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City by the Lake.org, The Voice of Michigan City, Indiana _ City Talk _ Federal Mogul Wiper Products to cease operations in Michigan City
Posted by: taxthedeer Jun 27 2012, 09:20 PM
It was announced today that Federal Mogul Wiper Products will cease operations at it's Michigan City plant at 402 Royal Rd by the end of 2012.
Posted by: MCRogers1974 Jun 27 2012, 10:16 PM
Thiss is yet another small disaster for the manufacturing community. I remember when ANCO consolidated three operations, which were located around the Valparaiso area, into the old Royal Metal plant here in MC. They had quite the operation in MC at one time. Then, I understand, most of the production moved to Mexico. Sorry to hear this news.
Posted by: taxthedeer Jun 28 2012, 04:08 AM
Thiss is yet another small disaster for the manufacturing community. I remember when ANCO consolidated three operations, which were located around the Valparaiso area, into the old Royal Metal plant here in MC. They had quite the operation in MC at one time. Then, I understand, most of the production moved to Mexico. Sorry to hear this news.
When I began working there in 1990 there were 1,200 employees, I am fortunate to have worked there 18 years. It was La Porte counties largest employer at the time. In the early 80s consolidated their plant on Grant St. in Gary, their plant on Campbell St. in Valpo and their warehouse on Hwy 149 in Burns Harbor into the Royal Rd. location. They had their first major layoff in 1993 when they lost their original equipment wiper arm contracts then again in 2000 located a major part of it's aftermarket assembly production to Juarez, Mexico. Since then a most of their aftermarket share has been swallowed up by overseas distributors. Today they probably employ about less than 100. Since 2000 most of the Windshield Wiper of the components were manufactured here in Michigan City and exported to their plant in Juarez.
Posted by: Southsider2k12 Jun 28 2012, 06:27 AM
Sad to hear it is going, but it isn't a big surprise after all of the layoffs and shutting down of lines over the years.
Posted by: taxthedeer Jun 28 2012, 07:00 AM
Sad to hear it is going, but it isn't a big surprise after all of the layoffs and shutting down of lines over the years.
Posted by: Southsider2k12 Jun 29 2012, 09:35 AM
http://www.nwitimes.com/business/local/federal-mogul-leaving-michigan-city-for-mexico/article_1eb40cfc-db11-5cb9-9a50-2708c0cad8f8.html
• By Stan Maddux Times Correspondent
A company that makes wiper blades has decided to leave Michigan City for Mexico.
Federal Mogul told its 100 employees Wednesday about its intention to leave by the end of the year.
Local officials are hoping to convince the company to stay.
''We've already reached out to them in several ways,'' said Kevin Kieft, executive director of the Michigan City Economic Development Corp.
Federal Mogul is a worldwide maker of automobile parts, including wiper blades.
Jim Burke, director of corporate communications for Federal Mogul, said the plant on Michigan City's east side makes strictly wiper blades and will be merged with another wiper blade manufacturing facility belonging to the company in Juarez, Mexico.
He said the plant in Mexico has enough capacity to pick up the production from Michigan City in a move geared toward increasing efficiency and reducing costs.
''This is part of a company strategy to consolidate our wiper manufacturing capacity. It's certainly unfortunate we need to make this decision,'' Burke said.
In 2009, steel cable and assembly manufacturer Sanlo Inc. announced it was leaving Michigan City then a year later decided to stay.
That's something local officials pointed to in launching a bid to retain Federal Mogul at a facility with a long history of making wiper blades formerly owned by Anco.
Federal Mogul less than a decade ago revealed a desire to leave but stayed after reducing a workforce by more than several hundred.
''It's very disappointing but we are going to do everything we can to see if there's anything we can do to keep them here,'' said Michigan City Mayor Ron Meer.
He said tax abatement and low interest loans are among the things that can help the company.
"I think it's very important American companies and industries consider the effect it has when they pull their operations out of the United States and go to another country,'' Meer said.
Burke said Federal Mogul has two other wiper blade manufacturing sites in Europe. The company has a total of 45,000 employees in more than 30 countries.
Posted by: Southsider2k12 Jun 29 2012, 09:37 AM
http://heraldargus.com/articles/2012/06/28/news/local/doc4feb9e73ced2a540748244.txt
By Deborah Sederberg
Staff writer
Published: Thursday, June 28, 2012 5:06 PM CDT
MICHIGAN CITY — Federal Mogul officials met with employees Wednesday morning to discuss the company's decision to cease manufacturing at the Michigan City plant at the end of the year.
