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Rule pumps to be made in Mexico!

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Rule pumps to be made in Mexico!

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Old 06-02-2009, 10:08 PM
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Default Rule pumps to be made in Mexico!

A few of my friends are loosing their jobs to Mexico!!!!
From the Gloucester Daily Times:


ITT Rule Industries, the West Gloucester company that revolutionized the bilge pump and became a leading marine equipment manufacturer and innovator from its home in Cape Ann Industrial Park, is moving its production line to Mexico, its corporate parent announced yesterday.
The move will result in the loss of 87 local jobs at a time of rising unemployment throughout the state and tough times for Cape Ann's other large industrial businesses.
The recession and collapse of the recreational boat market forced ITT, the international conglomerate that bought Rule in 1998, to consolidate production of all of its marine and recreational vehicle equipment to a plant in the city of Chihuahua in north central Mexico, a company spokesman said.
"This decision does not reflect the quality of the workforce," Tom Glover of ITT said yesterday. "This will allow us to remain competitive long term."
"All of our competitors are manufacturing in China and Mexico," he added.
Forty-eight white-collar workers in marketing, administration, finance, human resources, engineering and customer service will be retained at the Kondelin Road facility, which is owned by ITT, Glover said.
Cuts to the local work force will be phased in, Glover said, starting in August and accelerating through the fall, until all manufacturing is halted by the end of 2009.
Rule Industries began in the Beverly Farms garage of founder Clinton Rule, a self-described "crackpot inventor" whose struggle with a leaky boat inspired him to develop a new bilge pump design that would come to lead the world market.
In the 1970s, Rule expanded into design and production of a number of different marine products, including saws, paint, anchors and electronics. Rule also owned the historic Paint Factory for a period of time after acquiring it in 1979.
After Rule sold the company, it passed through the hands of a number of owners before landing with ITT — the engineering and manufacturing giant based in White Plains, N.Y., with multiple businesses related to managing the flow of liquids, from wastewater to ocean water. The company has $11 billion in annual sales.
Under ITT control, Gloucester's Rule factory developed not only pumps, but winches, toilets and compasses.
Innovations developed at the plant allowed the company to produce compasses, marketed under the Danforth brand, that could be used all over the world without dipping and shaking when they experience large changes in latitude and global position.
It was quiet at the Rule factory parking lot yesterday afternoon, with only a few employees heading home for the day and fewer interested in discussing the future closing.
"It's just one of those economic things," a man said before he got in his truck.
Glover said the performance of ITT's marine businesses has been "reflective of the overall business downturn" and sales of equipment to boat builders and retail are both down.
The plant in Chihuahua — some 300 miles south of El Paso, Texas, on the Rio Grande River, and perhaps best known for the dog that bears its name and as home of famed Mexican bandit and revolutionary Pancho Villa — will handle the production of all of the marine products that had been made in Gloucester, Glover said.
"It is a bad day for Gloucester," said former Mayor John Bell, who worked with Rule officials for years to keep the company in Gloucester and to encourage it to expand its business. "Gloucester people and the genius of Clint Rule built the Rule brand. People who have been touched by Rule in Gloucester will be devastated."
Bell said that, over the last several years he had been talking with Rule officials, and the facility had been "in limbo," with questions circling about ITT's vision for the facility and how it would fare in ongoing rounds of consolidation.
"It is part of the downside of being part of a large global company that thinks globally, not locally," Bell said. "It was a good run in Gloucester."
Patrick Anderson can be reached at [email protected],
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Old 06-03-2009, 01:55 AM
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Well you can cross Rule off of the list of quality parts to put
on your boat. My company gets a fair amount of sub-assemblies
that are made in Mexico, and you wouldn't believe the crap that
shows up sometimes. I hope their engineers and buyers like Mexican
food, cause they're going to be spending some time down there trying
to fix all of the problems they are about to have. What else can you
expect from an uneducated workforce that works for pennies?
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Old 06-03-2009, 02:39 AM
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Do not want to support a company that out scources their product to another country to save a damn buck or two when alot of Americans are hurting and need a job, esp now-a-days. Guess I can cross RULE products off my list and hope others will do the same. Thats Fouled up for sure.
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Old 06-03-2009, 03:58 AM
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Who makes(MADE) a better bilge pump than rule? I've used their pumps for years. I think most everyone has. Where do we go now?
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Old 06-03-2009, 04:47 AM
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Originally Posted by north coast View Post
Who makes(MADE) a better bilge pump than rule? I've used their pumps for years. I think most everyone has. Where do we go now?
Try Lovett
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Old 06-03-2009, 04:57 AM
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Originally Posted by shadco View Post
Try Lovett

America, Love it or Shove it.


Might as well boycott all ITT products for what they did.


I just bought a Rule pump. Wish I read this yesterday.


