GE: Counting on skilled labor

One of the world's largest companies, with more than half of its sales made abroad, General Electric (GE) could put imagination to work anywhere. But it still counts on skilled U.S. workers to produce much of what it sells everywhere else. Plants in South Carolina, New York and Pennsylvania regularly churn out locomotives, wind and gas turbines, jet engines and water-purification equipment.
The gas turbine rotor above, for example, was made by some of the 3,000-plus workers at GE's 413-acre Greenville, S.C., factory. Like most of the turbines from Greenville, that one is probably humming right now in some foreign country, because most of them are sold overseas.
GE says it still likes to manufacture in the U.S. to take advantage of a well-trained work force capable of handling the high-tech challenges of modern manufacturing. Apparently, that's not just talk. In May, GE announced plans to open a $100 million heavy-duty battery plant in upstate New York that is expected to create 350 jobs.
Brunswick: Boats (but not bowling balls)

In a Cincinnati workshop in the mid-1800s, Swiss immigrant John Moses Brunswick began crafting carriages, cabinets and chairs during the startup days of the company that still bears his name.
Brunswick (BC) is known today for a range of pleasure boats sold under brands such as Sea Ray and Bayliner, Mercury outboard boat engines, and Life Fitness and Hammer Strength workout equipment. Brunswick also makes pool tables and bowling balls.
Now based in Lake Forest, Ill., Brunswick is the biggest vendor of pleasure boats and boat engines anywhere. Last year it had annual sales of nearly $4 billion from those divisions. Most of the production still takes place in the U.S. despite a recent reorganization. Its biggest factories are in Fond du Lac, Wis., and Knoxville, Tenn.
Its seemingly all-American bowling balls are made in Mexico, though.
Harley: American-made is the brand

With the help of a childhood friend named William Harley and a dollop of good old American know-how, Arthur Davidson developed early prototypes of the world-famous Harley-Davidson (HOG) motorcycle a hundred years ago in his Wisconsin toolshed.
Ever since, virtually all Harleys have been made on U.S. turf, including the modern-day "Hogs" with their distinctive Big V-Twin engines, by now a piece of American culture. Many Harley riders wouldn't have it any other way -- one reason the company won't move production outside the U.S., company spokesman Bob Klein says.
The company resolved tense labor disputes at its big York, Pa., plant two years ago, and that plant, along with factories in Wisconsin and Missouri, continue to churn out bikes and accessories sold around the globe. Foreigners buy 30% of the bikes and gear sold by Harley-Davidson, the only major U.S. motorcycle company, helping to keep its 9,300 U.S. workers busy.
Boeing: The largest US exporter

Boeing (BA) is the biggest aircraft producer in the world and the second-largest aerospace and defense contractor. Though Boeing does now import parts from abroad, such as some of the components for its long-delayed 787 Dreamliner, all assembly takes place in the U.S. So it's no surprise that the Chicago company happens to be the nation's largest U.S. exporter.
Production of civilian planes, military jets, helicopters, missiles, satellites and other aerospace equipment keeps around 135,000 people employed throughout the U.S. Boeing's biggest factories are in Washington state and California. But the company also has operations in Alabama, Arizona, Kansas, Missouri, Pennsylvania and Texas.
Though Boeing faces fierce international competition from Europe's Airbus, it expects a boost when the Dreamliner enters service next year.
Dow: Worldwide but expanding in the US

Another huge U.S. multinational, Dow Chemical (DOW), makes 3,300 chemicals, plastics, coatings, herbicides and other products used in appliances, cars, farming, manufacturing and construction.
Dow has a truly global reach, with 150 manufacturing sites in 35 countries last year. But it hasn't abandoned the U.S. by any means. About a third of its plants -- 42 of them -- are spread out across 16 states.
In California, it makes Styrofoam, herbicides, pesticides and latex. It makes plastic for food packaging in Connecticut, chemicals in Illinois, adhesives and plastics for cars in Michigan, and chemicals and plastics used in paints and personal-care products in West Virginia, to name a few locations. Dow recently announced plans to expand manufacturing in Texas and Minnesota.
Caterpillar: Machines that move

Caterpillar's (CAT) trademark yellow bulldozers, big-wheel mining trucks and heavy-construction equipment are on jobs around the globe, but much of that equipment is still made exclusively by U.S. workers.
Indeed, Caterpillar is one of the best examples of a U.S. company that dispels the myth that "all the good manufacturing jobs have gone abroad." Last year, for example, Caterpillar exports from U.S. plants topped $16 billion. Foreign purchases sustain many of the 53,000 Caterpillar jobs in 28 states, not to mention thousands of jobs at Caterpillar suppliers.
Caterpillar's largest mining trucks, used around the globe, are made only at its Decatur, Ill., plant. Its big-wheel rock loaders are made exclusively in Aurora, Ill. And Caterpillar's large mining bulldozers are produced only in East Peoria, Ill. The company also makes turbines in San Diego.
Caterpillar does make equipment in foreign markets, and it is expanding production in India and China. But a $1 billion capacity expansion at five Illinois facilities, announced last year, indicates Caterpillar will remain a huge U.S. exporter for some time.
Hershey: Good taste is local

