Saturday, May 01, 2004

Job Growth in Ohio

In John Kerry's most recent campaign swing through Northeast Ohio, he pumped up the crowds with his promises of jobs, jobs, jobs while stating that the Bush administration's job creation record is the worst since Herbert Hoover. The gathered supporters were enthusiastic. It's understandable since Ohio is one state hit hard by loss of manufacturing jobs through relocations to foreign countries. However, the Bush administration has said that the economy is in recovery and new jobs will ultimately be created to replace those lost. Although it most likely won't be mentioned by the Kerry campaign, there is at least a hint in NE Ohio that the manufacturing job market is on the rebound.

Due to low interest rates in the recent past, one industry that has been relatively stable during the economic downturn has been housing and housing construction. In fact, the housing market is robust enough that there is increased demand for custom-made kitchen cabinets. As a result, an Ohio manufacturer, KraftMaid Cabinetry Inc., is planning to hire as many as 900 new production employees at their facilities in Middlefield in Geauga County and Orwell in Ashtabula County. KraftMaid, a division of Masco, has allocated $25 million to expand those plants to meet expected continued increase in demand for their products which has already jumped fourfold in the last seven years. The total number of employees doubled during that time and, with the additional 900, the workforce will total about 4,500.

The success story of KraftMaid would be understated without mentioning other aspects. First, besides offering good paying entry level positions, KraftMaid also relies upon their well-paid skilled workers and great craftsmen. And, the influx of revenue to several communities is noticeable.
[E]xpansion is coming as the Grand Valley school system is building a K-12 campus across from the Orwell cabinet factory, prompting plans to replace a wastewater collection system, build a new water tower and widen Ohio 45. The Ashtabula County Transportation System says it may add bus service from the northern part of the county to the KraftMaid plant in the southwestern corner.
So, it's easy to see a trickle around effect of KraftMaid's success. It's also interesting to note that the Middlefield facility alone currently employs more people (2,700) than live in the town (2,230) which means that many workers must commute from neighboring communities.

In summary, the job market in Ohio is not all doom and gloom. There is at least the success of KraftMaid to offer hope for more job creation and lend credence to President Bush's assertion that the economy is recovering.

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