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Local News

Saturday, February 20, 2010

Progress Edition: Big industries hope for turnaround year
By LOU WILIN

STAFF WRITER

Several of Hancock County's major industries are hopeful 2010 will be a turnaround year.

Many reduced employment in 2009 when their sales slumped for a second straight year. Six of the 13 companies responding to The Courier's annual survey of local industry reported reduced employment by the end of last year.

Employment also declined among companies that did not participate in the survey.

Only two participants in The Courier's survey reported job growth last year: Consolidated Biscuit has seven more employees, and Whirlpool Corp. has 200 more employees than a year ago.

But the Findlay Whirlpool plant's gain was Jackson, Tennessee's loss. Jackson lost 500 jobs when its Whirlpool plant closed and the work was shifted to Findlay.

Likewise, Cooper Tire & Rubber Co.'s employment levels in Findlay are stable, but Albany, Ga., lost 1,400 jobs last year when Cooper closed its plant there and spread the work among plants in Findlay, Texarkana, Ark., and Tupelo, Miss.

Compared with job losses suffered in other communities, Hancock County's are modest. Employment reductions were reported by Nissin Brake, 90; Advanced Drainage Systems, 26; Findlay Publishing Co., 18; Ball Corp., 13; and G.S.W. Manufacturing, 10.

Findlay Industries closed last year, putting 105 people out of work. The company employed more than 300 in Findlay in 2006 before its fall started.

National Lime & Stone Co., which has been dragged down by the slumping construction markets, declined to disclose employment numbers. It said seasonal layoffs were extended last year and operating schedules were “sharply curtailed.”

Several industries expressed confidence that layoffs and other cost reductions have positioned them for a more stable 2010.

Four major companies who reported stable employment last year expect that to continue this year: Cooper Tire, Shaw Environmental Group, Garner Transportation and Marathon Oil Co.







Advanced Drainage Systems

401 Olive St., Findlay

Local product(s)/service(s):

• Storm water management systems

Local work force: 200

Unionized: No



Employment and production levels are expected to remain stable in Findlay for the maker of polyethylene products for drainage systems.

Employment declined by 26 last year.

Advanced Drainage Systems (ADS) last year entered into a joint venture with Tigre S.A. and purchased StormTech and Century Plastics. It also opened two Canadian manufacturing plants.

The Tigre joint venture resulted in the creation of Tuberias Tigre-ADS Limitada. The company combines ADS' corrugated pipe and Tigre's solid wall pipe to expand South American sales of both products.

StormTech, the market leader in retention/detention systems, had been created as a 50-50 joint venture between ADS and Infiltrator Systems. ADS agreed to purchase the remaining 50 percent.

StormTech chambers are engineered to meet the demands of subsurface storm water management and provide underground detention for storm water runoff.

Century Plastics is a manufacturer of corrugated pipe mainly for agricultural drainage systems.

The manufacturing plants in Heidelberg, Ontario, and Drummondville, Quebec, will produce ADS' full line of corrugated pipe.







Ball Corp.

12340 Allen Township Road 99, Findlay.

Local product(s)/service(s):

• Packaging products.

Local work force: 361

Unionized: No



Ball Corp.'s employment declined by 13 people in the past year. Five people were laid off and eight who retired have not been replaced yet.

However, the plant plans to hire seven workers to replace those who retired. So Ball Corp.'s employment and production outlook is stable this year.

In a capital project last year, a can line was converted to accommodate multiple sizes. In addition, production of the Coke 100-calorie, 7.5-ounce cans began.

In personnel changes, Connie Walls, human resources manager, retired.

Ball's Findlay plant had multiple achievements in 2009.

In August it achieved 1 million man-hours and one year without a lost-time accident.

It also won the Abbott Laboratories Supplier Excellence Award for outstanding performance and continuous improvement in supplying materials to the seller of health care products. Ball was one of 37 companies chosen from more than 15,000 worldwide.

It was the fourth straight year Ball won the award, an achievement matched by only one other global supplier.