.
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Old 06-03-2009, 05:19 AM
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where are the Johnson pumps made?
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Old 06-03-2009, 12:34 PM
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I am involved in the manufacturing business and I fully understand the position Rule Pumps now finds itself. One of my customers just moved a product that I manufactured for them to China - saving them $1.80 per part. My cost to them was $4.10 - they now get it for $2.30. On 100,000 parts each year, they just saved $180,000. I don't like it, but I fully understand the logic. Rule has evidently been putting this move off for a couple of years - they are probably now forced with the decision of moving or going out of business. I don't know how many business owners would have chosen to go out of business instead of moving to Mexico. They WILL have manufacturing problems and shipping delays. I have had a number of products made outside the US and always with problems. I now get everything made in the US, with the exception of 2,000,000 screws I buy from Taiwan (and it took a lot of trial and error to get the quality screw I needed). A small increase in production cost equates to a large increase in retail price. I am currently investigating getting some products made in China (cut and sew) and the pricing difference between china and the US, using the exact same materials is a little over 2 to 1, US cost to China cost. You have to have a damn loyal bunch of customers to stomach that kind of difference in price (retail price difference will be much greater than 2 to 1). We have not seen the end of this manufacturing move out of the US yet. The current political environment is not favorable for US manufacturing investment. Many business owners perceive (whether true or not) that taxes may increase and increased medical insurance expenses may be forthcoming. Many business owners are hesitant to invest further in a US based business, instead preferring to take the risk with overseas logistics at the expense of suffering increased US Govt regulation and intervention. I have had a number of plastic injection molds, zinc diecast molds, and metal stamping tools made here in the US. I just visited a machinist who has made several molds for me in years past, and he told me he had not built a mold in two years (his shop used to build 20 to 30 molds per year). He told me all his business now is the repair of foreign made tools that have been purchased to run in the US and they break down all the time, giving him plenty of business. He has adjusted and is actually doing quite well and I intend on doing the same.
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Old 06-03-2009, 12:47 PM
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Sorry to hear that it will effect your business but frankly, after 2 bilge switches and one Auto 2000 failed on me afer only 7 months, I wonder if it can get any worse from a consumer quality standpoint???

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Old 06-03-2009, 12:55 PM
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Rule should have made a premium line and a budget line and moved the budget line to Mexico to compete with cheap products.

There are a lot of folks willing to pay for American quality.

Bruce
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Old 06-03-2009, 01:14 PM
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I would say that's fine....but it is not fine. I will never have another Rule pump.
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Old 06-03-2009, 05:36 PM
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There are alot of good quality people working at Rule. My buddy's girlfriend has been there for over 16 years and she's devistated. In a city of 30,000 that's already hurt by the slow down in the fishing industry....this stings!
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Old 06-03-2009, 06:57 PM
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Just the sweat jobs moved to Mexico to save the USA engineeres, marketing personel and board of directors.

They will now have more competive pricing that might help their company to grow.

Oh and by the way, my uneducated Mexican son scored over 1500 on his SAT's and got a academic scholarship to USCB engineering.
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Old 06-03-2009, 07:10 PM
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I wonder when they will start offering free shipping. Just give a few to each illegal planning to make the trip. Wait, nevermind, they probably don't want to flood the market and drive prices down.
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Old 06-03-2009, 07:23 PM
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I have always thought that Rule had poor quality, just not much competition out there.
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Old 06-03-2009, 08:03 PM
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With the unions and government regulation I am surprised that anybody manufactures anything in Massachusetts.

You cannot keep adding costs and restrictions and expect a business to survive. My Panasonic Plasma TV was made in Mexico and it has been absolutely flawless for 3 years.

I will still buy Rule pumps.
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Old 06-03-2009, 08:43 PM
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Hey Jay you beat me to writing this post. I was going to post it but have been tied up the past few days. just came on to post and seen yours! Sucks to lose this local plant. My mother in law took a voulenteer lay off when talks of this began several months back. It was a tough decision for her but now she's glad and knows she made the right choice. She got a great severants package (6 months pay plus unemployment) which sadly current employee's will not see.
Glad to see another Gloucester boy on this site.
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Old 06-03-2009, 10:30 PM
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There are alot of good quality people working at Rule.

I wonder how many voted for 'change'. Not throwing rocks, just wondering.

.. and got a academic scholarship to USCB engineering.

Bet he doesn't end up working on an assembly line, either, which is where lousy quality originates. Maybe he'll come back home instead of staying where the real engineering money is ...
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Old 06-04-2009, 06:06 AM
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Originally Posted by aqua205 View Post
Rule should have made a premium line and a budget line and moved the budget line to Mexico to compete with cheap products.

There are a lot of folks willing to pay for American quality.

Bruce
I go out of my way to find American built product. That was why I bought 2 rule pumps in the last 6 months. If they build quality they will have substantial business.
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Old 06-04-2009, 12:06 PM
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Originally Posted by Curmudgeon View Post
There are alot of good quality people working at Rule.

I wonder how many voted for 'change'. Not throwing rocks, just wondering.

.. and got a academic scholarship to USCB engineering.

Bet he doesn't end up working on an assembly line, either, which is where lousy quality originates. Maybe he'll come back home instead of staying where the real engineering money is ...
In any business, you have to have quality control. Mexicans have done a good job in the states and in Mexico when these guidelines are enforced, and most of the american cars are now assembled there.

The point is that everyone in MA didn't lose their job and to me that is better than a total loss.

And yes, I hope my son can land a good engineering job in the states. But even engineering is being outsourced to other countries. One of my clients contracts over 500 engineers out of Calcutta. There, graduate engineers are making $5300 a year gross.

Scary
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