O.T. Foxconn

[Phantom Warrior]

Just read this article.

http://www.marketwatch.com/story/this-1-number-sums-up-why-that-foxconn-deal-is-over-the-top-bad-for-wisconsin-2017-07-28?siteid=yhoof2&yptr=yahoo

Just wondering what others with more background in business think of the article and what they think of this deal.

Seems to me that most Wisconsin residents will look at this deal no deeper than this company is going to provide thousands of decent-paying jobs in the area. But after reading this article, I can't help wondering if Wisconsin residents are getting scammed by the Governor and his cohorts.

Thoughts?

[MU/Panther]

Well, many Dems are in love that Foxconn is coming to Wisconsin, so it's just not the Governor and Co. Also hear strong push that the Bucks are wanting Foxconn for the new naming rights deal at over $6 million plus per year.

[Phantom Warrior]

So you think this is a good deal for Wisconsin or a bad deal?

[MU/Panther]

So you think this is a good deal for Wisconsin or a bad deal? In people I hear and trust, this is a great deal for Wisconsin. Wisconsin will not be paying out any money to Foxconn, until Foxconn hits the marks in the contract to earn the money from the State of Wisconsin.

The sports teams, the Bucks and Admirals are in major support of this. To the point they were at the press conference in Milwaukee on Friday. Bucks, Peter Feigin was at the White House for the Thursday press conference.

[Goose85]

Based on history, I don't trust Foxconn, but the money the state of Wisconsin is going to pay them, and what I'm sure Racine will be paying them, it is probably a no brainer for Foxconn. I hope that most are good paying jobs, but I'm concerned that there will be a lot of jobs Wisconsinites just won't take. To fill the jobs I think we will need a lot of out of state workers that will need to come in that are willing to work for $15 per hour.

In addition to the state, I'm sure Racine will need to pony up a bunch of money (sewers, roads, infrastructure).

New industry and jobs to the state are a good thing, and I'm all for that, but over the next 20 years I think the state of Wisconsin will be paying the salaries for Foxconn employees (even if all employment goals are not met), so I'm not so sure it will be a good financial deal for the state. I would bet that Wisconsin tax payers will be paying for a lot of workers on H2B visas to man a good number of the positions at this plant. My guess is taxpayers outside of southeast Wisconsin might not be very thrilled with the deal either.

[Markedman]

Scammed by the Governor and his cohorts?

Seriously......

You can either like the deal or not like it...but its not a scam.

ps lots of assumptions and guesses there goose........

[Goose85]

Scammed by the Governor and his cohorts?

Seriously......

You can either like the deal or not like it...but its not a scam.

ps lots of assumptions and guesses there goose........

Agreed, and I hope it all works out great, but when you are putting up that kind of money hopefully all of those assumptions, guesses, and countless others are addressed. The devil is in the details, and I hope everything works out as this could really be a catalyst for other business growth in whatever location Foxconn lands.

[IWB]

Just curious, how much money is the state putting up for this?

[CaribouJim]

Illinois could be an beneficiary as well. Those damn FIBS!!!

http://www.chicagotribune.com/business/columnists/ct-foxconn-illinois-wins-robert-reed--0730-biz-20170727-column.html

[MU/Panther]

Just curious, how much money is the state putting up for this?
It could be up to $3 billion. That does not happen until Foxconn fills it's quota.

[MU/Panther]

Scammed by the Governor and his cohorts?

Seriously......

You can either like the deal or not like it...but its not a scam.

ps lots of assumptions and guesses there goose........ Plus, jobs are starting at $35,000 per year, which is pretty dam good!

[IWB]

It could be up to $3 billion. That does not happen until Foxconn fills it's quota.

And people threw a fit that the state was putting up money for an arena.

[mufansince72]

All I know is I wish they would quit lying and saying the state is giving them 3 Billion. Yes, there are some credits, that will have to be paid when they actually hire the workers. However, at least half of the deal is a tax holiday. I.E. If Foxconn wasn't here, that revenue wouldn't be generated in the first place. The state is not writing them 3 billion in checks. Few articles mention any of the other economic development that this will generate. Suppliers for instance - There was news yesterday that Corning Glass may locate a plant here as well at around 1 Billion. Also, just think of the construction, not only for the plant, but for new subdivisions, restaurants, hotels, retail.

While I highly doubt the plant will end up being as big as the governor has touted, this seems like a no brainer to me.

[Halo]

And people threw a fit that the state was putting up money for an arena.

As they did with the Brewers stadium was built. Wasn't Lambeau also a tough sell for Harlan? Wisconsinites are very frugal.

[IWB]

Annoys me that the state can offer up billions to Foxconn without even a discussion, but have to go through the wringer to invest in a stadium.

[mufansince72]

Plus, jobs are starting at $35,000 per year, which is pretty dam good!

I didn't see anything about a starting wage. I saw the average was going to be 53k plus benefits.

[Nukem2]

I didn't see anything about a starting wage. I saw the average was going to be 53k plus benefits.
Some are thinking the 53K includes benefits.

[mufansince72]

Some are thinking the 53K includes benefits.

At least the initial stories said plus benefits. $53,875 plus benefits. http://www.jsonline.com/story/news/politics/2017/07/26/foxconn-fact-sheet/514634001/

[WarriorOMalley82]

Just a side note this company has a long list of saying they will build a big facility in other countries and then there is no follow thru. I hope the deal goes thru because it should help with other suppliers, but not certain it will ever happen.

https://www.extremetech.com/mobile/253330-foxconn-claims-itll-build-factory-wisconsin-dont-hold-breath

[mufansince72]

Just a side note this company has a long list of saying they will build a big facility in other countries and then there is no follow thru. I hope the deal goes thru because it should help with other suppliers, but not certain it will ever happen.

https://www.extremetech.com/mobile/253330-foxconn-claims-itll-build-factory-wisconsin-dont-hold-breath

The article lost credibility in the first sentence when it said that Foxconn was a Chinese company. Even if the rest of it is partially true.

[Goose85]

The people most excited about this should be Milwaukee Mayor and County Exec and folks in Northern Ill, and I think they are too.
The state is paying the subsidy for Foxconn while Racine or Kenosha will likely have a huge bill in infrastructure and acquisition costs.
Milwaukee and Northern Ill will likely get the benefit of their residents working in the plant without having to foot the bill.

The state will "cut a check" with the size of the check depending on how many workers, up to $3 billion. I would not hold my breath worrying about the state having to pay that amount as based on track record I'm not sure Foxconn will get that size anytime soon.