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July 09, 2005
Things that are hard to quantify
Certain things are hard to quantify, especially if you have a career and a family and making an informed comment would mean a lot of reading, research, etc. But you can have certain feelings, based on the news you do get, your personal experiences, and those of your friends and family. So if I think some things (some things that may be broad, sweeping generalizations) or have certain beliefs, like the education system in the U.S. is in trouble, that our health care situation is a mess, that a lot of the people you come in contact with in the real world on a day to day basis are grossly incompetent, maybe that is just me being an uniformed, over opinionated jerk. But then you come across a story like this:
From CBC News:Toyota to build 100,000 vehicles per year in Woodstock, Ont., starting 2008
WOODSTOCK, Ont. (CP) - Ontario workers are well-trained.
That simple explanation was cited as a main reason why Toyota turned its back on hundreds of millions of dollars in subsidies offered from several American states in favour of building a second Ontario plant.
Industry experts say Ontarians are easier and cheaper to train - helping make it more cost-efficient to train workers when the new Woodstock plant opens in 2008, 40 kilometres away from its skilled workforce in Cambridge.
"The level of the workforce in general is so high that the training program you need for people, even for people who have not worked in a Toyota plant before, is minimal compared to what you have to go through in the southeastern United States," said Gerry Fedchun, president of the Automotive Parts Manufacturers' Association, whose members will see increased business with the new plant.
Acknowledging it was the "worst-kept secret" throughout Ontario's automotive industry, Toyota confirmed months of speculation Thursday by announcing plans to build a 1,300-worker factory in the southwestern Ontario city.
"Welcome to Woodstock - that's something I've been waiting a long time to say," Ray Tanguay, president of Toyota Motor Manufacturing Canada, told hundreds gathered at a high school gymnasium.
The plant will produce the RAV-4, dubbed by some as a "mini sport-utility vehicle" that Toyota currently makes only in Japan. It plans to build 100,000 vehicles annually.
The factory will cost $800 million to build, with the federal and provincial governments kicking in $125 million of that to help cover research, training and infrastructure costs.
Several U.S. states were reportedly prepared to offer more than double that amount of subsidy. But Fedchun said much of that extra money would have been eaten away by higher training costs than are necessary for the Woodstock project.
He said Nissan and Honda have encountered difficulties getting new plants up to full production in recent years in Mississippi and Alabama due to an untrained - and often illiterate - workforce. In Alabama, trainers had to use "pictorials" to teach some illiterate workers how to use high-tech plant equipment.
"The educational level and the skill level of the people down there is so much lower than it is in Ontario," Fedchun said.
In addition to lower training costs, Canadian workers are also $4 to $5 cheaper to employ partly thanks to the taxpayer-funded health-care system in Canada, said federal Industry Minister David Emmerson.
"Most people don't think of our health-care system as being a competitive advantage," he said.
Tanguay said Toyota's decision on where to build its seventh North American plant was "not only about money."
"It's about being in the right place," he said, noting the company can rely on the expertise of experienced Cambridge workers to help get Woodstock up and running.
I first saw this mentioned on Intel Dump and now on the Daily Kos (check them both out for their comments on the story), but I just can't get over the stark realities of it, or the sickening contradiction of the states in the U.S. willing to give bigger subsidies to the companies while not properly funding education in their own states.
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