Good Point. We are force driven by the consumer, competition & the OEM price pressure we're constantly under to build product in China. We created this trap ourselves by enriching them to the point where it's nearly impossible to seek an alternative and now we're seeing how they are becoming more dangerous to their Pacific neighbors.
Biden says he'll create domestic jobs but I think that's a dream. His ordering that all Government vehicles be electric will take time to rotate the current ones out and you're not actually creating jobs as the replacements will be just normal attrition not additional sales/work. So this is SPIN.
There's no ability to maneuver as consumers demand low prices and they can't afford a domestic wage product so we're stuck.
We have 2 domestic plants and a 3rd we plan to open in Missouri but we still need a lower cost center to average down our total cost so because I don't like anything about China we are developing a Mexico operation. BTW we've needed 16 direct labor employees since August and so far 0 applied.
Economics 101: A Country is strong when it produces both Goods & Services and I wonder about the US because the imbalance seems pretty evident as we're now much more Service orientated that producing Goods.
States like California will never shed a tear over losing businesses, only the dying businesses will shed the tears. States like California know that even if a business closes you can just raise it's taxes retroactively and everything will be hunky-dory.
I work in the performance industry and can tell you many of the old names in the Industry either have left or in the process of leaving California.
Wages, taxes and regulations have made it difficult to do business.
The move of Edelbrock started a while ago with the passing of Vic and Cammie his daughter leaving the company. The company was sold to an investment firm.
I don’t know what their plans are but I imagine they will in time move production too. They had already sold their foundry a while back.
I had crossed paths with Vic Jr several times. He was a great guy and really loved cars.
I recall one time walking through the office at work and getting horse collared. I turned thinking it was a co worker and it was Vic. He said I love the jacket. I was wearing my Edelbrock letterman Jacket, I had no idea he was even in town.
Much of the industry is consolidating and merging into larger companies to survive as it is tough for a small company to make it today. In California it is damn difficult even for a large company to prosper.
California is no longer the bed of performance anymore. Just a few of the greats are left. I just saw Isky is 99 years old. I wonder when his time comers who will buy the company and move it too.
I have found more info. The headquarters and production is moving east. The foundry’s they still have will remain west.
With the present owners they will continue to operate and grow.
Other moves may happen in the future.
I would say that with the loss of the California owner this move was going to happen just for tax and cost of living cost. TN and MS has become a big mfg area and many of the performance companies are based there.
But Edelbrock is not going away. They will still be here.
As for investment groups they have kept about half the industry afloat. Just look at Holley and the number of companies they now own.
Same for bed covers for trucks most are owned by one company that operates them independently.