I'm a Prent Corporation mini-shifter and I don't think my wage is especially low. I receive paid holidays which I consider a benefit, also profit sharing. It would not be good to change mini-shift to full time as the jobs are extremely boring and it's a very warm environment. Yes, we are mostly women employed on the mini-shift but some workers want just part time employment so it fills that desire.

TCB:
The two biggest solutions to the weak dollar are:
1: You stop this INSANE deficit spending that is exploding every year, with no end in sight. The more money we borrow and or print, the weaker the dollar becomes, unless you have mass GDP growth to counter balance it. It is rather ironic to hear some of the liberals on these forums now defend these huge deficits. Of course; they are the same people who offered that up as one of the biggest criticism of Bush, and Reagan (and to some extent, rightfully so)

2. You get rid of this ridiculous "free money" policy that we now have with 0% interest rates from the fed. You now have banks simply making carry trades (borrowing money at 0%, and simply putting it in short term instruments to make a couple % profit for doing NOTHING. Notice the banks are not loaning $$$ out, yet they are all making record profits? of course profit is never "real" if nothing is ever produced.)
Free money policies are the formula to create BUBBLES! That is what happened when Greenspan cut interest rates to near 0 (.75%) back in the late 90's when he feared a recession coming. Well, he averted the recession by keeping the rates that insanely low, yes, but the policy would spur an even bigger problem in the huge bubble it would create in housing, real estate, and commodity markets. A bubble that would of course all come crashing down a few years later, and take most all segments of the economy with it.
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This current free $$$ policy, along with unheard of deficit spending, is all ready taking the US dollar to unprecedented levels of weakness, and instability. A weak dollar has some benefits indeed, but the real problem comes when it's unstable. No country has prosperity, and world investor confidence when the currency becomes unstable. Ideally you want a strong and more importantly STABLE dollar for economic prosperity. That was the policy of the 80's and 90's.
God only knows where we may be heading now. You are in uncharted territory. This free money policy has people just throwing $$$ everywhere now. Anything you currently see running up huge in value, is likely the formation of yet another fed created bubble. And we all know what eventually happens to bubbles!

obviously some of you are missing the facts! The majority of prent's customers are from over seas. The shipping costs alone would probably put the company in huge debt and not have the opportunity to serve those customers. SO instead they do it right if you ask me! The build in the country that they do the most business in to save on shipping costs. It's cut and dry. One person stated they make the packaging for X-BOX controlors. How many AMERICAN homes have X-Boxes? ALOT! and where were those made?? CHINA! (I THINK) =) .... BUT my point is it's okay for us to own the product which benefits the country we buy from but it's not okay for us to build a facility there? It's the other countries who are technically outsourcing. China is outsourcing to (Prent) to make packaging... the shipping cost is crazy so Prent sees a profit in having China as a client so they build a place in China and the place pays for itself I'm sure vs. the shipping costs. 5000 pieces of whatever at $300 each would be $1500000 just in shipping costs.... the buildings closer to the source makes total sense to me. And in turn- makes sense why Goex is in business too- they make the plastic that prent thermoforms. So Joe doesn't outsource his company at all....it's genius if you ask me... he outsources the needed product to the other countries. Let's face facts; China will probably always be the #1 electronic manufactoring company so why not profit off of their products as well. And whoevere said Prent doesn't offer profit sharing you are full of it! They do and it's a fact because my husband too works there and I'm proud everyday that he does! Joe runs a great company and he lets it be known if you don't want to work then you won't be working for him.

Kawisixer01,

Rebuilding the manufacturing sector in Janesville is a waste. Manufacturing in this country is on the decline. If you want to improve the local economy, you need to attract more white collar jobs. Otherwise you are going to continue to lose all your young, freshly educated people to places like Madison, Milwaukee, Chicago, or any other big city where they have more opportunities.

kawi,

Prent chooses to "staff their plant" with people who want to work. It really is a simple human resources strategy. Hire people who want to work.

Is this a strategy to contribute to the rebuilding of Janesvilles manufacturing sector? Since Prent has been in Janesville for 40 years, yes, I think so.

