Wednesday, July 23, 2008

Trouble in the Heartland

Perilous times, these. On Friday word leaked out to the 500 or so employees of our city's largest manufacturer and second largest employer after the hospital: don't bother to show up for work on Monday. The business makes furniture - upscale, upholstered furniture like $2,000 sofas and such.

The easy target for this local crisis is the crushing competition of the world economy. These jobs in this factory are the kind that have raised families, paid mortgages, sent kids to college, made hefty payments on nice cars. Now 500 of them are on the ropes.

The company is scrambling to raise capital. Summers are always the slow season, but this summer came with a roundhouse punch - hopefully not a knockout. The company's financier is evidently getting skittish about its investments in the rust belt and is tightening its own belt. So there is a mad scramble on for working capital to throw the doors back open and get back to fulfilling orders. The Mayor and economic development director and Chamber director and numerous others are making phone calls, working with upper management, tracking down leads, trying to fill a gap.

Meanwhile, at 1:00 today the local human services office held a meeting in the high school auditorium for the 500 idled workers to go over the procedures for registering for unemployment compensation - if it comes to that. Simultaneously, the workers and their spouses and significant others held a rally to signify some solidarity in facing this whole thing.

I admire a friend of mine who told me today he has enough work lined up on the side, roofing houses and such, that he can go a month or two without problem - not sure what happens when the weather turns cold. But for now he has a pretty good "Plan B" - makes me wonder what mine would be.

But hundreds of families in this area are probably wondering tonight how things are going to go. How to keep that four dollar gas in the tank, and that three-fifty milk in the fridge.

I hope and pray the capital is raised to bridge this gap - and the next one, and the next one. I hope the spark of a cash infusion will cause the corporation to sputter back into full production. I hope there is still a market for upscale, American made furniture - not that it's easy to overcome the chasm of international wage differences, and not that the furniture industry as a whole is enjoying particularly good times.

This is just a story of one manufacturer in one Midwestern town. I have seen it occur several times in a host of similar towns. And who knows - they may dodge this bullet and emerge a strong firm. But there is an inescapable feeling that these times are a little different - some new variables in the mix - some new challenges looming out there. I'd like to think we're up to the challenge, but it will take some reinvention, some altered priorities, and a whole bunch of smart and productive people. And for now, someone or some bank willing to roll the dice with some serious money. Perilous times, yeah. But perhaps there is some new era that we can't even sketch out right now, out there beyond today's gnashing of teeth. Let's hope so, and get working on it.

6 comments:

Anonymous said...

Your story makes me very sad, and angry that this is happening all over. I would buy more american made products if I knew more about what was made right here. I think that could be part of the solution. I wish advertizing would highlight the products that were made here.

Ben said...

Sorry to be a bit of a downer, but it's what's happening in my corner of the world right now and it affects a whole town. It is harder and harder to find true US products. I'm sure my GM car has parts and components from all over the world. And then they make Hondas 80 miles from me, so what's a US product?

Jen said...

Yes very sad. That's another reason IKEA makes me, well, not interested to say it nicely.

Minerva said...

Unfortunately, it's not just your neck of the woods. It's happening everywhere, as you know. What is the solution? I wish I knew. A bad economy only makes it worse. It's so much easier for people to buy cheaper stuff made overseas.
Good piece, though. You are a good writer.

gerry said...

I feel for and pray for all the workers involved and all those effected similarly across the nation. My husband was downsized two years ago, Verizon sent his IT job over to India, Its taken us two years but we are pulling outselves out of our whole and he now has a good job. You never think it going to happen to you. It seems to be speading everywhere. This ecomony is scary. My children have made us very conscious of out buying decsions. I hope this downward spiral stops. Good luck to your workers.

Jessica said...

It is such a scary time for so many people right now in our country. It's everywhere you look! I get sticker shock where ever I go... grocery store, gas station.