According to Jim Burke, director of corporate communication for Federal Mogul, 402 Royal Road, the company plans to move the local manufacturing operation to Juarez, Mexico, where the company already has a facility.
The move is about "achieving greater efficiency," Burke said. "It will make us more competitive."
Some local employees may be offered positions at other Federal Mogul plants, Burke said. In addition, he said, the company will do what it can to assist employees who will lose their jobs, but he was not yet prepared to describe the severance program.
Federal Mogul employs about 100 people in Michigan City, both in manufacturing and in support positions.
On its website, Federal Mogul describes itself as "a $6.9 billion leading global automotive supplier offering a comprehensive portfolio of quality products, trusted brands and creative solutions to original equipment manufacturers of automotive, light commercial, heavy-duty and off-highway vehicles, as well as in power generation, aerospace, marine, rail, industrial, and the worldwide after market."
While the company has made its closing announcement, Kevin Kieft, executive director of the Michigan City Economic Development Corporation, has not given up hope.
Mayor Ron Meer, who had spoken with Federal Mogul officials on Wednesday, also expressed the hope that the retention and expansion arm of the economic development corporation can make a convincing case for remaining in Michigan City.
Just last year, the EDC, working with other agencies, saved 70 jobs at Sanlo Manufacturing.
Sanlo's local plant officials and corporate management collaborated with city officials and two training agencies to assist in keeping the factory here.
The Northwest Indiana Workforce Board and the Center of Workforce Innovations collaborated with Sanlo to secure training funds from the Indiana Department of Workforce Development to prepare some workers to operate new equipment and to improve the skills of other employees.
Companies move manufacturing jobs to Mexico because "they want to pay low, low wages," Kieft said.
But other problems may present themselves.
"Security is an issue (in Mexico)" Kieft said, "and (manufacturing plants there) just can't match the quality of U.S. manufacturers," he said.
Both Kieft and Meer pledged to work to keep Federal Mogul and its jobs here.
"It's tough," Kieft admitted, "but we will do everything we can we can" to keep Federal Mogul in the community.
Posted by: taxthedeer Jun 29 2012, 09:56 AM
CTBL scoops all the media outlets again!!!
Posted by: taxthedeer Jul 14 2012, 10:18 AM
Company Timeline:
- 1918: The Anderson Company was founded by John W. Anderson in Gary, IN
- 1967: John W. Anderson passed away in 1967. The Anderson Company had been set up as a trust when he passed away.
- 1977: The federal government said that ten years was the maximum that ANCO could be operated as a Trust. It was then put on the market.
- 1978: Champion Spark Plug purchased The Anderson Company. John W. Anderson was inducted into the Automotive Hall of Fame
- 1980: A claim was filed with the Federal Trade Commission that Champion's 1978 purchase of The Anderson Company violated anti-trust laws and would create a monopoly if Champion was allowed to continue to own ANCO.
- 1983: On May 19, 1983 the Federal Trade Commission's anti-trust claim was denied and Champion was allowed to keep ANCO.
- 1984: Champion consolidated its Gary, Valparaiso and Burns Harbor ANCO Windshield Wiper plants and located it's operations to 402 Royal Rd. Michigan City, IN
- 1989: Cooper Industries purchased Champion and all it's subsidiaries (including ANCO) (a bidding war between Cooper and Dana Corp)
- 1993: Gereral Motors announced that it will no longer purchase it's original equipment ANCO wiper arms from Cooper and instead buy them from ANCO's long time competitor TRICO. This announcement essentially put ANCO for the most part out of the original equipment windshield wiper manufacturing business. ANCO was forced to layoff 300 workers from it's Michigan City plant as a result. ANCO's main focus was then shifted to it's aftermarket windshield wiper blade sales
- 1998: In April of 1998 Cooper announced that it would sell its automotive products division.
- 1998: In August of 1998 Federal-Mogul then purchased Coopers Automotive division. Federal Mogul CEO Dick Snell had a big plan to spend lots of money and acquire as many companies as he can and the process Federal Mogul purchased several of companies in the United Kingdom that held multiple asbestos liability litigation claims against them
- 2000: On March 5, 2000 Federal-Mogul announced it was going to relocate ANCO's assembly, finishing and packaging operations to Juarez, Mexico but continued to manufacture it's aftermarket wiper components in Michigan City and export them to Juarez. ANCO laid off an additional 600 workers in Michigan City.
- 2002: Due to it's massive Asbestos Liability Litigation Payout in the United Kingdom Federal-Mogul was forced to file chapter 11 bankruptcy. CEO Dick Snell was let go from Federal-Mogul but still collected a paycheck for quite sometime. During this time ANCO continued to gradually lay off workers from it's Michigan City facility
- 2008: Federal-Mogul emerged from chapter 11 bankruptcy. ANCO still gradually continued to lay off workers from it's Michigan City facility (including myself) as overseas distributors began to infiltrate and subsequently devour ANCO's retail aftermarket windshield wiper share
- 2012: Federal-Mogul announced that it will cease operations at it's Michigan City facility at years end and will relocate it's remaining operations to Juarez, Mexico ending 95 years of Windshield Wiper manufacturing in Northwest Indiana
- 2013: John W. Anderson will roll over in his grave for the 100,000th time
Posted by: Ang Jul 16 2012, 07:09 AM
Thank you Bill Clinton for signing the NAFTA.....this is a prime example of the negative effects of that trade agreement.
Posted by: taxthedeer Jul 16 2012, 03:32 PM
Thank you Bill Clinton for signing the NAFTA.....this is a prime example of the negative effects of that trade agreement.
Here's Tricky Dick shaking hands with Chairman Mao during his February 1972 visit to China:
Posted by: Southsider2k12 Jul 17 2012, 06:41 AM
If there is a president we can really thank for our trade woes we need to go back a few administrations before Clinton.
Here's Tricky Dick shaking hands with Chairman Mao during his February 1972 visit to China:
Keep going back further than that. Many of our wars were fought over economic purposes that had to do with trade. the French and Indian war centered around colonists wanting to expand their land own, trapping, and hunting ranges because furs sold so high in Europe. A secondary issue in the civil war was the price of cotton in Europe, and the South really though they would have England come into the war on their side because of it. You can look through all of our history and find where cheap trade in or out of the US was involved. Despite the propaganda of both political parties, this has been around for centuries, not decades.
Posted by: Ang Jul 17 2012, 07:50 AM
Yeah, but as soon as NAFTA was signed, manufacturing started moving overseas and our economy started its downward slide.
I'm not talking about wars over trade. I'm talking loss of jobs over trade.
Posted by: Southsider2k12 Jul 17 2012, 08:03 AM
Yeah, but as soon as NAFTA was signed, manufacturing started moving overseas and our economy started its downward slide.
I'm not talking about wars over trade. I'm talking loss of jobs over trade.
It all goes back to jobs and trade. We have been importing cheap foreign crap for generations now. It is our history. Pretty much when any industry in the US matures and becomes successful and expensive in terms of wages and profits, people outside of the US will start trying to get into the market. Look at anything. Radios, TVs, cars, steel, computers, textiles, etc. All of them were at one time dominated by the US, and undercut before too long. All of those industries were destroyed long before Clinton came along. Most were destroyed long before Nixon.
Posted by: taxthedeer Jul 18 2012, 06:29 PM
The Anderson Company Employee Handbook circa 1974:
Posted by: ChickenCityRoller Jul 18 2012, 09:33 PM
Tax,Very interesting history. Thanks for sharing.
Posted by: ChickenCityRoller Jul 18 2012, 09:34 PM
Read the very last section on smoking. It seems so foreign these days.
Posted by: Ang Jul 19 2012, 07:55 AM
I like the section on personal appearance. Companies need to get back to that. Oh wait! it's a violation of our civil rights! My bad.
Posted by: MCRogers1974 Jul 19 2012, 08:07 AM
The Anderson Company Employee Handbook circa 1974:
Very interesting. The entire document seems as though it is from the stone age; 99% of the employees are white, talk of Christmas hams (not holiday hams), providing counseling services, legal advice, etc. What a different world we live in these days.
Posted by: taxthedeer Jul 19 2012, 08:10 AM
One particular thing to notice is back in those days Anderson Company management was really careful not to use the term "Credit Union". Instead they referred it as a "Credit Group".
They also wanted it to be well known that on page iv., "Since 1923, the number of ANCO Employees has grown from 25 to over 1,500. And in all that time there has never been a work interruption due to a misunderstanding among its employees. This close team cooperation is one of the main reasons why ANCO has been able to finance its growth and stabilize its employment."
Posted by: MCRogers1974 Jul 19 2012, 08:42 AM
One particular thing to notice is back in those days Anderson Company management was really careful not to use the term "Credit Union". Instead they referred it as a "Credit Group".