Besides figuring out how to make tasty milk-chocolate treats, Hershey (HSY) founder Milton Hershey was a fanatic about supporting the local communities around his business. That may be one reason Hershey has made most of its chocolate in the U.S. ever since the company was founded in 1894 -- even though cheap labor beckons from abroad.
Another is that Hershey gets 86% of its sales from inside the U.S. To ensure those Hershey's Kisses, chocolate bars, Reese's Peanut Butter Cups and Milk Duds arrive fresh, the company wants to produce them as close to consumers as possible.
Hershey has five plants in Pennsylvania, including a sprawling 2-million-square-foot plant, the largest chocolate factory in the world, in the city of Hershey. A Lancaster, Pa., plant cranks out more than a million miles' worth of Twizzler licorice a year. Hershey also makes sweets in Virginia, Illinois and Tennessee. And though it has plants or partnerships in Canada, Mexico, Brazil, India and China, most of the company's 14,000 workers are in the U.S.
Pfizer: Quality labor is the issue

A multinational pharmaceutical giant, Pfizer (FE) maintains plants in 46 locations around the world, including Singapore, Japan and Europe, where the "little blue pill" Viagra is made.
Despite the siren call of cheap labor and tax incentives from abroad, Pfizer still makes a large portion of its drugs and medical supplies in the U.S. About 2,300 workers at a Kalamazoo, Mich., plant produce sterile injectable drugs such as the anti-inflammatory Solu-Medrol, as well as ointments and surgical sponges. Pfizer has U.S. plants in Puerto Rico, Ohio, Nebraska, North Carolina and Illinois, as well.
The company wouldn't reveal how much of its overall output is made in the U.S. But 55% of its $31 billion in assets -- including patents, property, plants and equipment -- is in the U.S.
Why does Pfizer make so much in the U.S. even though labor may be cheaper elsewhere?
"It's not just about costs," says Tony Maddaluna, Pfizer's vice president for strategy and supply network transformation. Quality, reliability and flexibility of a work force are all crucial as well, and U.S. workers offer all three, he says.
U.S. Steel: An industrial survivor

Founded by J.P. Morgan and industrialist Elbert Gary in 1901, United States Steel (X) was once the biggest company in the world. By the 1980s, it had resorted to painful restructuring to remain competitive, reducing domestic steel production and its work force dramatically.
But it's still the largest U.S.-based integrated steel producer and the world's eighth-largest steel producer. About 75% of the company's 32 million tons of annual steel production capacity is in North America. Most of that is in the U.S., as is most of the company's 29,000-strong North American work force.
The steel maker's biggest plants are in Gary, Ind., and Pittsburgh. But it also has operations in Alabama, California, Illinois, Michigan, Minnesota, Ohio and Texas.
Fender: Made better in America

When Bruce Springsteen reaches for his main ax to go on stage, he grabs a Fender -- and not just any Fender. He uses one of Leo Fender's originals, a guitar born in the USA. The Fender Stratocasters and Telecasters played by dozens of other guitar greats, including rockers such as Eric Clapton, John Mayer, Mark Knopfler and Keith Richards, are also made here.
Fender Musical Instruments does make versions of Strats and Teles -- its two most popular lines -- in Mexico and Asia. And those foreign models cost less. But even aspiring musicians who don't earn rock-star pay opt for Fenders from the company's U.S. plant in Corona, Calif., whenever they can afford them.
They prize the craftsmanship at Fender's U.S. plant, which all but guarantees an instrument that will play better and hold up longer. U.S.-made guitars also do a superior job of bringing out the signature Fender sparkle and growl, which define the spirit of rock 'n' roll for so many musicians and fans alike. It's a case study in why businesses don't always opt for cheaper labor.
What do you think?
- How hard do you try to buy American?
- I look for the label, and I'll pay more for U.S.-made products.
65% - I look when I'm shopping, but I won’t pay more for U.S.-made products.
17% - I don't even try.
18%
- I look for the label, and I'll pay more for U.S.-made products.
Do you go out of your way to buy American? Answer the poll (above), then tell us why or why not in our message board. Don't miss the accompanying article, "The myth of US industry's demise." Also, check out this slide show that reveals the 10 ways you can still buy American.
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Published May 20, 2009
At the time of publication, Michael Brush did not own or control shares of any company mentioned in this slide show.
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