However, if you think differently; I am certain nothing is stopping you from raising capital (including using your own), luring away Prents work force, and creating high paying local manufacturing positions. You might even let your new work force start a union! There is nothing stopping you. Afterall you've exposed Prent for what it really is....a local employer who does not know what they are really doing and one who is missing the great opportunities here in the USA.

Just think once you offer 40+ hour work weeks and full benefits (including health care) and profit sharing (cause its easy to make a profit in this industry)...you just might consider selling this new venture to a private equity group who may move your operation overseas.....

I do not believe there is a single employee that is forced to work at Prent. I believe every single employee chooses to work there.

They have full time people, my husband works full time and has benefits obviously you don't know it all kawi, yes they do have mini shifters but not so they don't have to pay benefits. Oh and my husband makes a good wage also, so if you don't know what you are talking about keep you mouth shut!!!!!!

Boy Prent sure is great for our local economy....they employ mostly mini-shift people with low wages and no benefits. They choose to staff their plant with mostly retirees, students, and busy mothers so that they don't have have full time (40 hour) schedules and therefore don't have to offer any benefits to the majority of their workforce short of profit sharing. Sounds like the type of corporation that is really going to contribute to the rebuilding of Janesville's manufacturing sector.

my husband works at Prent he has worked there for over 15 yrs. Prent is a good place to work and Joe cares about his employees. It is easy for people to ASSUME things about Joe and Prent Corp that they know nothing about. Just because Prent has plants all over the world DOESN'T mean the Janesville plant is closing. Some of you people need to get a life!!!!!!!

Kiowa,

What is your solution for the weak dollar?

TCB.

displaced worker,

The leadership at prent or any other company primary objective is to earn a profit-a return on its invested capital. When Prent leaves will I eat crow? No. I dont pretned to know what Prents strategic direction is. Yes, many customers are located overseas, hell if I were Pregont I would relocate the company to a better climate-simply for quality of life. Obviously there is a long rich history of Prent in Janesville but its wholly presumptuous of you to assume that it will be there forever. Things change. Ask the employees of GM or Parker Pen.

As for displaced workers-invest in yourself. Make yourself more marketable and valuable. When unskilled labor goes overseas its because it make business sense to do it-not because business owners ar inherently evil. Business leaders often have to make tough decisions which impact not only the employee but extended families as well. But at the end of the day-you do what is right for the business.

BTW, pregnont does not have a crystal ball. China NEEDS to grow at 8-9% per year in order to avoid a deep recession like we see in the united states. Nothing is wrong with investing in the united states-open your eyes there is a huge global economy outside of our borders. You ask what is wrong with believing that AMerica will grow significantly faster than China or Europe? First is FACTUALLY inaccurate-not gunna happen. Segments of the US economy will grow-sure-this segment? I dont know. The US economy is in recession. Overall GDP is not growing---its contracting. Yes, the US economy is the largest economy in the world-and it is currently shrinking. China on the other hand is growing at about 8% per year. Remember the halcyon days of Bill Clinton? Avg. 2.4% economic growth in the USA. Or under Bush (post 9-11) 4% growth inthe US. Put simply the chinese economy is growing faster. You fish where the fish are.

Just to clarify; none of my postings are anti Prent. I'm happy to hear that the company is doing well, and that 300 jobs seem to be safe in Janesville. My only point was that this insane weak dollar policy our country has gone to just INVITES business to move over seas to produce their products.. I will never blame a business for doing what is in their best interest to expand, and succeed. I will, however; blame the policy makers who make bad economic policy that makes it very attractive, if not INVITES, companies to adapt to their bad policy by moving over seas, to enhance their profit.

As an ex employee, let me try and explain what is going on at Prent. They make packaging for products, in both the medical and electronic industry ( examples - your X-box controller and Nicoderm patches come in packages made by Prent)
Now, All those electronics made in China need packaging, but for Prent to manufacture it here, and ship it there would price the packaging sky high.
So Prent expands to be close to the product source.
All the packaging is designed and the tools ( and even the machines) are made here in Janesville, then shipped to China, Malaysia, and the other locations.

If Prent chose to remain here only, they would not be as big as they are now, as other companies would be making those products.

Some of you are making a huge assumption that Prent can even be competitve exporting from the U.S. The fact is, you don't know. It's entirely possible that the only way to be competitive in those foreign markets is to set up shop there. The U.S. operations are not harmed if they never exported from the U.S. to those foreign markets to begin with.

Wow, some of you folks are really jaded. Prent is not reducing the U.S. workforce. They are simply expanding into other markets.

displacedworker, you seem to lack a simple understanding of supply and demand. "Investing" in your U.S. operations will not create more demand for your product than the U.S. market supplies. Even with a week dollar, there are costs associated with exporting from the U.S. that can make a product uncompetitive in a foreign market, compared to a local competitor in that market. Besides the obvious higher shipping costs, shipping can add weeks to lead times, compared to a local manufacturer. No amount of local "investment" can reduce that shipping time.

displacedworker:
EXCELLENT post!
That was pretty much what I was eluding to in my initial, and admittedly superficial post, about the dollar.
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Our points can be further illustrated by asking the obvious question? If a weak US dollar is so great for this economy because of it's beneficial aspects to exporters, then why would a company like Prent not just make ALL products here, and export them to over seas buyers? Obviously because there is much more profit in simply setting up shop over seas. You have the less expensive labor aspect; as you exquisitely detailed, and then you have the profits enhanced even further by the weak dollar. Say for instance my ABC company has a 10% profit margin, and I do $10 million in sales annually. So my ABC company makes $1 million in net profit. Seeing that I can make much more profit under the current business conditions, I decide to move my entire manufacturing operation to say, India. Not only will my production costs decrease dramatically with cheaper labor, but lets just say they remained exactly the same..That my profit margin was the same 10%, labor costs, and everything was the same as I had it in the US. So I make the same 10% profit, only that it is in Indian Rupees. I then convert my Rupees to US dollars (which just happens to have has fallen 20% or so in the past 6 months alone, and keeps falling), and wallah, I compound my profits even further by the weakening dollar.
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It's really a serious issue we are facing here. And I totally agree with you that it's INSANE policy that not only CEO's, but our elected representatives are now relying on this ridiculous notion that Asia, and the developing world, will save our own weak economy. I say enact a strong dollar policy, that promotes US companies to buy US products, and invest in a US labor force.
I can keep dreaming anyway!

You are correct that a weak dollar is GOOD for exporters, and it's WHY you see companies like Apple, IMB, Caterpillar, ext (and Prent on a smaller scale; as detailed in this article) who have LOTS of international exposure, are doing so well of recent.
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Unfortunately we have huge trade gap with many countries, and we are importing a lot more then exporting with many partners. All of which is very bad with a weak dollar. Not to mention that it just gives incentive for companies to mover over seas, and boost profits further from the exchange rate. I will take the strong (but not overly strong) dollar policy of the Reagan 80's and Clinton 90's ANY day of the weak, over this debacle we have now, that is only going to get worse!

Janesvilliean:
Yes; I am well aware how the currancy markets work...
My point is that many companies will simply move their operation out of the country because the profits you make in another country then become MORE because when you make money in that country and convert it back to dollars, you inherently make even MORE profit on the currency exchange when the dollar is weak. It's really not to complex..the CEO of Alcoa just recently commented about this. Basically saying that they will be stepping up their operations, and hiring more people, but NOT in the US. All because they make a lot more producing aluminum in another country, and those profits get a huge boost when converted to US dollars, when the currency is weak.

localboy,

Yes I read your comment. Its my opinion that you are bitter or jealous, verging on the point that you demand Prent Corp to do more for its employees-because "you and I know its only a matter of time".... We really dont know. At least I dont have the slightest idea what is next-but the firm seems to be in good hands with its current leadership. It has a long history in Janesville and should be celebrated.

