Posted on Oct 27, 2022
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Case Study of the downfall of American manufacturing and its origins in the late 1950s (company history provided below). Pay attention to the numbers and the players (the three executives and the accountant). Furthermore, this business history, provided by White Consolidated Industries, exposes an underlying connection with DC politics. Notice that the original company employed over 600 employees in Cleveland. After acquiring 5 other Cleveland manufacturers, they only employ 70 people at their corporate base, all manufacturing having ceased there. After acquiring the Kelvinator Appliance Div. of American Motors and the Appliance Division of Westinghouse, the company was later merged with a Swedish company during the European expansion into the US Economy in the 80s.
I will posit to y'all le raison behind this American manufacturing downfall, as written in a slightly more in-depth company history. https://www.company-histories.com/White-Consolidated-Industries-Inc-Company-History.html The evidence is quite clear. The key players for the distribution of wealth to foreign lands in a time of great prosperity, were not just greedy executives with ulterior motives, but major elements of our own US Government. Remember, the US government, that now considered itself a world super power and self-aggrandized as the World Police, believed itself obligated to the rebuilding and prosperity of all the nations affected by World War Two. Stopping the "Red Menace" was only a factor, not the purpose.
"During World War II, like many U.S. companies, White turned over its manufacturing for the purpose of producing goods to aid the war effort. Production was high enough to necessitate a move to a bigger plant in 1949. A new administration building was completed in 1951.
The world was a changed place by then, as a strong demand for consumer goods ensued. While White had improved its production methods significantly, and 2,000 machines were rolling forth a day, imported machines from Germany, Italy, and Japan, had begun to swamp the U.S. market, and it was becoming impossible to compete with their prices. In fact, White spent on materials alone what a finished, imported sewing machine cost in the United States. Even though the company had a hearty $20 million in sales in 1954, it reported a $440,667 net loss and had been on an earning slide for the past six years. In such a changing industry, and world, White could no longer afford to remain a one-product company. When Sears, which represented 40 percent of White's business in the early 1950s, gave its manufacturing contract to the Japanese, the company fully realized the need to diversify. "
Today, we see the spoiled fruits of this decades long endeavor. The global focus of the US Government now aligned with that of the UN's push for global equalization. American manufacturing might has become merely a myth. Even nations that were not actively part of, or negatively impacted, by World War Two, like Mexico, have taken the lion's share of US manufacturing. Mexico being second only to China in this facet. Mexico poses a greater threat by holding the vast majority of American food production with most US agricultural production within their borders, to controlling interests of US corporate farming and food production companies, let alone, their CITIZENS providing a titanic amount of agricultural and food industry workers. As of 2013, Congress repealed the COOL legislation out of the Farm Bill and the USMCA signed by President Trump, open the door wide open for Mexico...and to a lesser extent, Canada...to the US Ranching industry. All of this spells disaster to the bona fide interests of National Security. That is not even taking into account of the incursion of China and Saudi Arabia into US Energy production.
WHITE CONSOLIDATED INDUSTRIES, INC.
WHITE CONSOLIDATED INDUSTRIES, INC., a diversified conglomerate, was originally founded by THOS. H. WHITE as the White Mfg. Co. in 1866. Ten years later it was known as White Sewing Machine Co., with 600 employees producing the White Rotary Bobbin sewing machine in a 5-story factory on Canal St. Sales at the company reached $2.5 million by 1878. Under the control of White's sons, ROLLIN, Windsor, and Walter, the company diversified, making automatic lathes, screw machines, roller skates, bicycles, kerosene lamps, and White cars and trucks by 1903. Although Thos. White discounted the popularity of cars, his sons thought otherwise and organized the White Motor Car Co. in 1906 (see WHITE MOTOR CORP.). White Sewing Machine again concentrated on its original product. In 1924, White contracted with Sears to supply its private label machines, a move which assured a steady business. Over the next two years, White Sewing Machine acquired the Domestic and King Sewing Machine Cos. and the THEODORE KUNDTZ CO., moving into the Kundtz plant at 2120 Elm. The firm remained there until 1949, when it relocated to a new plant and headquarters at 11770 Berea Rd. With sales averaging nearly $20 million a year, White remained a single product company in 1954. At that time the firm came under increased competition with imported sewing machines that begun to flood the U.S. market.
