Monday, July 26, 2004

Ohio Jobs

Since the onset of the sluggish economy many months ago, no region has seen job loss statistics comparable to the Rust Belt, in general, and Northeast Ohio, in particular. Listening to candidate John Kerry over the past year, however, one would think that just about everyone is unemployed and there is no hope unless a Democratic administration is elected. The theme is heralded by the major media, most notably the Cleveland Plain Dealer, which consistently headlines negative job news while burying the successes and positive signs deep within. On balance, the negatives have been greater than the positives with regard to jobs, but the overall picture being painted by the media and the Democrats is all black when, in reality, it should have a smattering of bright colors.

Without breaking a sweat, I recently found the following positive business news sprinkled, buried, or largely ignored by the media.

Medical device manufacturing and engineering is the specialty of Astro Instrumentation LLC of Strongsville and the company has seen consistent growth and increased revenue over its 4-year operating life.
Since opening a 40,000-square-foot plant last year in Strongsville, Astro Instrumentation LLC has almost doubled in size by adding 42 employees to its manufacturing, engineering, testing and customer service departments. More new jobs are expected before the year's end at Astro, which now has 90 employees.
Roy Rodgers, Astro's co-founder, has stated that the company hesitates to announce how many jobs will be created since expansion plans have not been completed.

Looking to bring 300 jobs and a new research laboratory to Northeast Ohio is Clinical Research Management Inc. of Hinckley, home of founder Victoria Tifft. The company conducts clinical trials for bioscience companies and, according to Joanne Abbott, vice-president of business development,
[T]he company plans to expand in the next five years and sees Northeast Ohio as an untapped market with huge growth potential because there are many researchers here and a large patient population at the area's many hospitals. New jobs for the region could include statisticians, data analysts, accountants, marketing personnel, information technology experts, volunteer recruiters, lab technicians and physicians.
Ms. Abbott also stated that the company plans to build new facilities, including a research lab, on five acres it owns in Hinckley.

Strong demand for aluminum manufacturing has prompted several companies, including Indalex Aluminum Solutions in Girard and Exal Extrusion in Warren, to open and expand aluminum production facilities in the Youngstown and Mahoning Valley region. According to Walter Good, director of the Youngstown/Warren regional economic development action team, there are currently 18 aluminum extrusion operations employing over 1,800 workers in the region. With the aluminum industry profits soaring, it's expected that many new people will be hired from a regional labor force that has proven itself to be adaptable to new machinery and production methods.

Striking and impressive is the latest report from Lincoln Electric Holdings Inc. of Euclid which manufactures welding products and sells to the entire world. In the last quarter, Lincoln's sales were the highest ever in the 109-year company history. As a result, 200 new workers have been added to local operations bringing the total to 2,900. In addition, Lincoln spokesman Roy Morrow stated that:
[T]he company has added a fourth shift at its Mentor plant, which now runs 24 hours a day, seven days a week. He said some Lincoln workers are putting in 45-hour work weeks.
Strong demand in the domestic and international markets pushed Lincoln to a 67 percent higher net income and the sales record, according to John Stropki Jr., president and CEO.

A few months ago, I reported on the success of KraftMaid which is expanding its operations in Northeast Ohio. The KraftMaid story is heartening as are the stories I report today. Critics would have everyone believe that they represent dribs and drabs and I would strongly disagree. Collectively, the successes in Northeast Ohio represent a vibrant and creative business community going through transition, replete with opportunity and a promising future.

Two important facets of the business situation in NE Ohio are worthy of emphasis. First, each case outlined is a success because of the innovation and entrepreneurship of the owners and managers and has little to do with any direct government involvement. In fact, businesses generally do better if government just stays out of the way.

Secondly, a most precious theme of this week's Democratic National Convention in Boston will be the dismal job situation across the U.S. with special emphasis on the Ohio job situation. Congresswoman Stephanie Tubbs-Jones has already scripted her speech for tonight to describe how miserable life is in NE Ohio. Congressman Dennis Kucinich will be given time to echo her sentiments. Expect from neither the whole picture. They'll cherry-pick all the problems and ignore any positives. Al Gore and John Kerry are also sure to pound their fists in the air about jobs, jobs, jobs.

What can be believed is that the job situation in NE Ohio is in transition and not nearly as gloomy as it will be (and has been) portrayed. There are successes and there will be more despite what is said from the podium at the Fleet Center. There are reasons to be optimistic.

And one last thing, don't believe for a second that raising taxes (or, 'roll back the tax cut' - the way the Democrats disguise the tax increase they desire) in any way is beneficial to business.

[Rev. 7/27] Changed title.

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