Saturday, November 05, 2011

FLORIDA: Manufacturing jobs plummet in Indian River County between 2000 and 2009

INDIAN RIVER COUNTY — Manufacturing jobs in Indian River County fell dramatically between 2000 and 2009 as the economic recession took a heavy toll on its largest employer, but local officials said they have been seeing growth at other local companies in recent years.

Manufacturing jobs have fallen across the country in the last decade and despite its reputation as more of a tourist and retirement destination, Florida has also been burned by the flameout.

The U.S. lost nearly a third of its 16.5 million manufacturing jobs from 2000 to 2009. Florida lost almost 30 percent of its 414,435 jobs during that time period, according to data released by the U.S. Census in June.
 
Along the Treasure Coast, the biggest tailspin was in Indian River County, where manufacturing jobs between 2000 and 2009 fell by almost a third, from 2,668 to 1,805 jobs.

While there are few dozen manufacturing companies on the most recent list put out by Indian River County Chamber of Commerce, for the most part when it comes to manufacturing jobs, Piper Aircraft Inc. plays the tune.

Piper, then known as the New Piper Aircraft Inc., had about 1,400 employees in the beginning of 2000. By the summer of 2009, the number had fallen to 580 workers as the recession crippled the general aviation industry.

The numbers suggest Piper alone might have accounted for the bulk of the 863 decline in manufacturing jobs seen between 2000 and 2009.

Macho Products Inc. and MDI Products LLC, which shared facilities west of Sebastian, also saw a dramatic drop in jobs as manufacturing of their products was moved overseas.

Piper earlier this year had about 850 employees before the company announced Oct. 24 it was discontinuing its Piper Altaire business jet program and laying off 150 employees and releasing 55 contract workers.

Helene Caseltine, director of economic development for the chamber of commerce, said other than Piper, the county has seen an uptick in manufacturing jobs over the last couple of years. The number of manufacturing jobs in the county increased by 180 between 2009 and 2010, according to the Florida Department of Labor and Employment Security.

Caseltine pointed to companies like Girard Equipment. The company that makes pressure valves for liquid-chemical tanker trucks was awarded a $7,200 job grant in 2007 to relocate to Indian River County and hire six local employees. Employment at the company has grown to 27 people and it just received another $77,000 grant to help hire 20 more workers and move to a bigger facility in the county.

Parker Hannifan, which makes large industrial hoses, has grown from 49 to 72 employees, Caseltine said.
 
Manufacturing jobs, noted Caseltine, offer an attractive wage compared to some other industries. While the typical wage in Indian River County is $34,700, Caseltine said manufacturing wages average in the range of $38,000 to $40,000.

Indian River County Commissioner Chairman Bob Solari said changes made to the county's job grant program, which significantly increased the amount of money available per job, helped spur more economic development in the county. In the 2 years since the changes were made in March 2009, the county has approved nine grants. The 2 years before the changes were made Girard was the only one to receive money through the jobs grant program, Indian River County Community Development Director Bob Keating said.
 
"We are being a lot more proactive," said Solari, who spoke of commissioners willingness to go out of their way to try to bring business into the county.

Some of the Treasure Coast's advantages in attracting manufacturing jobs include its climate, affordable real estate, a large employee base with the general skills needed in manufacturing as well as programs at Indian River State College designed to prepare students for careers in the field.

Solari also mentioned low tax rates and a good infrastructure, such as good roads and water and sewer system, as some of the other positives that Indian River County has when it comes to attracting businesses. Solari said the county will get more than its share of the job growth when the U.S. economy recovers.
 
It can be difficult, however, to maintain a talented workforce.

At an Oct. 18 meeting, manufacturing leaders told U.S. Rep. Tom Rooney they had trouble finding qualified workers.

One of the people who is helping to match job seekers with employers in the Treasure Coast, including finding new jobs for those laid off by Piper, is Soma Melnick, board chair of Workforce Solutions.

Melnick has had an even more direct involvement in dealing with manufacturing job losses as vice president of human resources and administration for Macho Products Inc., and MDI Products LLC.

At one time, the firms employed about 200 workers at their shared facilities west of Sebastian off County Road 512. Now, there are only about 40 employees locally because the companies started manufacturing their products in China in 2006 and 2007. Macho makes martial arts gear and protective equipment for law enforcement, while MDI's foam products have been involved in the production of some well-known footwear.

Melnick said the move to China was needed to lower production costs.

"We couldn't have stayed alive in the marketplace if we hadn't moved manufacturing, it's as simple as that," she said.

There have been reports that some manufacturers are starting to move back from China as wages have gone up there along with transportation costs to ship the products to the U.S. Melnick said she has heard these reports, but said MDI Chief Executive Officer Amir Shadab has indicated the local company's jobs won't be returning to the U.S. soon. She said he negotiated a deal with the Chinese manufacturer that holds the line on prices, she said.

While Piper's employment is dropping, Caseltine said she has been in discussion with another aviation related company that could bring about 100 jobs to the Vero Beach or Sebastian airport. Piper also said while it has suspended its Altaire light business jet program, it is stepping up product improvements for its other products. Another initiative by the company, called Design by Piper, will provide engineering and technical support to other companies to make use of some of the employees who had been working on the Altaire program.

Indian River top manufacturers

Here is a list of some of the top manufacturers in Indian River County and the number of employees:
Piper Aircraft Inc.: 799
Novurania of America: 120
SpectorSoft Corp.: 82
Parker Hannifin: 72

Manufacturing decline

Nearly five million manufacturing jobs have vanished from 2000 to 2009 according to the U.S. Census Bureau. Here's a look at how the differences between 2000 and 2009.
Location......................Jobs in 2000................Jobs in 2009..............Decline/Gain
U.S. ............................16,473,994..................11,632,956...............-4,841,038
Florida..............................415,435......................294,519...................-120,916
Brevard County...................17,730........................19,994.......................2,264
Indian River County...............2,668..........................1,805........................-863
Martin County.......................2,534.........................2,444..........................-90
Okeechobee County................151............................215...........................64
Palm Beach County............23,582........................11,166....................-12,416
St. Lucie County..................2,768...........................2,408........................-360
Source: U.S. Census Bureau

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