By Kirk Johannesen, The Republic
kjohannesen@therepublic.com
Indiana lost 17,108 manufacturing jobs over the past year, but Bartholomew and Decatur counties are bucking that trend with companies expanding or creating jobs.
State manufacturing jobs sank to about 677,000 during the 12-month period that ended in March, a 2.4 percent decrease, according to the 2007 Indiana Manufacturers Directory published by Illinois-based Manufacturers' News Inc.
That decrease topped declines ranging from 1 percent to 2 percent over the past three years, according to the directory, which surveyed more than 11,000 state manufacturers.
However, Honda Motor Co. has started building a new factory in Greensburg that will employ 2,000.
Columbus-based Cummins Inc. announced in October that it will invest $250 in Cummins Engine Plant and add 600 to 800 jobs to build a new light-duty diesel engine for DaimlerChrysler, starting no later than 2010.
Investment, growth
"Companies are continuing to expand and invest in the community and invest in jobs. I don't think Columbus has felt the impact. I think our companies are healthy and growing," said Corey Carr, president of Columbus Economic Development Board.
At least six other companies in Bartholomew County have received tax abatements in recent years for expansion projects.
That's a significant change from early in the decade. In October 2002, Cummins announced that it would shift its heavy-duty engine assembly from Plant One to Jamestown, N.Y., costing Columbus 200 jobs. In October 2003, Golden Castings Corp. closed the longtime Columbus foundry, costing more than 100 people jobs.
Carr said community organizations, such as Columbus Economic Growth Council, are working hard to make businesses successful.
He could think of only one manufacturing company that closed recently: Captive Plastics in Edinburgh, which produced health care, personal care, food and beverage containers, announced in February that it would close the plant, eliminate its 39 jobs and shift operations to larger plants.
Local manufacturing companies are doing well, Carr said, because they are diversified or aligned with good companies in the auto industry.
Cummins is involved with heavy- and light-duty diesel engines, has a mid-range engine plant and marine and power generation systems.
NTN Driveshaft and Enkei supply Japanese auto makers, which are doing well.
Skilled workers needed
Chris Berry, manager of Manpower's Columbus and Seymour branches, said plenty of manufacturing jobs are available locally.
She said the challenge is recruiting eligible, quality candidates.
"We still manage to get all of our placements filled, but the days of just sending anybody are done," Berry said. "You have to verify what a candidate can do, reference checking and drug screening."
She said manufacturers are concerned about where to get the qualified candidates over the next two years.
Gov. Mitch Daniels addressed those concerns in May when he launched the Dream It Do It campaign, which is intended to match advanced manufacturing jobs with skilled workers.
The goal is to align education, work force and economic growth strategies to provide career opportunities for young adults and skilled workers for business.
The program targets people ages 12 to 26.
In August 2006, Columbus Area Chamber of Commerce secured $235,000 from the state's Strategic Skills Initiative Grant Project, started by Indiana Department of Workforce Development at Daniels' urging.
The grant will aid regional technology companies that work with embedded systems by getting workers certified on the software in the systems.
Two-fold problem
Indiana's job losses have been spurred by the struggling auto industry and a manufactured housing decline.
The situation parallels those in neighboring states that rely on the automotive industry, said Manufacturers' News President Tom Dubin. Michigan saw manufacturing jobs drop 3.5 percent and Ohio recorded a 2.3 percent decline.
Illinois, which doesn't rely on the industry as much, had a drop of less than 1 percent.
Andrew Penca, commissioner of the state Department of Workforce Development, said the 17,000 jobs Indiana lost don't tell the entire story.
"The economy goes through natural cycles, and sectors grow and shrink," Penca said.
Indiana saw several automotive industry plants close or cut jobs in the past year. Guide Corp. announced last fall that it planned to close its Anderson factory, which employed more than 1,000 at the time. The factory closed in January. Delphi Corp. also will stop production at its Anderson factory this summer.
Visteon Corp. announced last week it would close its Bedford plant, where fuel delivery modules are made and 685 people are employed. Visteon said in February it would close its Connersville plant, which makes heating and air conditioning systems for several auto makers.
Also, Dana Corp., which produces products for the auto industry, closed its Mitchell plant earlier this year.
Northern Indiana's manufactured housing makers saw a slowdown because of a waning demand for homes and recreational vehicles, which had spiked after Hurricane Katrina, Penca said.
"The good news is, on the back end over the next several years, we've got new jobs coming on line that are either in the automotive industry or still in the manufacturing industry that will help offset those losses."
Positive signs
Penca said Indiana was the only state last year that had expansion announcements by three major automotive or transportation-related original equipment manufacturers.
In addition to Cummins and Honda, Toyota has started producing cars at a new assembly line in the Subaru of Indiana Automotive Inc. plant near Lafayette.
On Monday , Daniels and executives from Chrysler Group and Getrag Corporate Group announced plans for a $530 million dual clutch transmission plant in Tipton, which will create about 1,400 jobs.
It will manufacture 700,000 transmissions annually and is expected to begin operating in 2009.
"That's promising and that certainly helps swallow some of the tough news we hear," Penca said.
In addition, the Indiana manufacturing sector saw in April its first monthly jobs increase since June 2006, according to the state Department of Workforce Development.
Overall, though, Dubin, the president of Manufacturers' News, said he's seen a steady decrease in manufacturing jobs since Sept. 11, 2001.
"It seems like the blip has been when it hasn't," he said. "It's kind of been a small, steady trickle of jobs both in Indiana and nationwide."
The Associated Press contributed to this report.