It sounded like great news when Carrier said last week that it would invest millions in the Indiana plant it decided to keep in the U.S.
The company’s deal with President-elect Donald Trump to keep a furnace plant from moving to Mexico also calls for a $16 million investment in the facility.
But that has a big down side for some of the workers in Indianapolis.
Most of that money will be invested in automation said to Greg Hayes, CEO of United Technologies, Carrier’s corporate parent. And that automation will replace some of the jobs that were just saved.
The decision to keep Carrier’s furnace manufacturing operations in the U.S. instead of moving them to Mexico will save about 800 jobs out of the 1,400 at the plant, at least in the near term. The company declined to say how many of the plants 800 remaining jobs could be lost to automation, or when.
“You can’t just blame cheap labor [outside the U.S.],” said Dan Miklovic, principal analyst with LNS research. “Certainly many of the jobs that we’ve lost, especially in more sophisticated industries, it’s not so much that they’ve been offshored, but it has been automation that replaced them. We use a lot more robots to build cars.”
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