Otis Indiana Plant: Latest Casuality of China and Mexico

Pressures to produce abroad are mounting as our economy kicks into high gear. Here is a story of another manufacturing loss...not to just China, but Mexico as well.

Otis Elevator plans to end its manufacturing operations in Bloomington, Indiana by the end of next year, leaving about 200 jobs at a plant that once employed more than 1,000. The company said it would eliminate all factory, distribution and field-tool operations in Bloomington by the end of 2004.

About 18 percent of the products made in Bloomington will be shifted to an Otis plant in China. Production of low-rise elevator components already had been shifted to a plant in Nogales, Mexico, and other outside suppliers.

Linda Williamson, president of the Bloomington Economic Development Corp., called the move "disappointing." "Otis’ decision to move production out of Bloomington is really a decision to move production out of the United States and is based on global considerations and not on the productivity and quality of their local work force," she said.

Otis Elevator, with headquarters in Farmington, Conn., is a subsidiary of United Technologies. It is the world’s largest company manufacturing, installing and servicing elevators, escalators, moving walkways and shuttle systems.

I have one suggestion. Maybe CoreNet Global should host a conference to discuss some new ideas on how manufacturers can increase competitiveness by producing domestically. What would it REALLY take to overcome the cost advantages offered by offshore locations? This is about the search for true innovations and not just fixing old solutions.

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