by Robert Maynard
Ever since IBM decided to build in next generation microelectronics plant in FishKill NY, observers here in Vermont have been marking time for the the Essex Jct. based plant. Factors like high taxes and regulations, along with numerous others, have been discussed repeatedly on this site as contributing to IBM’s decision to choose Fiskill as the place to invest in the future and build “Fab 2000.” The decision to sell off an unprofitable part of IBM’s business has finally been made, as noted in this WACX-TV article:
“They are not the IBM they were 20 or 30 years ago when they essentially made computers and chips. Now, they are primarily software and consulting, and this is just a small part of their business and not very profitable. So, if you want to boost the profits of a company, one way you can do it is by getting rid of the parts of the company that are not very profitable,” Woolf said.
And that could include the Essex Junction plant.
Should IBM find a buyer for its Vermont plant, they will have to deal with all the headaches that IBM did, which made the plant not profitable. Not the least of these problems is the state’s insistence on going the single payer route toward health care reform. Representives from both IBM and Dealer.com aired their concerns at a Senate Committee hearing almost 3 years ago.