Wednesday, February 08, 2006

Military supplier to leave McAllen

Military supplier to leave McAllen: "McALLEN - Military rations manufacturer The Wornick Co. will shift assembly operations from its longtime McAllen plant to the Cincinnati area over the next several months, a move that will likely cost 270 local jobs...."

The gist of the story is that Wornick Co. wants to keep its manufacturing and assembly plants together to improve their supply chain. What happens when you separate the two functions is that you end up with inventory tied up in trucks while in transport and have the added cost of the transport.

This is the reason we probably won't get an auto assembly plant in the Rio Grande Valley. We're too far from everything to make it cost effective to manufacture thousands and thousands of cars.

The problem with the Rio Grande Valley is that you have to drive here to get here. We're not on the way to any other regions. You don't accidentally end up here.
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