Boris Ladwig, The Republic
bladwig@therepublic.com
Second of four parts
Columbus lost prestige and leadership when it lost the headquarters of a Fortune 500 company.
Columbus-based Arvin Inc. merged with Troy, Mich.-based Meritor Automotive Inc. in 2000. The merged company is based in Troy.
The community also "lost millions of dollars in corporate philanthropy (and) lost the community leadership of countless Arvin volunteer workers," said Brooke E. Tuttle, former president of Columbus Economic Development Board.
Former Arvin CEO James K. Baker, for example, won the 1982 Community Service Award for his "emphasis on community development and deep-seated concern for the individual citizen."
He also was president of the Foundation for Youth, where he led a successful building expansion program.
Even after the merger, the Columbus community felt ArvinMeritor Inc.'s philanthropy.
In October 2002, the company donated three buildings to United Way of Bartholomew County.
"ArvinMeritor has a longstanding commitment to support the communities in which we have a presence," said Larry Yost, ArvinMeritor chairman and CEO. "And we are committed to the Columbus area community. When we work together with organizations like the United Way to make a positive impact on the lives of those around us, we weave a strong future for all of us."
The move fulfilled a dream that United Way President Doug Otto had since the mid-1990s.
The idea was to have all agencies under one roof, Otto said, and shortly before the merger, Arvin CEO Bill Hunt seemed receptive to the idea of giving to the agency those three buildings with 200,000 square feet.
Hunt left the company before the deal was completed. It was finalized with an attorney from Michigan, Otto said.
"It has been a tremendous success."
The buildings house more than 40 agencies and more than 300 employees and daily welcome more than 400 people seeking assistance.
But Otto agreed that the community felt the loss of leadership after the merger.
Hunt was very involved in the community and served, among other activities, on the Heritage Fund board.
"At one time we had the headquarters of two Fortune 500 companies, and now we only have one. That certainly has an impact," Otto said.
Community-minded
Executives drove a community-mindedness throughout their organizations, he said, and though the merged company remains generous, the contributions aren't the same because of a decline of local high-paid jobs.
United Way still has an ArvinMeritor executive on its board, Otto said.
"(They're) certainly very good corporate citizens," and the corporate giving is in line with that of other companies that have plants in Columbus but are based elsewhere.
"I think their influence is as good as it can be" given that their headquarters are no longer here and given that they have sold some plants, Otto said.
"You don't see them as much as you used to, but again, there aren't as many of them."
'It always hurts'
Tuttle said the merger also "uprooted the income, benefits, careers and lives of Arvin workers."
"I think when you lose a headquarters, it always hurts," said Mayor Fred Armstrong.
"You always like to have that executive in your community."
Nonetheless, Armstrong said the city had good contacts in Troy after the merger.
If the city asked that someone from the company serve on a committee, the company would respond.
"It was just the presence wasn't here. It was a little tougher that way."
Coming Tuesday: The impact of ArvinMeritor's closing of the Franklin plant.