Ok…let’s just sit down and noodle on these two time periods and see what we think. Obviously there has been a lot of discussion across the national and local media and of course here at Blogging Blue about the deal Wisconsin wants to cut with Foxconn. But there are two time periods we should consider and what the implications are.

Foxconn wants to build a $10 Billion dollar plant in Wisconsin to manufacture liquid crystal displays…the screens used in a myriad of electronic devices including computers and televisions. It could take up to six years to complete the plant. IF the plant is built and it reaches its full potential of 13,000 jobs, the state of Wisconsin will pay (that’s pay…as in write a check to them) Foxconn about $2.85 Billion over fifteen years.

And IF the plant reaches it full potential and all of the financial milestones and support businesses materialize, the State Of Wisconsin will reach a break even on their investment in 25 years.

Now let’s think about this for just 90 seconds or so. They want to build screens for computers and tvs and other electronics. What does your current TV or computer monitor look like? What did it look like 10 years ago? Significantly different. What did it look like 20 years ago? Probably dramatically different.

Has anyone asked Foxconn if this factory will keep up with the thrash and turn in electronics development? If something faster, better, cheaper and more desirable pops up to replace LCDs, will the plant keep up? Or will WI all of a sudden have a huge $2.85 Billion brown field to reclaim? Has anyone asked that question?

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2 Responses to Foxconn Pay Out for 15 Years, Break Even in 25 Years

  1. AJ says:

    Good article Ed. This is not going to be a century sound building. Foxconn likely will want to tear it down, let weeds grow, and build a new one or bolt the state in 25 years tops.

    When taking a look at the best case scenario the money will be paid back in 25 years, the money is just not going to be paid back ever when realistic expectations are considered.

    Wisconsin is already near last in the nation in business start ups. Other than the fact that the WMC is a partisan arm of the Republican party I do not see how their members do not know this deal as anything but terrible for the state. Now every company in the world looking to go to the Midwest knows not to come to Wisconsin unless we bribe them with a Foxconn sized check.

  2. Duane12 says:

    Let’s update our wishful list:

    Easter Bunny
    Santa Claus
    Tooth Fairy
    Foxconn

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