IBJNews

Recession ships more Indiana jobs to other countries

Associated Press
May 2, 2010
Keywords
Back to TopCommentsE-mailPrintBookmark and Share

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.
 

ADVERTISEMENT

  • 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?

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT