News Industry H-D: Modernize or Move

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H-D: Modernize or Move Hot

Can York, Pa., save its Harley-Davidson factory and along with it, thousands of jobs? And if not, Harley-Davidson has possibly narrowed its choices down from four sites to two.

Yvonne McAvoy
LadyMoto Content Editor

Harley Davidson Modernize or Move

With sales down more than 30 percent this year and second-quarter profits taking a plunge of 91 percent, Harley-Davidson is looking to either modernize its largest motorcycle factory located in York, Pa., or move it to another state where it can operate more efficiently. 

This possible move is not breaking news; it was announced back in May of this year.  The current buzz is due to The Motor Company recently releasing the locations of the fours areas its considering: Murfreesboro, Tenn., Shelbyville, Ind., Shelbyville, Ky. and Kansas City, Mo. The possibility of a move is becoming much more realistic as Harley- Davidson continues moving forward and exploring its options.

The facility started as the York Safe & Lock beginning in 1942, and then through the years went on to house Blaw-Knox, Naval Ordnance Depot, AMF and finally and presently, Harley-Davidson.  The current plant was established as an assembly facility in 1973 and is Harley-Davidson’s largest manufacturing facility. The facility covers more than 230 acres and has over 1.5 million square feet under roof between 42 buildings. It is one of the largest employers in that Pennsylvania community and directly employs over 2500 workers with thousands more jobs in the region indirectly supported by the plant.  

Harley spokesperson Bob Klein states an outdated facility - some of the buildings date back to World War II - and an inflexible workforce as reasons that the facility is no longer cost effective.  To remain in York, Harley would not only need to update and modernize its currently buildings, machinery and processes, but it would also need more flexibility from its’ union workers, including greater flexibility on scheduling overtime, addressing absenteeism and reassigning workers, to make the plant a competitive facility.

Harley Davidson Modernize or MoveThe factory workers are represented by the International Association of Machinists and Aerospace Workers union and an article was published on their Web site when the news of the possible move was first announced. In the article, IAM President Tom Buffenbarger stated “It’s very important to remember the history and sacrifices that IAM members at Harley-Davidson have made over the years.  We fought to rebuild this company in the early 80’s, when Harley-Davidson was flat on its back. We’re prepared to discuss measures to increase efficiencies in production but we’re not prepared to let Harley ride out this latest crisis on the backs of its workers.”  After learning the news that H-D is touring other possible sites, many York plant employees were upset and feel that Harley-Davidson is not putting enough effort into trying to keep the plant where it is.

The entire community is pulling together in an attempt to save their plant and thousands of jobs. On August 2, a local television news station, FOX43, held a “Save Our Plant Ride and Rally” at the Sovereign Bank Stadium in York where thousands of Harley- Davidson fans attended in support of keeping the plant open. Gov. Ed Rendell made an appearance at the rally and announced his plan to offer $15 million toward the construction of a new facility, as well as help with infrastructure improvements and training.  A small group then rode 500 miles to the H-D company’s main office in Milwaukee to deliver a petition with over 5000 signatures in an effort to save the plant.  The petition is still available for signing on Fox43’s website.

Just this past Monday, Gov. Rendell told reporters at a press conference that he believes that Harley-Davidson has narrowed its list of relocation sites down to two, although he did not give a reason why he believes this or where he got the information. This seems to point toward the fact that H-D is serious about its move and may be favoring this option more than saving the plant in York. 

The company plans to make a decision by the end of the year.

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