Posted on 12/17/2003 10:57:44 AM PST by lelio
Edited on 07/12/2004 3:41:00 PM PDT by Jim Robinson. [history]
Newell Rubbermaid Inc. has announced plans to close its plastic products plant in Wooster, Ohio, eliminating 850 jobs.
The Cleveland Plain Dealer said the company is also considering relocating the 400 administrative and office workers at its Wooster plant to other sites.
(Excerpt) Read more at washingtontimes.com ...
Newell Rubbermaid Inc. isn't gone yet, but Wooster residents are already worried about who and what will go with it.
It's not every day that a town learns it will lose its largest employer -- especially one that has been around as long as Rubbermaid. Plenty of people moved to town just to work for the company, and some real estate agents fear those same people will have no reason to stay when Rubbermaid leaves in June. Others at Rubbermaid may have no choice but to move to a better job market.
``We still need jobs to provide paychecks to pay house notes,'' said Tom Silver of Silver Realtors in Wooster.
A week ago, Rubbermaid announced it will close its Wooster operations and eliminate 1,250 local jobs, including 400 white-collar positions. Some of those jobs could be spared if Rubbermaid relocates the white-collar workers elsewhere in Northeast Ohio, but that's uncertain.
The only thing that is certain is that no one knows where the economic ripples from Rubbermaid's decision will stop.
Will unemployed Rubbermaid workers leave in search of work?
Will they instead choose a long commute?
Will ``for sale'' signs pop up like daisies this spring?
Will Wooster seem less attractive to home buyers now that its largest employer is leaving?
Nobody can answer these questions definitively. After all, nothing like this has happened in Wooster before. ``This is the most traumatic thing that's happened to Wooster's economy,'' said Silver.
The only situation that compares is Newell's takeover of Rubbermaid in March 1999. The company cut about 400 white-collar jobs almost immediately, and dozens of higher-priced homes hit the market within weeks.
``It took the housing market 1 ½ to two years to adjust,'' said Jerry Baker, owner of Baker Building Co. in Wooster. ``We went through 12 years of absolute growth'' before that.
Like many things in Wooster, the drive to build bigger and bigger homes was tied to Rubbermaid. The real estate market boomed in the 1980s and early '90s as the company expanded.
``Things have slowed down since Newell,'' Baker said.
Now that the combined company is leaving Wooster, Baker said he expects the real estate market to take a hit. However, he doesn't think it will be as bad as the numbers suggest.
The 850 or so manufacturing workers who will lose their jobs in June probably won't leave, he speculated. Many of them have strong ties to Wooster, and they'll try hard to find work elsewhere and commute.
But many of the 400 white-collar employees probably will leave town, Baker said, putting another flood of large houses on the market.
Silver said that phenomenon is likely to drive down the value of those homes. ``I don't know how bad it's going to get, but I think it'll be serious,'' he said.
Some residents interviewed Monday in downtown Wooster were more hopeful.
Rubbermaid employee Melissa Boals said she thinks most workers will stick around even after the company departs. The Jeromesville woman commutes about 20 minutes to Wooster, and she thinks many people would be willing to do the same for another job.
``It'll be interesting to see what happens to Wooster once Rubbermaid is gone,'' she said while standing outside the Everything Rubbermaid store.
Wooster resident Wayne Wagner pointed out that Rubbermaid isn't the town's only employer. ``We've got a big town. And I think we'll stay here.''
But Amanda Lucas said those other businesses don't offer much hope for job seekers. ``It's hard here, and there really ain't no jobs,'' Lucas said, eyeing her rambunctious 3-year-old son, Oscar. ``I know because I'm a single mom.''
Resident Vera Metsker agreed that jobs will force many people to leave. ``If they move, all this property is going to be open,'' she said.
Silver and Baker predicted a downturn in the housing market will hit sometime in 2004. Sales typically hit their stride in the spring and doldrums in the fall, plus Rubbermaid is expected to close in June.
``Pressures will be felt now,'' Silver said, ``but people will attempt to hang on as long as they can.''
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Tariffs
Thirty years ago they did make good products, but about five years later they were cheapened. They made buckets out of actual rubber that were good for carrying melted chocolate. When a coating hardened in the bucket, you could flex it and the hard chocolate fell out. They started making them out of plastic (they apparently forgot the products name) and they would quickly crack. The stuff is so cheap today I don't buy any of their crap.
Exactly how much cheaper ARE these things supposed to get when the move to China? Dont see them being sold for $2.
As an object lesson, I got a flexible made-in-China cooking utensil. There was no alternative. Not particularlly cheap either. When I got it out of the wrapper and tried to use it, I found it was junk and tossed it.
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