Consolidated Biscuit

312 Rader Road, McComb

Local product(s)/service(s):

• Baked goods

Local work force: 1,059

Unionized: No



Employment and production levels are expected to be stable again this year for the manufacturer of baked goods such as cookies and crackers.

Consolidated Biscuit added seven employees last year.

Company sales increased slightly to $397.5 million in 2009, Chief Financial Officer Bill Varney said.

Consolidated Biscuit in 2009 acquired a building in Tecumseh, Mich., but has not set plans for its use.







Cooper Tire & Rubber Co.

701 Lima Ave., Findlay

Local product(s)/service(s):

• Replacement tires

Local work force: 2,044

Unionized: Yes



Cooper Tire & Rubber Co. anticipates employment will increase slightly this year and production will be stable.

Chief Executive Officer Roy Armes credits the outlook to a combination of cost-cutting moves made last year and improved industry conditions.

When the Albany, Ga., factory was closed last year, some of its production was shifted to the Findlay plant.

Besides that, more motorists are doing something they had been putting off for a long time: replacing their tires, Armes said. Stable gasoline prices also have helped. In seven of the past 11 months, miles driven nationwide have exceeded the mileage of a year earlier, he said.

The company further helped its cause by spending about $9 million on equipment and other efficiency improvements at the Findlay plant.

In management changes, Brad Hughes joined the company as chief financial officer and Brenda Harmon became chief human resources officer.







Findlay Publishing Co.

701 W. Sandusky St., Findlay

Local product(s)/service(s):

• Print, radio & electronic media

Local work force: 202

Unionized: No



Employment is expected to be stable and profit to grow this year for the parent company of The Courier, The Review Times, WKXA-FM, WFIN-AM, Internet Services and Allegra.

The company weathered a difficult 2009 in which sales declined by 10 percent from 2008.

Employment declined by 18, including 13 positions eliminated by streamlining production between The Courier and The Review Times. All remaining employees had to take some unpaid time off in 2009.

The Courier last year started a special section, Celebrations, which appears each Tuesday.

Findlay Publishing operated WBUK, 106.3, The Fox, for its first full year in 2009.

Findlay Publishing plans to launch new digital media products this year.







Garner Transportation Group

9291 County Road 313, Findlay

Local product(s)/service(s):

• Trucking

Local work force: 125

Unionized: No



Garner anticipates production levels will increase this year after a stable 2009.

The trucking company added 17 customers last year and opened a terminal in Anderson, Ind.

“It has been a challenging year for the trucking industry with more than 2,500 trucking firms failing due to customer bankruptcy, ties to the automotive industry or not having supportive, extended credit,” company President Sherri Garner Brumbaugh said of 2009. “Garner is fortunate to have a stable and selective customer base along with supportive financial institutions from the trucking industry and community.”

Garner Transportation is celebrating its 50th anniversary this year. It was founded by Vern and Jean Garner. Vern died in 2007 and Jean still operates it as a family-owned and operated company. Planning is under way to transfer ownership to the second Garner generation.

Garner Transportation received the Platinum Carrier Award from Lowe's Companies for providing 99.8 percent on-time delivery in 2009.







G.S.W.

1801 Production Dr., Findlay

Local product(s)/service(s):

• Automotive wiring harnesses

Local work force: 115

Unionized: No



The assembler of wiring harnesses for various automotive uses anticipates production levels and employment will increase in latter 2010.

It also reported an “optimistic” profit outlook for this year.

That comes after a “survival of the fittest” year in 2009 in which many assembly and parts manufacturing plants minimized losses by cutting costs. Many plants closed.

Some G.S.W. customers phased out or “drastically reduced” some products, General Manager Joseph Nemrava said.

As a result, G.S.W. had to lay off 10 employees, including production workers and office staff. For a while, it also reduced staff to 32-hour weeks. Management pay was reduced and the rest of the staff received no wage or salary increases.