The company was revolutionized in 1956 when three White Motor Co. executives, led by Edward Reddig, joined White Sewing Machine. Rather than attempt to fight the cheaper imports, Reddig's team soon discarded White's domestic sewing machine production and reorganized the company as a sewing-machine importer, arranging to have machines made abroad to its specification. The company embarked on a program of acquisitions in the 1960s, which included Apex Electrical Mfg. Co., Strong, Carlisle & Hammond, HUPP CORP., and the LEES-BRADNER CO., all of Cleveland. During this time, White also acquired the Kelvinator Appliance Div. of American Motors and the Appliance Division of Westinghouse. These purchases created a company that was profitable, diversified, and integrated, in the sense of having complementary product lines. To reflect this shift, the company became White Consolidated Industries in 1964.
The former White Motor Corp. executives, now with White Consolidated, proposed two failed attempts to merge with White Motor in 1970 and in 1976. The 1970 merger was prevented by the Justice Dept. on the grounds that the new corporation would have a monopoly in the farm market. The 1976 proposal was voted down by White Consolidated's board, as White Motor, responding to an ailing domestic automobile and truck market in the U.S., was failing badly at the time. White Motor eventually closed its doors for good in 1985, and while the fortunes were grim for the automaker, the same could not be said for White Consolidated Industries. Judicious acquisition and streamlined operations in the years 1975-85 increased sales from $1.2 billion to more than $2 billion. White Consolidated merged with AB Electrolux of Sweden in March 1986. In 1995, White operated in 45 states, Canada, and Mexico, and employed 70 people locally. At that time, White had three divisions in commercial appliances, home products, and industrial equipment. Of the three, the home products division was by far the largest. In 1995, White Consolidated Industries acquired the appliance divisions of the Westinghouse Electric Corp. In 1997 AB Electrolux sold off its global sewing business, including that portion run by White, thus ending the company's long involvement in this area. In 2005, White Consolidated Industries remained a part of AB Electrolux.
White Consolidated Industries, Inc. Records, WRHS.
I will posit to y'all le raison behind this American manufacturing downfall, as written in a slightly more in-depth company history. https://www.company-histories.com/White-Consolidated-Industries-Inc-Company-History.html The evidence is quite clear. The key players for the distribution of wealth to foreign lands in a time of great prosperity, were not just greedy executives with ulterior motives, but major elements of our own US Government. Remember, the US government, that now considered itself a world super power and self-aggrandized as the World Police, believed itself obligated to the rebuilding and prosperity of all the nations affected by World War Two. Stopping the "Red Menace" was only a factor, not the purpose.
"During World War II, like many U.S. companies, White turned over its manufacturing for the purpose of producing goods to aid the war effort. Production was high enough to necessitate a move to a bigger plant in 1949. A new administration building was completed in 1951.
The world was a changed place by then, as a strong demand for consumer goods ensued. While White had improved its production methods significantly, and 2,000 machines were rolling forth a day, imported machines from Germany, Italy, and Japan, had begun to swamp the U.S. market, and it was becoming impossible to compete with their prices. In fact, White spent on materials alone what a finished, imported sewing machine cost in the United States. Even though the company had a hearty $20 million in sales in 1954, it reported a $440,667 net loss and had been on an earning slide for the past six years. In such a changing industry, and world, White could no longer afford to remain a one-product company. When Sears, which represented 40 percent of White's business in the early 1950s, gave its manufacturing contract to the Japanese, the company fully realized the need to diversify. "
Today, we see the spoiled fruits of this decades long endeavor. The global focus of the US Government now aligned with that of the UN's push for global equalization. American manufacturing might has become merely a myth. Even nations that were not actively part of, or negatively impacted, by World War Two, like Mexico, have taken the lion's share of US manufacturing. Mexico being second only to China in this facet. Mexico poses a greater threat by holding the vast majority of American food production with most US agricultural production within their borders, to controlling interests of US corporate farming and food production companies, let alone, their CITIZENS providing a titanic amount of agricultural and food industry workers. As of 2013, Congress repealed the COOL legislation out of the Farm Bill and the USMCA signed by President Trump, open the door wide open for Mexico...and to a lesser extent, Canada...to the US Ranching industry. All of this spells disaster to the bona fide interests of National Security. That is not even taking into account of the incursion of China and Saudi Arabia into US Energy production.
