It is difficult to overstate how big this is for Wisconsin.
Taiwanese manufacturing company Foxconn will build its first U.S. factory in Wisconsin, where it expects to employ between 3,000 and 13,000 people, officials announced on Wednesday.
The $10 billion facility would initially employ 3,000 people and could expand over time to create as many as 13,000 jobs, according to a senior White House official. The jobs will pay an average salary of $53,875, plus benefits, according to the Wisconsin Economic Development Corporation.
The project is the “single largest economic development project in the history of the state of Wisconsin,” said Gov. Scott Walker, who made the announcement on Wednesday at the White House with Foxconn founder and CEO Terry Gou.
Foxconn is best known for manufacturing Apple iPhones. The Wisconsin facility will produce liquid-crystal display, or LCD panels.
Yes, there are going to be some growing pains and I’m sure that the Democrats will be sure to pee all over Wisconsin’s economic flame, but this is a historic economic boon for Wisconsin. Here are a few projections from the WEDC summary:
In addition to the 13,000 jobs directly created by Foxconn, the project is expected to create at least 22,000 indirect and induced jobs throughout the state.
Foxconn is to make $4.26 billion in supplier purchases annually, about one-third of which will be sourced within Wisconsin.
The project is expected to have at least a $7 billion annual economic impact on the state.
The project will generate an estimated $181 million in state and local tax revenues annually, including $60 million in local property taxes.
Great win for Trump and Walker!
I though you folks were all against corporate welfare and hand outs to anybody. Why the change of heart?
According to a MJS article those 13000 jobs will cost the tax payers about $231,000 each if everything goes as walker has claimed. You and I are paying for that. Why?
Nord,
This is not corporate welfare, it is well timed investment.
$181 million in annual tax revenue. Just using that alone, that will be recouped in about 17 years.
However, when you calculate the supply chain and jobs impact in the local economy the payback multiplies and estimates are: less than 5 year payback.
That is great payback.
Certainly better and a ton more sustainable than anything Obama stimulis has produced! that was corporate welfare, because it rarely produced a good ROI on investment.
If you say so. But if a proposal like this would have come up under Doyle or Obama you would have been all over it, claiming corporate welfare, uneven playing field, etc.
$231,000 per employee! How many employees could you add if somebody handed you that kind of free money? Why should you or I have to pay for that? The government should not be out deciding the winners and losers.
http://www.jsonline.com/story/news/politics/2017/07/28/foxconn-could-get-up-200-million-cash-year-state-residents-up-15-years/519687001/
If we have learned anything from Scott Walker it is that he can’t be trusted on jobs numbers. He promised twice as many jobs as he delivered in his first term.
Foxconn has a stated goal of switching their production to fully automated manufacturing facilities. I don’t know what 13,000 $50k+ employees do at a production facility that is fully automated. I bet Gov. Walker doesn’t either.
Nord,
If Doyle would have lured someone market productive like Foxconn, I would be fine with Doyle doing such a deal.
All Doyle did was subsidize a deafeated train project company that would have required tremendous taxpayer subsidy to just operate. That is subsidizing losing ideas. Nearly all the train company’s revenues would come from government. Foxconn revenues would be coming from consumers….big difference.
One is pleasing market consumers the other is outdated socialist dreck, pleasing no one.
k:
You will have to go into a little more factual detail because the following is all false:
“All Doyle did was subsidize a deafeated train project company that would have required tremendous taxpayer subsidy to just operate. That is subsidizing losing ideas. Nearly all the train company’s revenues would come from government”.
Doesn’t your version of the absolute truth have some prohibition on lying?
And the white nationalist troll barfs up some more crap.
Well, that is the first mistake. The Huffington Post and MSNBC are about an unbiased as the Urinal. There are other sources for information.
Foxconn’s factory will bring more than jobs and payroll to the area. Ancillary businesses will flourish. Estimates are about an additional $3B a year.
Foxconn’s promised plans do not always materialize so there is a risk involved. In Wisconsin, (and I think the feds, too,) businesses earn their subsidies for creating jobs. Companies have learned this when they did not hire the people they had promised and so got no money.
I do think there is a bigger picture here than arguing over the math. For years, jobs have been leaving our Country and low skill or no skill labor has been flooding in. Reversing that trend is necessary if the United States is not to become a Third World country. Whether it is a US company expanding here or a foreign company moving here, this is a good sign.
Having Foxconn invest in the heart of the Rust Belt is more than just jobs coming back to the USA, it is a beacon to the rest of the world that we are a player. Now comes the hard part. Changing our educational system so they produce (or retrain) our workforce with the skills necessary for 21st century jobs.