With times tight, G.S.W. made capital improvements only to existing production lines. The improvements were limited to $100,000. Nemrava said G.S.W. will continue to invest the minimum in process improvements and technology expansions.

The company received the Top Performance Award from Suzuki Manufacturing of America. It also received the Award of Excellence in Recognition of Quality, Cost and Delivery from Michigan Automotive Compressor.

G.S.W. in 2009 celebrated its 20th anniversary in Findlay.







Lowe's Distribution

12700 County Road 212, Findlay

Local product(s)/service(s):

• Retail distribution

Local work force: 700

Unionized: No



Employment at Lowe's Regional Distribution Center is expected to be stable this year and it held steady in 2009.

It will be hiring 40 seasonal workers for its busy spring season.

The distribution center got new asphalt paving on its lot last year.

The Lowe's Regional Distribution Center achieved “RDC Excellence Awards” all four quarters.

It will celebrate its 11th consecutive “RDC Excellence Award,” breaking the current company record of 10.







Marathon

539 S. Main St., Findlay

Local product(s)/service(s):

• Petroleum

Local work force: 1,565

Unionized: No



Employment is expected to be stable at Marathon in Findlay in 2010, as it was in 2009.

Marathon expects exploration and production levels to remain relatively stable during 2010. Projections for exploration and production available for sale are between 390,000 and 410,000 barrels of oil equivalent per day, compared with the 2009 level of 405,000.

Production in 2009 grew by 9 percent from 2008, the company reported. The increase was partly due to a full year of production from the Alvheim development offshore Norway, versus a half-year of Alvheim production in 2008, and increasing production in the Bakken fields in North Dakota.

Marathon's aggregate refining capacity will increase this year primarily due to completion of a major expansion project at its refinery in Garyville, La.

Crude oil refined for 2009 averaged 957,000 barrels per day compared with 944,000 barrels per day in 2008, and total refinery throughputs averaged 1,153,000 barrels per day for 2009 compared with 1,151,000 barrels per day for 2008.

In capital improvements, the $3.9 billion Garyville project was completed on schedule during the fourth quarter of 2009. The refinery's capacity was increased from 256,000 barrels per day to 436,000 barrels per day, making it among the largest refineries in the United States.

The expansion also improved efficiencies, flexibility and product yields.

Meanwhile, construction is about 30 percent complete in the Detroit refinery's $2.2 billion heavy oil upgrading project. When finished in latter 2012, it will increase the Detroit refinery's heavy oil processing capacity, including Canadian bitumen blends, by about 80,000 barrels per day, and will increase its total crude oil refining capacity by about 10 percent to 115,000 barrels per day.

In top management changes, J. Douglas Sparkman retired last year as senior vice president for transportation and logistics, after 30 years of service.

He has been succeeded by Mary Ellen Peters.

Thomas M. Kelley was promoted to senior vice president for marketing.

Marathon's Findlay complex was certified as a Voluntary Protection Program Star Site by the Occupational Safety and Health Administration. It also received the Ohio Award for Outstanding Achievement in Environmental Stewardship.







National Lime & Stone Co.

551 Lake Cascades Parkway, Findlay

Local product(s)/service(s):

• Stone & building products

Local work force: N/A

Unionized: Yes



The fourth straight year of sales declines did not prevent an earnings increase in 2009 for the manufacturer of gravel, crushed stone and sand for construction.

National Lime credited the improved bottom line to cost-cutting. Seasonal layoffs were extended and operating schedules were “sharply curtailed,” the company reported.

National Lime also benefited from reduced prices for petroleum-based products. Health care costs also declined after a change in the company's programs and offerings.

The sales decline in 2009 was the result of the weak economy, National Lime reported. Sales are not expected to increase this year.

“Residential and commercial construction, which traditionally account for an important portion of annual sales, remain very slow,” the company said.

But there were two exceptions: National Lime & Stone has been supplying crushed stone for construction of the CSX intermodal and switching yard near North Baltimore, and the Home Depot warehouse near Van Buren.

National Lime increased its market share in the industry in 2009, the company reported.