They also wanted it to be well known that on page iv., "Since 1923, the number of ANCO Employees has grown from 25 to over 1,500. And in all that time there has never been a work interruption due to a misunderstanding among its employees. This close team cooperation is one of the main reasons why ANCO has been able to finance its growth and stabilize its employment."
Looks like management never missed an opportunity to spin their viewpoint. Some things never change.
Posted by: taxthedeer Jul 19 2012, 12:15 PM
I always thought that picture on the cover of the former ANCO Gary plant at 11th & Grant Street was really cool. You can see the buildings in downtown Gary along Broadway and USS Gary Works in the background.
Posted by: Equalizer Aug 14 2012, 12:22 PM
I always thought that picture on the cover of the former ANCO Gary plant at 11th & Grant Street was really cool. You can see the buildings in downtown Gary along Broadway and USS Gary Works in the background.
It is obvious this area is not user friendly to manufacturing... something very wrong here that the political light here promotes the decline of the local economy. Just like blocking Franklin Street and destroying the heart of Michigan City.
Posted by: MCRogers1974 Aug 15 2012, 06:05 AM
It is obvious this area is not user friendly to manufacturing... something very wrong here that the political light here promotes the decline of the local economy. Just like blocking Franklin Street and destroying the heart of Michigan City.
Sadly, it is not this geographic area which is the problem. The central problem is that most manufacturing type work can be done in a third world country such as Vietnam, etc. - places where they have no environmental laws, child labor laws, minimum wage laws. Tough to compete with the third world countries.
Posted by: southyards Aug 15 2012, 06:58 AM
Sadly, it is not this geographic area which is the problem. The central problem is that most manufacturing type work can be done in a third world country such as Vietnam, etc. - places where they have no environmental laws, child labor laws, minimum wage laws. Tough to compete with the third world countries.
Here’s a link to an interesting story titled “Factory owners: Federal prisoners stealing our business. ” The article is about Unicor Company, located in the U.S.
http://money.cnn.com/2012/08/14/smallbusiness/federal-prison-business/index.html?hpt=hp_t2
The gist of the article is that Unicor is a government-run enterprise that employs over 13,000 inmates -- at wages as low as 23 cents an hour -- to make goods for the Pentagon and other federal agencies.
With some exceptions, Unicor gets first dibs on federal contracts over private companies as long as its bid is comparable in price, quantity and delivery. In other words: If Unicor wants a contract, it gets it.
Posted by: Southsider2k12 Aug 15 2012, 07:09 AM
Sadly, it is not this geographic area which is the problem. The central problem is that most manufacturing type work can be done in a third world country such as Vietnam, etc. - places where they have no environmental laws, child labor laws, minimum wage laws. Tough to compete with the third world countries.
Dead on with this post.
This is a world wide phenomenon, not just Michigan City.
Posted by: diggler Aug 15 2012, 07:42 PM
Posted by: taxthedeer Aug 16 2012, 01:38 PM
https://maps.google.com/maps?hl=en&q=federal+mogul+juarez&safe=off&ie=UTF-8&ei=O0stUKiNM6iMyAHMyoGoBA&sqi=2&ved=0CDYQ_AUoAg
Posted by: MCRogers1974 Aug 16 2012, 01:50 PM
Here is a map that shows Federal Mogul plant in Juarez in relationship with the Mexican/U.S. border and El Paso, Texas:
https://maps.google.com/maps?hl=en&q=federal+mogul+juarez&safe=off&ie=UTF-8&ei=O0stUKiNM6iMyAHMyoGoBA&sqi=2&ved=0CDYQ_AUoAg
How can we compete with that?
Posted by: diggler Aug 16 2012, 01:55 PM
Company always advertised in the Dispatch for wiper assembly workers. Last time it was like $10 hr. Think they'll eventually move to China.
Posted by: MCRogers1974 Aug 16 2012, 03:55 PM
Company always advertised in the Dispatch for wiper assembly workers. Last time it was like $10 hr. Think they'll eventually move to China.
Seems to be the migration of manufacturing jobs over the past 30 years. From the Upper Midwest to North Carolina to Mexico to China to Vietnam. There will always be a cheaper place to do business.
Posted by: taxthedeer Aug 16 2012, 06:31 PM
Company always advertised in the Dispatch for wiper assembly workers. Last time it was like $10 hr. Think they'll eventually move to China.
Posted by: MCRogers1974 Aug 16 2012, 06:46 PM
The ANCO brand of windshield wipers will eventually be discontinued in my opinion. Overseas distributors simply make a cheap blade package it and put any type of label on it, ship it over ato the U.S.nd sell it on our store shelves.
