Deere plans layoffs at eastern Iowa, western Illinois plants - Page 2
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  1. Top | #11
    sennister's Avatar
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    Quote Originally Posted by cheesetrain View Post
    Sennister hit the nail on the head I think. 50 people could be people retiring. My employer has done that twice in the last four years. Gave people that were less than two years away from retirement age an incentive package to retire early. Then the eliminated the positions. Way to cut payroll and other expenses related to full time employees. They are in the process of doing it again.
    This is the time of year to do it as well. More so in the northern states. After all...

    Winter is coming and FL/AZ and those other warmer states are starting to look nice right about now.

    Toss them a bone and say they can remain on corporate health care or a contribution to retirement account is all it takes to push some into retirement.

    For the company they get a few months to a year or so of reduced labor costs, make a statement to shareholders and others, then hire back in a new person that has no seniority at a lower wage once there is an uptick in operations. The former employee gets a few more months or years of retirement when they are healthier and able to enjoy it more.

    I won't say this is always the case, sure there are mass layoffs as big plants shut down and shift production to other countries. That hurts people and families. More often in these smaller layoffs it is more of a case where they get enough volunteers to bite and it is a win win for everyone.

    As others mentioned, with the wait times on the smaller stuff, some plants are busy. Not sure how much of their overall revenue stream is is made up by that smaller equipment. I also would rather avoid the tariff side of the discussion. That would be better discussed in other parts of the site.
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  3. Top | #12
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    Likely they are sitting on a large inventory.
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  4. Top | #13

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    It takes a lot of 1 series

    Quote Originally Posted by sennister View Post
    This is the time of year to do it as well. More so in the northern states. After all...

    Winter is coming and FL/AZ and those other warmer states are starting to look nice right about now.

    Toss them a bone and say they can remain on corporate health care or a contribution to retirement account is all it takes to push some into retirement.

    For the company they get a few months to a year or so of reduced labor costs, make a statement to shareholders and others, then hire back in a new person that has no seniority at a lower wage once there is an uptick in operations. The former employee gets a few more months or years of retirement when they are healthier and able to enjoy it more.

    I won't say this is always the case, sure there are mass layoffs as big plants shut down and shift production to other countries. That hurts people and families. More often in these smaller layoffs it is more of a case where they get enough volunteers to bite and it is a win win for everyone.

    As others mentioned, with the wait times on the smaller stuff, some plants are busy. Not sure how much of their overall revenue stream is is made up by that smaller equipment. I also would rather avoid the tariff side of the discussion. That would be better discussed in other parts of the site.
    I don't know the overall numbers between ag/forestry/construction/landscaping either but it takes a lot of smaller units to generate the same gross sale as a $500,000 combine. On the other hand, JD sells a lot of the smaller stuff so if they can make and sell 25 or so smaller units the gross revenue is about the same. I don't know about comparative profit margins, for all I know Deere might make more on the 25 units than the 1 combine.

    While I'm sure some people can move from one line to another, I would think the actual production line is very different and can't easily be converted. I suspect that if ag sales are down, there are whole lines shut down or going on shorter hours but again, I don't know the internal data at Deere.

    Treefarmer
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  6. Top | #14
    sennister's Avatar
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    Quote Originally Posted by Treefarmer View Post
    I don't know the overall numbers between ag/forestry/construction/landscaping either but it takes a lot of smaller units to generate the same gross sale as a $500,000 combine. On the other hand, JD sells a lot of the smaller stuff so if they can make and sell 25 or so smaller units the gross revenue is about the same. I don't know about comparative profit margins, for all I know Deere might make more on the 25 units than the 1 combine.

    While I'm sure some people can move from one line to another, I would think the actual production line is very different and can't easily be converted. I suspect that if ag sales are down, there are whole lines shut down or going on shorter hours but again, I don't know the internal data at Deere.

    Treefarmer
    I totally agree. Converting a production line doesn't make much sense unless they are never going to build a combine again. You are right, we have no idea what the profit margin is on a combine vs 1025R so there isn't a great answer.

    Also my In-laws worked for Andersen Windows for many years. Around the end of the year they would always idle the production line and accept voluntary layoffs. I don't know the numbers but (% of workers) they would lay off but it was annual thing and normally the more SR staff would line up for it. They would collect unemployment for part of the period and combine that with the profit share check they would get around this same time, from a financial perspective it was free vacation for 4-6 weeks. Staff that didn't take the layoff would be working on major maint projects while the plant is idle and upgrades to processes.

    Not saying that this is the case here but it isn't something that doesn't happen.
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    Talked with several employees the past week and they knew it was coming. Deere harvester had over hired this spring because of several production deadlines. They just got back from a shutdown to move a production line. I have a friend who was hired last November and it did not hit him. around here the word is they should be back to work in spring. A way of life in the Quad Cities.
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    The difficulty in getting contractors to perform work in our area is as much about the shortage of trades workers as it is about the thriving economy. The reality in the construction and trades business is there are very few younger people entering the "building trades" professions, which is a real shame. But to be perfectly honest, most young people don't want to work that hard. Plus, they have had it drilled into their heads for their entire period of indoctrination (K-Post Graduate educational period) that you have to get a college degree to be "successful".

    This is why a close friend, who sadly I have since lost to a sudden heart attack at his age 58, and I donated Welding equipment and other such machinery to the local high school which he and I both attended so they would restart the vocational training department. It's now been 4 years since we made the first substantial gift and just 3 years since my friend suddenly died. The good news is the vocational classes are full of students and thriving. I just wish my friend were here to see it.

