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Recession ships more Indiana jobs to other countries

Associated Press
May 2, 2010
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Burial casket jobs in Richmond and computer assembly services in Carmel have shifted to Mexico. Auto stamping work once done in Howe has moved to Canada and India. Client performance analysis done in South Bend is now being handled in China.

The number of Indiana plants, warehouses and offices sending jobs abroad since the recession began in December 2007 has more than doubled that of past economic downturns, U.S. Department of Labor reports show.

The shifts are largely due to lower wages in foreign countries such as Mexico, where workers earn 10 percent of what their U.S. counterparts make.

"It's hitting us very hard," said Mayor William Graham of Scottsburg, where four plants have closed for trade-related reasons. "It's impossible to be competitive with Mexico or China because of their labor costs."

During the 1982 recession, workers at 75 Indiana companies were certified as dislocated by foreign trade from January 1980 to December 1983, Labor Department reports show. This time, 163 plants, warehouses and offices are involved.

The 163 cases cited by the Labor Department could account for an estimated 50,000 job losses — about one of every six unemployed people in the state.

Michael Hicks, director of Ball State University's Center for Business and Economic Research, said the Internet and technology make it easier for companies to outsource operations to other locales than in the past.

In some cases, the imports could be a cost-control measure to weather the hard times. But many industrial workers say they'll be surprised if the jobs come back to the U.S.

"The first few times you hear a company is moving outside the U.S., it kind of shocks you. Then you get numb to it," said Larry Neer, a father of six displaced from a $12.85-per-hour logistics job last year when JDS Uniphase moved electronics assembly to Guadalajara, Mexico, from Indianapolis. "It just seems like that's the common thing to do now."

The shifting jobs have put more workers in need of job retraining.

About 7,000 workers in Indiana were certified last year for retraining, and federal officials allocated $7 million for aid.

The aid pays tuition for 104 weeks, extends unemployment compensation and provides stipends in some cases for job searches and relocations. But no jobs are guaranteed for retrained graduates, many of whom lost jobs in the auto industry.

Many of those retraining for new jobs will make significantly less than they did in their factory jobs.

Anna Rains of Lynn lost her $15.85-per-hour job when Richmond burial casket maker Milso shifted work to Mexico. She took courses in business computer skills under the trade assistance program but still hasn't found full-time work.

She's currently cleaning houses in Richmond.

Graham, the Scottsburg mayor, says his community lost nearly 800 jobs, nearly a third of the southern Indiana county's industrial base.

"The change has been so rapid and drastic; yesterday's world is just gone," said Graham. "The rapidness is just an absolute shock.

The county's unemployment rate is 12.8 percent, but Graham says the full impact of the plant closings still hasn't been felt.

"Many of these people who lost their jobs are in training and draw unemployment. Once this runs out, we're going to be in a real crisis if we don't see some new jobs," he said.

Nelson Spaulding, director of the Scott County Clearinghouse food bank, said more people are seeking help than ever before.

He said the jobless rate approached 25 percent during the 1982 recession, but then jobs returned. This time, the factories closed for good.

Kimberly Kiefer, one of five family members formerly employed by city mainstay Freudenberg NOK, is trying to find a silver lining in her situation.

"I look at this as a great opportunity for me to go back to school," she said.
 


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  • Right to Work State
    Alot of articles in up and down times repeatily blame the down turn in the economy because it simplies bad economy is the big picture in most people eyes. If you can't think of anything else to write about in a bad economy, write "anything" and it's effects from the "bad economy." Looking deeper in Indiana and youtr "Right to Work" mentality destroys alot of employees attutides, how they perceive work ethics and how they perform. Companies will always go somewhere where the workers will work cheaper. What's left is people looking for work in a hostel envioment all their life. Do a article on company greed in Indiana. I saw a article on TV on China. A company here in the U.S. sells a hat with their logo on for $20. The Chinese company makes the hats for 96 cents?!?!! What is that, a 200% mark up!?!?! Who can live on that in a, Right to Work State??!?
  • Who is Leaving
    I understand why some companies need to move jobs around and some outside the US. The company I currently work for is doing it, too. Can IBJ print a list of companies that need to move out of IN in an effort to encourage our Legislators to support appropriate legislationg and tax incentives to keep companies and jobs in IN?

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  1. City-County Councilor Angela Mansfield and Bob Lutz have a case of wishful thinking.

    They obviously don't really care about the cost.

    They should.

    Extending Federal Benefits to Same-Sex Couples Will Cost $898M, CBO Says

    http://www.foxnews.com/politics/2009/12/22/extending-federal-benefits-sex-couples-cost-m-cbo-says/

  2. Brett, be careful what you lie about, the truth always comes out.

    "IMS's George Honored: Tony George, Indianapolis Motor Speedway president and chief executive officer, received the inaugural Pioneering and Innovation Award at the Autosport Awards Dec. 5 in London for his leadership in the development of the Steel and Foam Energy Reduction (SAFER) Barrier. George received the award at the annual gala at the Grosvenor House on behalf of the creators of the SAFER Barrier from Prince Salman Bin Hamad Al Khalifa, the leader of the Bahrain International Grand Prix circuit. This is the fourth major award that has been presented to honor George and the SAFER Barrier development team. The SAFER Barrier also received the Louis Schwitzer Award, SEMA Motorsports Engineering Award and GM Racing Pioneer Award in 2002. The SAFER Barrier was installed in all four turns of the Indianapolis Motor Speedway a pioneer in safety for drivers, cars and tracks -- in time for the 86th Indianapolis 500 in 2002. It since has been installed at more than a dozen other tracks, and the latest iteration will be installed at the Speedway in the spring.(IMS PR), see more on my Indy Track News page.(12-7-2004)"

    As far as the cart safety team, I cannot find anything on its date of creation. The Delphi Safety team was created in 1996. For some reason there is not much info out there on defunct racing series.

  3. Great article Anthony. Glad IMS is finally being run like a business and not a personal check book to finance the "Vision".

    Things are looking up but 15 years of scorched earth won't be fixed overnight. Unfortunately the TV ratings are still poor and that won't change anytime soon with the brilliant 10 year contract signed under the former regime.

  4. Brett not sure why you wonder what he said in his quote. "''I would like to jump in a time machine, go back to 1995, and tell the owners and Tony George not to split,'' Franchitti said. ''As soon as my time machine is done, I know where I'm going.''"

    Pretty clear, he would love to go back and tell TG and the team owners not to split.

    I am not sure there is anyone who wanted the split, and I don't think there is anyone who would not like to go back and prevent the split. But, as has been discussed ad nauseum, without the split carts management by team owners would have run all of ow racing into bankruptcy. If cart had such a wonderful product, then losing IMS would not have forced it into bankruptcy. If NASCAR lost Daytona or Charlotte, it would not fail like cart did.

    Truth,

    So you predicted that cart would go into bankruptcy and cease to exist while Indycar would continue on? I missed that prediction.

  5. I want to live in a city that has a garage structure to be proud of for it's innovating design!

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