Stoneridge

Section I details Stoneridge Portland’s internal and external operating environment.

Introduction

Stoneridge: A Multinational Corporation

Stoneridge Incorporated, a publicly traded multinational corporation with 2008 revenue of $726 million has headquarters in Warren, Ohio and 5,100 non-union employees worldwide. Stoneridge has five divisions under two reportable operating segments.

Electronics Segment:

Stoneridge Electronics North America - Wiring

Stoneridge Electronics North America – Transportation Electronics

Stoneridge Electronics Europe

Control Devices Segment:

Stoneridge Pollak

Stoneridge Hi-Stat Manufacturing

The Portland Plant is part of the Stoneridge Electronics North America – Wiring and Transportation Electronics. Therefore, the majority of the information pertains to Stoneridge Electronics North America, and the Portland manufacturing plant from this point forward

North America and Portland Overview:

Stoneridge Electronics North America has four manufacturing centers including three in Mexico and one in the U.S. twenty years ago, there were five in the U.S. and only one in Mexico. Today, Portland is the sole survivor. At one point in 2008, Portland had as many as 900 employees - 17.5% of total employed at Stoneridge. Furthermore, the Portland Plant had $195 million revenue – 27% of Stoneridge’s total! Today, there are roughly 500 employees. The typical starting wage rate for a line worker is $7.50/ hour. This rate lasts for ninety days upon which time the worker becomes full time, receives benefits such as healthcare, a 401k plan, paid holidays and an $0.80 raise.

Exodus of American Manufacturing Jobs; is there any way to stop it?

Portland remains competitive in the states even though labor costs are 5 times more than comparable Mexican operations. This can be partially explained by logistical convenience. The bulky instrument panels make transportation from Mexico to Midwest...