Explain what you meant by "parted out"? Are the company's parts worth much more than the firm in aggregate? I believe this is a privately held entity. Is it Joe Pregont's invested capital to lose should things go south? Or is this firm an employee owned company? Should Pregont have the ability to sell his company to the highest bidder? Absolutely. Pregont owes no explaination of his strategic intent to you or I, maybe his board of directors (if he has one).

I see that you are willing to give unsolisted advice to "diversify into other projects in North America"..this advice is based on what market research? Prent is a global company and they will seek to serve and gain a competitive advantage in the markets they believe hold the most potential. Is it your advice to expand to Canada? Is this what you mean by North AMerica? Perhaps its north Rock county? Further expand in the United States? Where is the hot bed of manufacturing? Hint, its not in the United States.

Prent's global focus is to serve it's customers where it cannot reach from the United States due to shipping costs, tariffs. Because of those added costs it cannot compete with thermoformer native to those countries. It does not outsource jobs to these countries.

Understand I do not speak for Prent Corporation or Joe Pregont. I'm simply stating facts.

It's GROWTH people. Quit complaining and go find a job.

TCB, are you reading the same comment I wrote? I think you are confused. Eitherway, read my post and mark my words.

Well put TCB

Until all of Prent's many US customers leave the country causing Prent to dry up here, you can all stop whining about losing jobs. This is GROWTH, plain and simple.

Prent should be applauded for remaining in Janesville. Prent could relocate to another location where the premium for labor is lower and where the political climate is more business friendly-they dont, they choose to remain in Wisconsin.

It appears as if Prent is doing the right things and strategically aligning in the right markets. Ultimately this bodes well for the Janesville economy. 300 local jobs contributing to the local economy in many ways.

Its interesting that those who complain about Prents willingness to expand globally feel they are the most threatened with Prents success. localboy, displacedworker, and kiowa need to look in the mirror and ask what can they do personally so that companies like prent see the value in hiring them. This fairytale that "jobs need to stay here" some how will make the dismal janesville economic climate any better is laughable. Its a global economy and Prent happens to be a local business-that competes globally.

Unless I read the article wrong this was about Prent EXPANDING into Europe not MOVING to Europe.

What is a millin American, is that like a Mexican American?

"this could be good news for one local company not mentioned in the article. goex corporation could pick up business since they make plastic sheet for prent to thermoform."

The U.S. exports billions of dollars to other countries that employ millins of Americans. This is something they do not tell you.

Sorry. A weak dollar is better for exporting industries (they can buy more of our stuff). A strong dollar is better for, say, Wal-Mart and China (we can buy more of their stuff). Some want this terminology changed because it confuses people into thinking "strong" is good. It is for certain parts of the economy, but it definitely is not good for domestic manufacturers who want to sell abroad.

The funny thing about keeping the dollar strong, means that its too expensive for other countries to buy stuff we make. I am not against a strong dollar, but keep in mind that China keeps their currency artificially weak. To add to this, and on a positive note, with our dollar a little weaker today then it was, our exports have risen, because it is more economical for other countries to buy our goods then before. Just remember there are always two sides to every story.

-Adam

this could be good news for one local company not mentioned in the article. goex corporation could pick up business since they make plastic sheet for prent to thermoform.

I am torn when I read stories like this. Joe's job is to make money which in turn, keeps Prent's balance sheet healthy. If their balance sheet is healthy, Prent can provide jobs around here. However, you can see the migration pattern, and it is pointing to more work moving away to the markets they serve. If Prent was taking the economic savings and diversifying into other projects for North America, and Prent was "expanding" here in Janesville, that would be a cause for celebration. I hope Prent the best, and I hope it can provide career long employment opportunities for Janesville area residents, but you and I know that it is only time before they are sold to a private investment company to be "parted out" for more money then the purchase investment......

Another story that shows the effects of a sinking dollar, and how it causes jobs to be out sourced. For all the idiotic talk you hear about NAFTA, CAFTA, and trade deals, no one seems to see the real problem is the dollar. The best protection for US jobs to stay in the us is a STRONG DOLLAR!