I went to Sears and found wiper blades marketed under the Valvoline Motor Oil name. I didn't check the country of origin for the product though I wish I had.
Posted by: taxthedeer Aug 16 2012, 08:16 PM
How can we compete with that?
Remember this is the same company that our City Counsel is continuing to grant a tax abatement.
Posted by: taxthedeer Aug 19 2012, 03:15 PM
I went to Sears and found wiper blades marketed under the Valvoline Motor Oil name. I didn't check the country of origin for the product though I wish I had.
Posted by: MCRogers1974 Aug 19 2012, 03:31 PM
China
Well, looks like they will be produced in Vietnam or some other lower tier third world country next. At least according to my manufacturing theory of the past 30 years.
Posted by: taxthedeer Aug 29 2012, 07:32 AM
Here's a story from the August 2006 Post-Tribune featuring The Anderson Company Retirees Breakfast:
Posted by: MCRogers1974 Aug 29 2012, 08:37 AM
Here's a story from the August 2006 Post-Tribune featuring The Anderson Company Retirees Breakfast:
The "social contract" between employer and employee has changed. We live in a different world these days.
Posted by: taxthedeer Oct 27 2012, 06:06 AM
I spoke with one of my former co-workers at a football game last night, Federal-Mogul is shutting down ANCO's plastic department by the end of the year, rubber extrusion line by the end of April 2013 and finally special products by September 2013.
Posted by: taxthedeer Nov 22 2012, 09:21 AM
Yesterday was the last day of production in Michigan City for the plastics department at Federal-Mogul. Federal-Mogul did that so they did not have to pay the employees for Thanksgiving and Christmas Holiday and did not have to pay out any insurance for the month of December. I hope my former co-workers were wise and used up all of their vacation so they can begin to draw unemployment following next week.
When myself and four of my co-workers were let go back on Febuary 29, 2008, they waited until the very last day of the month because if we would have worked on day in April Federal Mogul would have had to pay out another month's insurance for the five of us. They also paid us our four weeks vacation for 2008 which was fine and dandy but that meant we had to wait 5 weeks to begin drawing unemployment, if we would have used all my vacation days in that month of Febuary I would have been able to start drawing unemployement the following week, so basically we worked our last month at Federal-Mogul for nothing.
Posted by: Commuter Nov 23 2012, 04:26 PM
so sad that we all grew up in a generation where US manufacturing was the only game in town.
Europe and Japan were in tatters after WWII and the US performed nearly all of the world's production.
Bureaucracy in the UK and Europe (read: taxes) were so high that nothing cheap could be produced there.
Now that's all changed now that Americans are satisfied buying products made by children and slaves -- even if it has a US Flag or a NASCAR logo on it or similar.
I'm a big proponent of buying used -- eBay, craigslist, etc. each purchase one makes from a neighbor in this country is money that stays in this country and strengthens the dollar. Each purchase made of a new foreign-made product sucks value OUT of the country and depresses the dollar.
Hopefully people will learn this as the internet connects more and more people.
Posted by: taxthedeer Jun 20 2013, 07:22 AM
Spoke with a few of my friends over the last couple of weekends. Production at ANCO's Michigan City plant will cease in July and operations will be completely moved to Juarez, Mexico.
Buy Goodyear wiper blades, they are made in the USA and provide a good quality wipe, Goodyear manufacturers them in various lengths from 11" to 28" and are sold at Costco Discount Warehouse. The nearest Costco warehouse to Michigan City is off I-65/U.S. 30 shopping area center area in Merrillville.
http://www.costco.com/Goodyear-Wiper-Blades.product.100017127.html
Posted by: taxthedeer Jul 31 2013, 05:04 PM
Friday will be the final production shift at ANCO.
Posted by: taxthedeer Aug 7 2015, 01:13 PM
Just drove by the old ANCO plant on Royal Rd. earlier today and took these pictures.
Since the plant closed a couple years ago the parking lot has metamorphasized into an "urban forest".
Sad to see this knowing that when I hired in over 25 years ago the company was 1,200 employees strong running on 3 shifts. It was at one time La Porte County's largest employer.
They even brought three bus loads of mostly Macedonian workers from Lake County everyday.
The upper north parking lot had to be added to accommodate the afternoon shift employees who had nowhere else to park when they came to work.
Almost brings a tear to my eye.
Posted by: taxthedeer Aug 7 2015, 09:11 PM
I've been informed by city officials that Federal Mogul is $45,000 delinquent in their property taxes and that NICTD is going to purchase the property for that amount at tax sale in October.
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