AND WHICH PLANTS MIGHT BE NEXT …
|| By FITSNEWS || This week “economic developers” in the South Carolina Upstate announced that a Michelin tire plant would be mothballed.
The facility – which was built less than three years ago at a cost of more than $7.8 million to taxpayers – represents a major jolt to S.C. governor Nikki Haley‘s economic development strategy, which is to spend millions of tax dollars effectively bribing tire companies to locate or expand in the Palmetto State.
What caused Michelin to mothball its facility in Starr, S.C.?
Easy … Caterpillar.
The global industrial giant announced plans this week to lay off up to 10,000 workers in response to “challenging marketplace conditions in key regions and industry sectors – namely in mining and energy.” Caterpillar is expected to post its third consecutive year of negative sales in 2015, and things are supposed to get even worse for the company in 2016.
With worldwide mining and oil production suffering, things are looking increasingly grim for Caterpillar and its suppliers. That includes Michelin – which makes the giant tires for the Caterpillar (and Komatsu) off-road mine trucks.
We spoke with a pair of influential South Carolina businessmen with deep ties to the state’s manufacturing industry. Both of them told us Caterpillar’s problems could have a severe ripple effect on the Palmetto State’s economy.
“This is a leading edge company,” one of the businessmen told us. “They are a bellwether. These aren’t widgets, these are gigantic, sophisticated, expensive machines – and they don’t get built unless the purchasers are bullish on the economy.”
“They are brutally honest and almost always ahead of the curve with their predictions,” another businessman told us.
Which South Carolina tire facility will be the next to feel the sting?
Stay tuned …
28 comments
And I thought it was Nikki Haley’s fault.
Nope, it’s still all Bush’s fault…
Brian Williams was there and first reported when Bush made that happen.
Yeah. I was there, I saw him do it. HAHAHAHAHAHAHAHA.
No different then the real estate market, booms and bust. How does one relate various economic swings to the election of a Governor?
“No different then the real estate market, booms and bust.”
I think there’s an economic theory out there that explains why such dramatic booms & busts occur.
“…at a cost of more than $7.8 million to taxpayers…
So you’re saying that tax payers paid someone $7.8 million dollars – or perhaps did you mean that they were given tax credits?
What’s the difference you ask? What would the tax payers have gotten if Michelin had gone to Tennessee or Zimbabwe? Answer, not a damn thing. What did they get for their tax credits? Jobs, taxes, opportunities…
“or perhaps did you mean that they were given tax credits?”
Relevant point. Do you know which it is? (I don’t)
Primarily tax breaks and if I recall correctly a road. http://www.rubbernews.com/article/20120210/NEWS/302109996/s-c-county-offers-incentives-to-michelin
And who makes up the difference in funding the utilities (i.e.,water & sewer) – not to mention fees in lieu of “taxes”
The individual homeowner——that’s who
Spartanburg just tacked another 5 dollars for the landfill ‘fee” from 10 bucks per property owner to $15 and more than likely the county road “fee” will be going up in the near future and that’s for every fucking vehicle you own.
“Fee” my hillbilly ass—– just try to get your registration/tag without paying the “fee” or removing the landfill ‘fee” from your personal property taxes even if you pay a private garbage service to pick up your garbage and the “fee’ is factored into your monthly bill
Incentives my hillbilly ass!!!!!!!!!!!
The real answer to your “…who makes up the difference in funding the utilities (i.e.,water & sewer)…” is nobody.
If Michelin wasn’t there they’d not have any of the money at all and the tax base would be reduced with a net zero gain. at least the tax breaks gets companies to come to town and pay Bubba, Lester and Terry more than they were making at the BiLo. In turn Bubba, Lester and Terry pay more in taxes, buy more stuff (and pay taxes) and attract more businesses (who generally don’t get the incentives).
There is some validity to your complaint about the water and sewerage fees, particularly when they are heavy water users but that isn’t eh case with Michelin. As for the “dump fees” – that’s just one more easy way to stick it to you. I have a piece of property where you pay a flat fee to dump. My trailer goes through the gates stacked as deep as I can get it…
There you go….. Bubba,et al pay MORE in taxes……………….
All I’ve heard since I can remember in this state is that the more business we get the more tax base and lower taxes.
I pay more in state tax, my property taxes have gone up every cycle, not to mention the “fees” keep increasing and are more in number, “hospitality” taxes in every poduk town, utility bills NEVER decrease and yet I keep hearing this bullshit.
You do know about the rule of diminishing returns don’t you????
Well, it looks you get what you want. Michelin isn’t in business there any longer.
Wrongo on Michelin.
Now maybe this little plant might not use much water but I’ve done environmental work as a contractor at several Michelin plants and those plants use a shitload of potable water and discharge a shitload of treated wastewater………………………
Plus in Spartanburg county you pay via the “fee’ included on your property tax bill whether you dispose of a bag per month or a bag per day. And again, if you use a private garbage service they include that “fee” in their bill and you have to pay the fucking fee anyway. You’re basically subsidizing private pick-up and disposal if you are a property owner in Spartanburg County
And Spartanburg County Council is 100% Republican (to include two heavily involved with the Tea Party and bow to their every whim)
Colonel, how many times have you been told to stop destroying Wil Folks’ narrative with facts? All ills of the world can be laid at the feet of his “republicans” and in particular Haley. Can’t you understand that?
Precisely. FITS can rail against these types of tax incentives on principle, but Will should should really quit with the silly “cost to the taxpayers” nonsense. He may be convincing a few of the non-high school graduate readers here that big bags of cash are actually trading hands. As you inferred, the vast majority of these “costs” are notional. If the large businesses had not showed up, those taxes wouldn’t have been paid anyway (and neither would we have enjoyed any of the ancillary benefits of the business’ relocation here, like higher than average salaries and other spending by the business).
Meanwhile, Charleston is going to start choking to death on its own greed.
This is the cost of $1.78 per gallon oil. That and the QE bubbles are drifting up to the surface as recessionary foam. Who knew printing more money was not the answer!?
Delusional much?
List of SC tire companies.
http://columbiametro.com/Columbia-Metro/April-2013/Is-South-Carolina-the-Next-Tire-Capital-of-the-United-States/
Interesting find.
Well, then, you would expect South Carolina House members and Senators to vote for the highway bill and infrastructure spending – if they have half a brain – wouldn’t you?
Who suffers from the loss of the Export-Import Bank? South Carolina workers. The owners of Caterpillar and Michelin will get along just fine.
http://www.wsj.com/articles/BL-WB-46903
Oh No! You are upsetting Folks and his economic theory.
Libertarians don’t have ‘economic theory’. They just have bullshit.
That pic of Woody Allen and his wife/daughter is creeping me out
Bridgestone just completed a huge expansion in Graniteville for off-road equipment tires.
TRANSLATION: keep electing scum like Obama and RINO Joe Wilson and you and yo mama can stay on welfare for three more generations
That’s right–RINO Joe rips down your flag–gives Obama fast-track–votes for FELLOW RINO Boehner to make us a third-world nation !!!