    Of course, much of the "prepare them for college" staff strongly opposed our efforts. In fact, one said something to the extent of "So you want these kids to have menial employment their entire lives instead of a rewarding career with a college degree?" Some day, this idiot snooty educator won't even realize that she should thank us when her HVAC doesn't HVAC and her toilet doesn't flush. If younger people don't start taking these career positions, who is going to reply to the parents home of the unemployed college graduate with the masters degree in comparative literature when they find their parents basement is just too cold or too hot or they are knee deep in their own sewage?

    A large local building project was recently completed which required extensive block laying. They built a new $1.9 million dollar Humane Society facility and they had so much trouble trying to get mason's and block layers that the union halls called guys out of retirement and some were nearly 80 years old and were able to do the work and do it extremely well. Without these retired workers, the project wouldn't have been completed on time or near the budget total.

    Try and find young people who want to do cement work, lay block or brick, or just about any of the hard working, physically demanding careers which are critical in the construction fields. I can't recall the last time I had an HVAC guy who was under age 50 and the same with plumbers and every other trade. My HVAC contractor is a father and son team and the son is 55 and the father 73 and they both are going at it everyday. The grandson (son of the 55 year old) doesn't want to work that hard and is currently a basement dweller with his girlfriend in HER parents house, because my HVAC guy is so disgusted with his offspring.

    Another good friend, who owns an asphalt company and who is also the Township President of the commission, is 82 years old and works and runs his asphalt company every day. He can't find DOT drivers who can pass the drug screen. His son and grandson both want new company pick up trucks, but neither wants to work in the day to day hard work of laying asphalt. Both the son and grandson insist the asphalt is "just too hard" and while their father, grandfather is out doing it everyday at age 82, he is so disgusted with his offspring's lazy attitude that he is going to have an auction in the spring and sell all of his equipment, although he has said he is going to do this for the last 3 springs and instead, he struggles to find crew and keep going. If you met him, you would think he was maybe 67 or 68 years old. But clearly, time is not on his side any longer and one of these winters is going to be the last for his asphalt company.

    So, a robust building economy or even just an "active" building economy overwhelms most of the contractors as they struggle mightily to find workers. You can build a robot to do many things in the factory, but the robots aren't real productive or efficient at performing most if not nearly all of the duties of a tradesman.

    In many respects, we are fortunate the economy is even stronger as the shortages of workers would be even more constraining. We have local HVAC and Plumbing companies merging (3 area companies have now done this) and they are advertising for technicians and promoting 1st year earnings of up to $80,000 per year. $80k for a first year trades income as an employee is nothing to sneeze at in areas where the cost of living is reasonable.

    So, Deere's 50 to 100 job's doesn't really equate to much more than normal attrition from retirement, results of efficiency improvements, technology implementation, etc. Out of their workforce globally of 67,000 (as of 2018) the 110 workers represents 0.0016% of the John Deere workforce.

    The 52 week high for Deere common stock is $171.22 while the 52 week low is $128.32 and the stock closed yesterday at $166.55.
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    Speaking of "skills shortages" and passing drug tests....

    My daughter works for the local food bank. It's a BIG operation. They advertised for a warehouse position that requires driving. 2 of the 3 applicants didn't have drivers licenses. Even the non-driving positions are unfilled due to drug testing.

    Sweetie works in the Senior Living industry. Trying to get kitchen help and health aides is a never ending battle. Again, drug testing stops a lot of people. The wages are pretty sucky as well, but...
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    Quote Originally Posted by mark02tj View Post
    Speaking of "skills shortages" and passing drug tests....

    My daughter works for the local food bank. It's a BIG operation. They advertised for a warehouse position that requires driving. 2 of the 3 applicants didn't have drivers licenses. Even the non-driving positions are unfilled due to drug testing.

    Sweetie works in the Senior Living industry. Trying to get kitchen help and health aides is a never ending battle. Again, drug testing stops a lot of people. The wages are pretty sucky as well, but...
    That happens more than one would think, I had to turn away 3 applicants for our driver position because they couldn't believe that a CDL w/HazMat was required for an ad that clearly stated "CDL driver with HazMat" required.
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    Man, you are tough

    Quote Originally Posted by PJR832 View Post
    That happens more than one would think, I had to turn away 3 applicants for our driver position because they couldn't believe that a CDL w/HazMat was required for an ad that clearly stated "CDL driver with HazMat" required.
    You are certainly a demanding boss. Just because it's in the ad doesn't mean you really HAVE to have a CDL, it's like just a wish list- right? I mean, maybe you could just pay me for doing something while I think about getting the CDL. It can't be too hard and maybe I could just like not smoke weed for an hour or two before the drug test and it would be cool.

    C'mon man. I want a paycheck- your supposed to help us poor unfortunate people out or something. It's not like you run a business to make money or a product or anything, it's just to create jobs for us people. What are you, some kinda capitalist or something?

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    Quote Originally Posted by Treefarmer View Post
    You are certainly a demanding boss. Just because it's in the ad doesn't mean you really HAVE to have a CDL, it's like just a wish list- right? I mean, maybe you could just pay me for doing something while I think about getting the CDL. It can't be too hard and maybe I could just like not smoke weed for an hour or two before the drug test and it would be cool.

    C'mon man. I want a paycheck- your supposed to help us poor unfortunate people out or something. It's not like you run a business to make money or a product or anything, it's just to create jobs for us people. What are you, some kinda capitalist or something?

    Treefarmer in disguise
    Haha, one of them said “oh, I’ll just go get one” like it’s a pair of sneakers you just pick up at the store.
    I simply said “this interview is over”


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