In December of 2016, then President-Elect Donald Trump brokered a deal with the Carrier Corporation and the state of Indiana to keep an Indianapolis factory from closing. Carrier was offered approximately $7 million in government incentives, and the deal preserved about 800 jobs and kept the Indianapolis plant open.
What is the status of this deal today?
Despite the factory being kept open, approximately 550 jobs are still being eliminated from the Indiana plant. In addition, a Huntington, Indiana plant not included in the deal will also be closing and outsourcing jobs to Mexico. It is estimated that around 700 jobs will be lost in the closing. The New York Times speculates that another 800 jobs at Carrier could be lost to automation.
Employees at another Indianapolis plant were not so lucky. Rexnord recently closed its Indianapolis plant, outsourcing approximately 300 jobs to Mexico. Trump’s deal with Carrier was an unusual negotiation, and so far he has not repeated the process with other manufacturing facilities.
What can business owners learn from this situation?
While cutting costs is important, no business owner likes to eliminate positions or let employees go due to lack of resources. Having a strategic cost-cutting plan in place can help keep you from ending up in this difficult situation. We can help you lower expenses, without reducing your workforce.
Our process is risk-free; if we don’t find areas where you can lower your expenses, you owe us nothing. That’s how confident we are that we can find places to help you save and operate more efficiently.
Contact us today to get started, or check out our case studies to see how we’ve helped other businesses across a variety of industries lower their expenses.
