10:50

Airbus in Alabama

If memory serves, Boeing opened in South Carolina about the time they were having difficult negotiations with the union up North. Of course it was presented as a coincidence in timing...   

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Submitted by Reshore Now on Fri, 10/23/2015 - 12:28

Localization Makes Economic Sense

We see many American companies reshoring and foreign companies locating here to be in close proximity to the U.S. market.

Reshoring is a good strategic move for many companies due to rising offshore wages, counterfeit parts, IP risks, quality issues, risks along complicated supply chains, and carrying costs of large inventories. By reshoring and shortening supply chains, companies can greatly improve lead times, responsiveness to customers, quality, innovation and R&D.

As companies adopt a more comprehensive total cost analysis they are finding that rising offshore labor rates combined with other “hidden costs” of offshoring often counterbalance any remaining savings from cheap price or labor abroad. Some of these companies are sourcing in the U.S. because it makes good economic sense for them to do so.

The Reshoring Initiative Can Help.

The not-for-profit Reshoring Initiative’s free Total Cost of Ownership software helps corporations calculate the real P&L impact of reshoring or offshoring. In many cases, companies find that, although the production cost is lower offshore, the total cost is higher, making it a good economic decision to reshore manufacturing back to the U.S. http://www.reshorenow.org/TCO_Estimator.cfm

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