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Job losses mount for McDowell County(The McDowell News Via Acquire Media NewsEdge) Aug. 21--Cobia Boats announces it will temporarily shutdown and layoff 68 workers. Swift Galey says it will cease all operations permanently, leaving 283 people out of a job. Other employers have had to lay off workers. These job losses are the latest in a series of plant closings that have occurred in McDowell County for the past several years. Like so many other communities, McDowell has been hit hard by foreign competition and the relocation of manufacturing jobs to other countries. Since 1990, the city of Marion alone has lost 2,900 manufacturing jobs. Those positions were located either inside Marion or at plants served by the city's water and sewer system. The figure of 2,900 includes the most recent ones lost at Swift Galey. In addition to the lost jobs and wages, the economic bad news affects people in other ways. The city of Marion will lose at least $16,000 a year in property taxes from the Swift Galey closing. It will no longer get $90,000 a year in water and sewer revenue because of the closing as well, according to City Manager Bob Boyette. Marion's water and sewer system was originally built with large manufacturing industries as the big customers. These industries, mostly textiles, used a lot of water and sewer. Now, these industries are shutting down and someone else has to shoulder the burden. "The burden of paying water and sewer bill has shifted from big industries to citizens and small businesses," said Boyette. Local leaders are hopeful that a new tenant can be found for the Swift Galey plant, which is a relatively modern, up-to-date facility. "It should have a decent chance at getting rented but we won't have as good a water and sewer customer as Swift Galey," said Boyette. In Old Fort, the International Automotive Components plant, formerly Collins & Aikman, has had some temporary layoffs. Throughout the month of July, the IAC plant laid off 99 workers. Dave Ladd, director of marketing and communications for IAC, said all these layoffs were temporary and done on a voluntary basis. These people are still technically employees of the company. The layoffs were done "directly as a result of smaller production" of automobiles. The plant makes interior carpets for cars and trucks. "By year's end, we expect most of those folks to be back, business circumstances permitting," said Ladd. For the month of June, McDowell reported a 7.2 percent unemployment rate, which is one point higher than the statewide rate of 6.2 percent. McDowell's rate for that month is still lower than the ones for Burke, Mitchell and Rutherford counties. They reported rates of 7.8 percent, 7.9 percent and 7.7 percent respectively. But the rate for July will surely by higher. That month usually reports higher jobless rates. Marilyn Williams is the manager of the Marion office for the N.C. Employment Security Commission. She's seeing an economic downturn across the region, not just McDowell. "It's the way things are for this moment," said Williams. "It's unfortunately all over. The region is having a downturn. We're getting hit a bit harder than some of our surrounding counties that deal more with tourism and service related industries." In June, jobless rates increased in 82 of North Carolina's 100 counties. "The effect of the national economy is being felt in all of North Carolina's 100 counties," said state ESC Chairman Harry E. Payne Jr. "While the number of counties that had increasing rates is fewer than the previous month, we see that the rising price of gasoline is having an impact on the labor force. While our commission offices still receive job orders from employers, the pace has dropped. Even during the busy summer months, it appears employers have reduced hiring, making it a much tighter job market." County Manager Chuck Abernathy said he's working to find a new tenant for the Swift Galey plant. He's also the county's economic development director. Abernathy said he's pulled the tax information about the building on U.S. 70 East and is familiar with its size and usefulness. He's also contacted the N.C. Department of Commerce to let them know the Swift Galey building will soon become empty. Abernathy has both called and e-mailed the company about marketing the building to prospective new tenants but has not gotten permission yet. "I can't market it without permission," he said. On the other hand, Abernathy is excited about the new PRC Industries taking over the former Old Fort Finishing complex. The new owner is busy renovating the building, which includes spending $600,000 on a new roof. When it is up and running, PRC will employ more than 150 people. However, the company is not yet taking applications. Abernathy has also talked with the owner of Cobia Boats. "He said it is their hope and their intent to put the building back in operation," said Abernathy. "He was optimistic it is going to happen. It is just a matter of time." To see more of The McDowell News or to subscribe to the newspaper, go to http://www.mcdowellnews.com. Copyright (c) 2008, The McDowell News, Marion, N.C. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |