Another plant closing

[Patrick]

Thanks to outsourcing.



Plant's closing to deal $37.9 million blow

By Julie Bisbee
The Oklahoman

The expected loss of labor income in Grady County after Delta Faucet Co. closes its Chickasha plant would be about $37.9 million, according to state Commerce Department figures released Thursday.
Q&A with Phil Busey
That's roughly one-third of the county's total personal income, said Robert Dauffenbach, University of Oklahoma economist.
The department estimated that most jobs at the Delta plant paid about $17.88 an hour.
Delta announced Tuesday that it would close its plant that employed 590 people. The factory has made residential and commercial faucets in Chickasha since 1976. Company officials say the plant will close in the next nine to 11 months.
The Commerce Department estimates that 1,029 jobs will be lost in Grady County. Since many Delta workers drive from other parts of the state, the overall loss of jobs in the state was estimated to be 1,384. That total includes all employee jobs, positions at businesses that provide goods and services to the factory, and jobs lost because employees have less money to spend at stores or restaurants.
"That's a pretty heavy blow," Dauffenbach said. "I suspect those are fairly well-paying jobs, and they're not an easy blow to recover from. Just imagine how celebrated having 600 jobs come would be."
Delta's parent company, Michigan-based Masco Corp., said closing the Chickasha plant is part of a plan to reduce operating costs by $200 million, consolidate North American operations and increase overseas outsourcing. Delta has production facilities in Greensburg, Ind., Jackson, Tenn., and Panyu, China.
"What we're seeing here is the continual playing out of the global economy," Dauffenbach said. "I suspect this work isn't landing anywhere else in the United States."
City officials said the projected loss the closed Delta plant would bring to the community of about 16,400 seemed high.
"We have no way of verifying any of this information, but we don't think it's accurate," said Marilyn Feaver, president of the Grady County Economic Development Council and the Chickahsa Chamber of Commerce. "But it's the best we have to work with. If this were true we would have experienced the same loss from ArvinMeritor leaving."
Auto-parts maker ArvinMeritor announced last fall that it would take its shock and strut manufacturing and 270 jobs to its plant in central Mexico.
The economic effect is figured using a computer program that includes variables such as employee commuting patterns, said Kathleen Miller, director of research and economic analysis for the Commerce Department. "Those are merely estimates," Miller said. "We think it's better to estimate higher. Wouldn't it be great if this was higher than reality."

[Patrick]

Will that last company to leave the United States please turn out the lights?

[okiemom]

From the Chickasha Daily Express


Delta plans to close Chickasha plant


By JASON CLARKE and Jenese Snow

Staff Writers

When all three Delta Faucet shifts were called in for a meeting 2:30 p.m., the city went on edge.

When the employees emerged, the news was not good.

Sharon Rothwell, vice-president of corporate affairs for Masco, the company that owns Delta Faucet, said 591 Chickasha Delta employees will loose their jobs as the company closes the plant over the next nine to 11 months. Rothwell said, more than likely, there won’t be any layoffs within the next 30 days, however, the trimming will begin at the end of February based on work process and seniority.

Rothwell said the decision is the result of analysis over a number of months with the decision being made only a couple of weeks ago. She added that the closure is part of a company-wide cost savings plan to help keep Delta competitive in their market. Production levels are not being lowered. Rather, current Chickasha jobs will either be redistributed to other domestic plants, Delta’s plant in China, or outsourced to other companies.

Rothwell said only a limited number of current employees could be transferred to other domestic plants.

Word spread quickly yesterday.

Chickasha Mayor J.E. Parker paused during last night’s city council meeting to comment on Delta Faucet’s impending closure.

Acknowledging the heavy loss to the community, he encouraged citizens to look at the matter “in a positive vein.”

“They gave us almost 30 years,” he said. “They were a good corporate partner. Now that a decision has finally been made, the city can begin to look for someone else to fill that slot. We’ve got to stay positive, move on ahead, and do the best we can,” Mayor Parker concluded.

Later in the meeting, the council approved a request from Delta to conduct a Wellness Program 5K walk/run event and a 10K bicycle event at Shannon Springs Park.

In a corporate press release announcing the closure, Delta Faucet stated “It is a regrettable, yet sound business decision to assure continued long-term growth and success for the Delta Faucet Company and in no way reflects on the quality of our workforce in Chickasha.”

Chickasha Chamber of Commerce President Marilyn Feaver could not be reached for comment.

[okiemom]

First Hess Oil, then Arvin, now this. I don't know what those poor people will do for jobs.

[Curt]

Will that last company to leave the United States please turn out the lights?

No kidding man.We lost 20 more people today at work and more to come next week.I dont mean to be a downer but something has to be done soon in this country.I wish it were as easy as just buying american made products to keep our people working, but it aint that easy anymore with everything being made in China or Japan anymore.Those 20 people who were walked out the door today all lost their jobs due to outsourcing, imagine how they feel about China and Japan right now and I really cannot blame them. yet they have no choice but to buy products made by the very people that are taking our jobs, we really have no choice.I dont really even blame China or Japan I guess, but our own government that let things get this bad.