It opened four new rail-served sales centers which will be supplied with crushed stone from its Carey operation. The sales centers are in Bellaire, Coshocton, Medina and Pittsburgh. The Pittsburgh center is National Lime's first location outside Ohio.







Nissin Brake Ohio

1901 Industrial Dr., Findlay

Local product(s)/service(s):

• Automotive products

Local work force: 670

Unionized: No





The manufacturer of brake systems expects 2010 to be better than 2009. Employment will likely be stable because production will be stable or will increase slightly, Nissin Brake reported.

It expects profits to grow this year thanks to cost and staff reductions forced by the auto and motorcycle industry downturns in 2009.

When Nissin sales declined 12 percent to $300 million, production had to be reduced. Nissin pared its staff by 90 in 2009.

At first, the company responded to the hard times by putting most employees on four-day weeks. When voluntary layoffs were implemented in May, regular five-day operations resumed.

The layoffs might have been larger but Nissin began to do plastic injection molding of brake fluid reservoirs for the Honda Civic, the company reported. It picked up the business after a Honda supplier in Dayton went out of business.

The company added $500,000 in new machining centers, expanding its brake caliper machining operations.

It also installed $500,000 in melt furnaces for its brake master cylinder casting area.

Nissin will take upgrades to a higher level this year. In a $13.4 million investment, its machining and assembly areas for brake modulator units will be expanded by 7,000 square feet.

An additional $4.9 million investment will enable Nissin to produce a new generation of brake master cylinder.

In personnel changes, Nissin will bid farewell to Norio Hirotani, who will retire in March 2010. Hirotani, formerly senior vice president, has been consulting for Nissin Brake Ohio's Purchasing Department.

Nissin last August was awarded the 2009 E-Award by Gov. Ted Strickland for Excellence in Exporting.

Nissin Brake Ohio also was named the 2009 Small Business Exporter of the Year by the companies of Tall Timbers Industrial Park and GreaterFindlayInc.

It achieved one million man-hours without a lost-time accident in October 2009, and received Honda de Mexico's 2009 award for perfect quality and delivery. In December 2009, Nissin management awarded all employees a $75 bonus for the company's first-ever month of perfect customer quality.







Shaw

16406 U.S. 224 East, Findlay

Local product(s)/service(s):

• Specialized environmental services

Local work force: 200

Unionized: No



Employment and production are expected to remain stable again this year at Shaw Environmental & Infrastructure Group.







Whirlpool Corp.

4901 N. Main St., Findlay

Local product(s)/service(s):

• Dishwashers

Local work force: 2,000

Unionized: No.





Whirlpool added 200 jobs at its Findlay operations in 2009 after closing its Jackson, Tenn., plant.

The Findlay division assumed production of all Maytag, Jenn-Air and Amana dishwashers.

It expects employment to remain stable in 2010. Production also is anticipated to be stable with the potential for a slight increase, the company reported.

It appears consumers' confidence in the economy and their ability to buy appliances may be growing. Whirlpool has predicted the number of appliances to be sold industry-wide in the United States will climb by 2 percent to 4 percent this year.

Whirlpool's sales in North America climbed 4 percent in the fourth quarter of 2009. It was the first quarter of sales growth for Whirlpool since early 2007.

In 2009, the Findlay plant produced its 65 millionth appliance since it opened in October 1967.

Wilin: 419-427-8413, Send an e-mail to Lou Wilin


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The Courier won't be published on Monday, in observance of the Labor Day holiday.

Because of the holiday, some advertising deadlines have been moved up this week:

Black and white display advertising for Tuesday's newspaper must be placed by noon Friday. Display advertising for Wednesday's newspaper must be placed by 2:30 p.m. Friday.

Color display advertising for the Thursday, Sept. 9 newspaper must be placed by Friday.

Classified advertising and City and Country advertising for Saturday's newspaper must be placed by 2 p.m. Friday. Classified ads for Tuesday's newspaper must be placed by 2:30 p.m. Friday.

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