At a glance

    A snapshot of companies in the area that are cutting jobs, laying off employees or taking other significant measures to reduce costs because of the slumping auto industry and global recession: 

  • Aisin USA Manufacturing - Seymour-based company cutting 20 percent of salaried work force by the end of January. Has cut 300 through attrition and laying off temporary workers. The employer of more than 1,600 reported sales declines of 15 percent from 2007 to 2008, and projects another 15 percent drop this year. Voluntary exits included enhanced severance and extended benefits packages.

  • Baldor Electric Co. - Leaving 900 jobs unfilled over the next six months at its 28 plants worldwide, including its 10th Street plant in Columbus where 185 are employed. Attrition has claimed 475 employees so far. Savings estimated at $30 million.

  • Cummins Inc. - Cutting at least 1,400 professional jobs worldwide, through voluntary retirements and involuntary cuts, to reduce costs and bring the business model in line with production. Cut 600 in December, including 200 in Bartholomew County. Announced Tuesday it would cut another 800 professionals by the end of February. Has cut about 700 hourly employees worldwide, but none in Bartholomew or Jackson counties. Also has cut 2,500 temporary workers and eliminated discretionary spending.

  • Enkei America - Cut about 60 temporary workers the first full week of January. Previously cut about nine professionals or managers, and since September has not filled 50 jobs that are open because of attrition. Had an extended holiday shutdown. Enkei employs 690 and manufactures and sell aluminum wheels.

  • GECOM Corp. - Extended normal holiday shutdown by two weeks for 45 employees from its Greensburg and Frankfort, Ky. plants from Dec. 8 to Jan. 5. Announced in August it would close its North Vernon plant, NAC Inc., which employed 136, because of declining sales.

  • Irwin Financial - 38 employees cut, but company won't comment now because it's in a "quiet period."

  • NTN Driveshaft - Columbus plant cut employees' work week from 40 to 28 hours (four seven-hour days). Employs 1,300 and supplies continuous velocity joints to all major automotive companies in North America.

  • TWB Co. - Transferring operations from plant in Woodside Industrial Park to its plant in Monroe, Mich. Move affects 41 employees. Supplies automakers such as Ford, General Motors and BMW Group with laser-welded sheets of steel that improve structural integrity in vehicles. makes door locks, latches and lift gates.

  • Honda Motor Co. - Reducing production at its North American plants, including the new one in Greensburg which makes Civic sedans. No jobs being cut and no employees laid off, but nonproduction days being used to reduce costs. Greensburg plant employs 915. One production shift makes about 200 Civics daily. Original goal was to make 400 daily and hire another 1,000 workers by the end of 2009.

  • Impact Forge - Laid off 60 in December. Layoffs at the Columbus plant came from various departments. The layoffs follow a dozen layoffs over the previous four months. Employs about 200 and makes vehicle and industrial parts for engines, transmissions and drivetrains.

    • By Kirk Johannesen, The Republic

    johannesen@therepublic.com

        Cummins Inc.'s decision to cut at least 800 professionals worldwide - its second cut in two months - demonstrates how the slumping U.S. automotive industry and global recession is hitting home. 

        The Columbus-based Fortune 500 company, which cut 200 professionals from Bartholomew County in December, is reacting like other companies in the area by trying to keep costs down to offset decreased demand for products. 

        Eliminating discretionary spending, overtime and temporary workers have become initial lines of defense for keeping companies afloat. 

        More drastic measures include reducing workers' hours or production days, and cutting full-time positions. 

        Companies such as Aisin U.S.A. Manufacturing and Honda Motor Co., which are part of the foreign auto industry, have taken significant actions, such as reducing the work force or scaling back production. "The recession we're in got deeper and broader and longer than we thought," said Mark Gerstle, Cummins chief administrative officer. 

        Mayor Fred Armstrong believes the full impact of the recession has not been felt yet in Columbus. He said in December he thinks "rock bottom" is still six to eight months away, and in that period one or two companies in the city could fold. 

        On Friday, TWB Co. announced it is transferring its operations at Woodside Industrial Park to its plant in Monroe, Mich., because of the struggling automotive industry. The move affects 41 employees. 

        Also Friday, Circuit City announced it is closing its stores nationwide, including the Columbus store. 

        Concern is rooted in the fact that a significant portion of jobs in Columbus are tied to the auto and auto parts industries. 

        Armstrong cited a presentation by an economist at The Brookings Institution that said 2,823 jobs in Columbus, or 6.4 percent of the total, are tied to Detroit automakers Ford, General Motors and Chrysler, the second-highest rate in the state behind Kokomo (22.2 percent).

    Community strategies 

        Counties have diversified the types of companies in their communities so they do not have to rely as much on the auto industry. 

        "The initial thought is to continue looking at industries that may be affected less, principally because construction costs are down," said Corey Carr, president of the Columbus Economic Development Board. 

        Companies in the wind power and medical devices industries are being pursued, Carr said. 

        Columbus' proximity to hospitals and Indiana's cluster of medical device companies make that industry attractive. 

        Some Indiana communities are investing in wind power, and the idea is to manufacture necessary parts in Columbus. 

        Decatur County, which welcomed Honda's new auto production plant, also is trying to diversify because it is "tightly tied" to the auto industry, said Vicki Kellerman, executive director Greensburg/Decatur County Economic Development Corp. 

        She is pursuing companies in the life sciences area, such as pharmaceutical companies or suppliers. Distribution and logistics, and value-added agriculture products are being targeted, too.

    Positive signs 

        Now is not the time for communities to slow down trying to gain business investments, according to Carr. 

        "This is a particularly good time to invest because available labor is up and costs are down," Carr said. 

        Also, the amount of time required to attract a company and get it to build in the community will take longer than the length of forecasted economic trouble, he added. 

        Despite layoffs and job cuts in the area, investment is continuing. 

        In 2008, $53.5 million in investment was proposed by companies in Jackson County, said Jim Plump, executive director Jackson County Industrial Development Corp. 

        Schwarz Pharma, a pharmaceutical manufacturer in Seymour, announced a $12 million investment and the addition of 25 jobs. 

        Lowe's Distribution Center, Jennings County's largest employer, is hiring, said Kathy Ertel, executive director Jennings County Economic Development. 

        Columbus Enterprise Development Corp. is experiencing an increase in individuals entering its entrepreneurial share," he said. 

        Enkei, which makes aluminum wheels and employs almost 700, has been cutting overtime and discretionary costs, and leaving jobs unfilled.

        "We do think we're through the worst of it, and because we have tightened our belts we will be better off for it," Merkel said.
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