[Patrick]

You can't blame it on one political party, but seems like less of this was happening before Bush took power.

[Curt]

You can't blame it on one political party, but seems like less of this was happening before Bush took power.

I really dont blame any one party or person. I really dont know where to place the brunt of the blame I just know of all the people I come in contact with not one of them is in favor of outsourcing jobs, so I guess the government really does not care what the american people want, whatever benefits uncle sam is what uncle sam is going to do regardless of what the taxpayers want.

[Curt]

Are we rollin' downhill like a snowball headed for hell?
With no kind of chance for the flag or the liberty bell?
I wish a Ford or a Chevy would still last ten years like they should.
Is the best of the free life behind us now and are the good times really over for good?


"Merle Haggard" and the only thing I would change with these words is that a Ford and a Chevy should last 20 years.

[Bobby H]

The Delta plant's closing in Chickasha can simply be summed up as American big business culture run afoul.

The only thing that matters is the profit motive. Get as much profit onto the balance sheets for the next quarterly report as possible. The skewed numbers will boost the price of the stock, the board members will get big dividends and then pay the journeyman CEO of the month a big fat bonus. Then they can take all that cash and buy even bigger houses, fancier cars and younger trophy girlfriends to spark jealousy in their rivals.

This sounds like exaggeration and hyperbole; however it is very close to the truth. A rapidly shrinking number of large American companies have any kind of loyalty at all to community or country.

Just look at all the contradictory behavior. Take Google for example. They're trying to keep the US Government from getting data on its American users, but at the same time they capitulate to Communist Chinese Government demands to censor free speech and make it easier for that government to track down dissidents. It doesn't make any sense, until you see the common thread of the profit motive. Google will lose money in America if it lets our government have its way. By letting the Chinese government have their way, Google stands to make a fortune.

I'm not a big fan of unions and I don't feel that anyone is simply entitled to a job just because they got out of high school and have a pulse. However, it seems very clear that working for a large corporation is a growing liability.

Unfortunately, opening your own small business or working for another small business is an even less secure prospect. Our health care costs, worker's comp insurance costs and other costs of doing business are out of control and breaking the backs of many small businesses.

But that doesn't mean squat to me as long as my shares of Pfizer gain more money. Booyah!

If anything, some of these developments may encourage me to buy foreign more often. Look at the problems Ford and GM are having. But then you have to examine the culture at those companies.

Ask a Japanese auto company executive what he does for a living and he'll probably reply, "I make cars for a living." Ask an American auto executive who makes 5 times as much money, "I make money for a living."

We're not concentrating on making products. We're only interested in making money. I think that's why Asia and Europe are both kicking our tails.

[dirtrider73068]

You make a good point, americans don't see what they do for a liveing its what they make, I myself know what I do for a liveing I maintain the parks the kids play in, make them clean and safe. It doesn't matter how much I get I am just glad I do the work I do. I think we should stop buying forign made merchandise and start buying all american. I won't go into a store or if I cna help it buy something that is forign made, but you know allot of that over seas stuff is made alot better, stonger, and last longer than soemthing thrown together in the usa.

The Delta plant's closing in Chickasha can simply be summed up as American big business culture run afoul.

The only thing that matters is the profit motive. Get as much profit onto the balance sheets for the next quarterly report as possible. The skewed numbers will boost the price of the stock, the board members will get big dividends and then pay the journeyman CEO of the month a big fat bonus. Then they can take all that cash and buy even bigger houses, fancier cars and younger trophy girlfriends to spark jealousy in their rivals.

This sounds like exaggeration and hyperbole; however it is very close to the truth. A rapidly shrinking number of large American companies have any kind of loyalty at all to community or country.

Just look at all the contradictory behavior. Take Google for example. They're trying to keep the US Government from getting data on its American users, but at the same time they capitulate to Communist Chinese Government demands to censor free speech and make it easier for that government to track down dissidents. It doesn't make any sense, until you see the common thread of the profit motive. Google will lose money in America if it lets our government have its way. By letting the Chinese government have their way, Google stands to make a fortune.

I'm not a big fan of unions and I don't feel that anyone is simply entitled to a job just because they got out of high school and have a pulse. However, it seems very clear that working for a large corporation is a growing liability.

Unfortunately, opening your own small business or working for another small business is an even less secure prospect. Our health care costs, worker's comp insurance costs and other costs of doing business are out of control and breaking the backs of many small businesses.

But that doesn't mean squat to me as long as my shares of Pfizer gain more money. Booyah!

If anything, some of these developments may encourage me to buy foreign more often. Look at the problems Ford and GM are having. But then you have to examine the culture at those companies.

Ask a Japanese auto company executive what he does for a living and he'll probably reply, "I make cars for a living." Ask an American auto executive who makes 5 times as much money, "I make money for a living."

We're not concentrating on making products. We're only interested in making money. I think that's why Asia and Europe are both kicking our tails.