Executives of General Electric have announced that the conglomerate will be shutting down the manufacturing plant it has in Rochester, New York. Though approximately 145 employees work at the plant only about 90 will lose their jobs. Some employees in departments such as technical services, technology and sales will still be located in Rochester, New York in a building that is adjacent to the manufacturing facility.
Most of the work done at the General Electric manufacturing plant in Rochester, New York is the assembly of electronic boards that are used in various products sold by the conglomerate. A statement issued by a spokesperson of the company said the work being done currently at the plant was not core to the manufacturing capabilities of the conglomerate.
Outsourced to China
The work will consequently be outsourced to a partner supplier of General Electric, the Florida-based Jabil. GE’s partner supplier will move conduct the assembly of the electronic boards in China. Executives at General Electric assured the workers who will be losing their jobs that they would get tuition reimbursement and severance pay.
“… GE contracts 80 percent of these products to external partner suppliers already. Transferring work is always a tough decision, but we are committed to supporting our employees during this time of transition,” a statement issued by General Electric said.
The manufacturing plant in Rochester was acquired by General Electric in 2007 and it previously operated under the name Microwave Data Systems. It was founded in 1985.
Though only a relatively small number of jobs as manufacturing is moved to China, the move will be a blow to President Donald Trump’s claim that he is moving back jobs to the United States. In the most recent highly publicized development, the largest contract manufacturer in the world, Foxconn, disclosed that it would be building a manufacturing facility in the state of Wisconsin worth $10 billion.
The plant is expected to create approximately 3,000 jobs which in the next four years could rise to 13,000 jobs. According to Trump the investment could eventually rise to $30 billion though Foxconn executives could not confirm. Besides Foxconn, two auto manufacturers from Japan, Toyota and Mazda, have announced that they will be investing $1.6 billion in the United States. This is on an assembly plant for electric cars. The investment will create approximately 4,000 jobs and 300,000 electric and autonomous cars are expected to be rolled out every year.