WHITE CONSOLIDATED INDUSTRIES, INC.
WHITE CONSOLIDATED INDUSTRIES, INC., a diversified conglomerate, was originally founded by THOS. H. WHITE as the White Mfg. Co. in 1866. Ten years later it was known as White Sewing Machine Co., with 600 employees producing the White Rotary Bobbin sewing machine in a 5-story factory on Canal St. Sales at the company reached $2.5 million by 1878. Under the control of White's sons, ROLLIN, Windsor, and Walter, the company diversified, making automatic lathes, screw machines, roller skates, bicycles, kerosene lamps, and White cars and trucks by 1903. Although Thos. White discounted the popularity of cars, his sons thought otherwise and organized the White Motor Car Co. in 1906 (see WHITE MOTOR CORP.). White Sewing Machine again concentrated on its original product. In 1924, White contracted with Sears to supply its private label machines, a move which assured a steady business. Over the next two years, White Sewing Machine acquired the Domestic and King Sewing Machine Cos. and the THEODORE KUNDTZ CO., moving into the Kundtz plant at 2120 Elm. The firm remained there until 1949, when it relocated to a new plant and headquarters at 11770 Berea Rd. With sales averaging nearly $20 million a year, White remained a single product company in 1954. At that time the firm came under increased competition with imported sewing machines that begun to flood the U.S. market.
The company was revolutionized in 1956 when three White Motor Co. executives, led by Edward Reddig, joined White Sewing Machine. Rather than attempt to fight the cheaper imports, Reddig's team soon discarded White's domestic sewing machine production and reorganized the company as a sewing-machine importer, arranging to have machines made abroad to its specification. The company embarked on a program of acquisitions in the 1960s, which included Apex Electrical Mfg. Co., Strong, Carlisle & Hammond, HUPP CORP., and the LEES-BRADNER CO., all of Cleveland. During this time, White also acquired the Kelvinator Appliance Div. of American Motors and the Appliance Division of Westinghouse. These purchases created a company that was profitable, diversified, and integrated, in the sense of having complementary product lines. To reflect this shift, the company became White Consolidated Industries in 1964.
The former White Motor Corp. executives, now with White Consolidated, proposed two failed attempts to merge with White Motor in 1970 and in 1976. The 1970 merger was prevented by the Justice Dept. on the grounds that the new corporation would have a monopoly in the farm market. The 1976 proposal was voted down by White Consolidated's board, as White Motor, responding to an ailing domestic automobile and truck market in the U.S., was failing badly at the time. White Motor eventually closed its doors for good in 1985, and while the fortunes were grim for the automaker, the same could not be said for White Consolidated Industries. Judicious acquisition and streamlined operations in the years 1975-85 increased sales from $1.2 billion to more than $2 billion. White Consolidated merged with AB Electrolux of Sweden in March 1986. In 1995, White operated in 45 states, Canada, and Mexico, and employed 70 people locally. At that time, White had three divisions in commercial appliances, home products, and industrial equipment. Of the three, the home products division was by far the largest. In 1995, White Consolidated Industries acquired the appliance divisions of the Westinghouse Electric Corp. In 1997 AB Electrolux sold off its global sewing business, including that portion run by White, thus ending the company's long involvement in this area. In 2005, White Consolidated Industries remained a part of AB Electrolux.
White Consolidated Industries, Inc. Records, WRHS.
WHITE CONSOLIDATED INDUSTRIES, INC. | Encyclopedia of Cleveland History | Case Western Reserve...
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Economy
Manufacturing
Political Organization
American History
Posted 2 y ago
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