On Feb. 10, Carrier announced plans to relocate its Indianapolis manufacturing operations to a location near existing Carrier manufacturing facilities in Monterrey, Mexico, over the course of an estimated three-year period.
The plan has no immediate impact on jobs as the relocation would occur in phases, with work movement expected to begin in 2017 with an estimated project completion in 2019. According to an Associated Press report, the move will cost 1,400 workers their jobs.
“This move is intended to address the challenges we continue to face in a rapidly changing HVAC industry, with the continued migration of the HVAC industry to Mexico, including our suppliers and competitors, and ongoing cost and pricing pressures driven, in part, by new regulatory requirements,” said Chris Nelson, president, HVAC Systems and Services North America. “Relocating our operations to a region where we have existing infrastructure and a strong supplier base will allow us to operate more cost effectively so that we can continue to produce high-quality HVAC products that are competitively positioned while continuing to meet customer needs.”
Certain separation benefits, including continued access to the company’s Employee Scholar Program for a period of time, will be available to eligible employees. Under that program, employees may receive tuition, books, and fees at accredited institutions of higher education for up to four years.
“The decision is difficult and we recognize the impact on employees, their families, and the community. We are committed to ensuring that our employees are treated respectfully and to working closely with their representation throughout the transition,” Nelson added.