Post by unlawflcombatnt on Jan 18, 2010 21:32:09 GMT -6
from Economy in Crisis:
A GM Factory With 2,100 Workers Closes,
And 33,000 Other People Lose Their Jobs
by Richard McCormack
January 18, 2010
(The following article originally appeared on Manufacturing and Technology News.)
"The economic impact caused by a single, large manufacturing plant closing in America is massive, according to research conducted by the Institute for Research on Labor, Employment and the Economy (IRLEE) at the University of Michigan.
In a case study on the closure of the General Motors Moraine Assembly Plant in Montgomery County, Ohio, IRLEE director Marian Krzyzowski and associate director Lawrence Molnar found that for every hourly job lost 15 jobs in the economy disappeared with it.
GM closed its 4.1 million-square-foot Moraine Assembly operation in late 2008, laying off 2,170 hourly workers. The event led to the loss of another 10,850 indirect jobs (for a total of 13,020 jobs lost) in the immediate vicinity of the plant.
But job losses cascaded through GM's supply chain, with the elimination of another 3,334 jobs: DMAX laid off 645 workers; Jamestown Industries laid off 80 workers; Johnson Controls laid off 130 workers; PMG Ohio laid off 70 workers; Plastech laid off 88 workers; four Delphi plants that supplied Moraine laid off 2,120 workers; Tenneco laid off 118 workers; and EFTEC laid off 83 workers.
As a result, the total number of indirect jobs lost due to the Moraine plant shutdown was 27,520.
In all 33,024 workers were impacted by closing 1 large factory.
The economic cost was monumental. By calculating the loss of 2,170 GM jobs at $100,000 each and the 10,850 indirect jobs lost at $45,000, the total economic impact to the regional economy from the GM Moraine Plant closure was $705,250,000.
"For every 1 direct job lost, 4 [more] people are affected by loss of livelihood, insurance, etc.," so that the total number of individuals affected was 52,080, write the researchers in a presentation to the Federal Reserve Board of Chicago."
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About the Author (Richard McCormack)
Richard McCormack is editor and publisher of Manufacturing & Technology News, a publication he created in 1994. The publication is read by executives in industry, government and academia on five continents. Mr. McCormack is an active journalist covering the profound financial and economic ramifications of the shift of industrial capability from the United States to Asian competitors. He has written thousands of articles on outsourcing, industrial and technological competitiveness, government policies, and trends related to management, quality, technology and markets.
Mr. McCormack was founding editor of High Performance Computing and Communication (HPCC) Week in 1991. He covered the people and companies that were making massive investments in digital optical telecommunications and the shift of supercomputers to the desktop, leading to the commercial birth of the Internet.
Mr. McCormack was the founding editor of New Technology Week in 1987. He covered the U.S. government and industry response to the competitive challenge posed by the Japanese, including the creation of Sematech and the National Center for Manufacturing Sciences. Prior to that, he was a reporter and became editor of The Energy Daily, where he focused on coverage of the nuclear power and electric utility industries.
As a Washington, D.C.-based journalist, Mr. McCormack has covered science, technology, industry and government for 27 years. He has won numerous awards for his reporting. He has interviewed such people as Robert Noyce, the inventor of the integrated circuit; Frank Whittle and Hans von Ohain, inventors of the jet engine; Seymour Cray, inventor of the supercomputer; Gordon Moore, inventor of "Moore's Law"; Vinton Cerf, inventor of the Internet; Douglas Engelbart, inventor of the computer mouse; and Edward Teller, inventor of the thermonuclear bomb.
Mr. McCormack is author of the 2002 book "Lean Machines: Learning from the Leaders of the Next Industrial Revolution." He is author and editor of the 2009 book "Manufacturing a Better Future for America." His work has appeared in hundreds of news and Web journals, and has been cited by such publications as The Washington Post, New York Times and the Wall Street Journal. His articles have been ready by millions of people throughout the world. He has appeared on CNN, C-SPAN and PBS. He has testified before Congress and has given dozens of speeches throughout the country.
A GM Factory With 2,100 Workers Closes,
And 33,000 Other People Lose Their Jobs
by Richard McCormack
January 18, 2010
(The following article originally appeared on Manufacturing and Technology News.)
"The economic impact caused by a single, large manufacturing plant closing in America is massive, according to research conducted by the Institute for Research on Labor, Employment and the Economy (IRLEE) at the University of Michigan.
In a case study on the closure of the General Motors Moraine Assembly Plant in Montgomery County, Ohio, IRLEE director Marian Krzyzowski and associate director Lawrence Molnar found that for every hourly job lost 15 jobs in the economy disappeared with it.
GM closed its 4.1 million-square-foot Moraine Assembly operation in late 2008, laying off 2,170 hourly workers. The event led to the loss of another 10,850 indirect jobs (for a total of 13,020 jobs lost) in the immediate vicinity of the plant.
But job losses cascaded through GM's supply chain, with the elimination of another 3,334 jobs: DMAX laid off 645 workers; Jamestown Industries laid off 80 workers; Johnson Controls laid off 130 workers; PMG Ohio laid off 70 workers; Plastech laid off 88 workers; four Delphi plants that supplied Moraine laid off 2,120 workers; Tenneco laid off 118 workers; and EFTEC laid off 83 workers.
As a result, the total number of indirect jobs lost due to the Moraine plant shutdown was 27,520.
In all 33,024 workers were impacted by closing 1 large factory.
The economic cost was monumental. By calculating the loss of 2,170 GM jobs at $100,000 each and the 10,850 indirect jobs lost at $45,000, the total economic impact to the regional economy from the GM Moraine Plant closure was $705,250,000.
"For every 1 direct job lost, 4 [more] people are affected by loss of livelihood, insurance, etc.," so that the total number of individuals affected was 52,080, write the researchers in a presentation to the Federal Reserve Board of Chicago."
-------------
About the Author (Richard McCormack)
Richard McCormack is editor and publisher of Manufacturing & Technology News, a publication he created in 1994. The publication is read by executives in industry, government and academia on five continents. Mr. McCormack is an active journalist covering the profound financial and economic ramifications of the shift of industrial capability from the United States to Asian competitors. He has written thousands of articles on outsourcing, industrial and technological competitiveness, government policies, and trends related to management, quality, technology and markets.
Mr. McCormack was founding editor of High Performance Computing and Communication (HPCC) Week in 1991. He covered the people and companies that were making massive investments in digital optical telecommunications and the shift of supercomputers to the desktop, leading to the commercial birth of the Internet.
Mr. McCormack was the founding editor of New Technology Week in 1987. He covered the U.S. government and industry response to the competitive challenge posed by the Japanese, including the creation of Sematech and the National Center for Manufacturing Sciences. Prior to that, he was a reporter and became editor of The Energy Daily, where he focused on coverage of the nuclear power and electric utility industries.
As a Washington, D.C.-based journalist, Mr. McCormack has covered science, technology, industry and government for 27 years. He has won numerous awards for his reporting. He has interviewed such people as Robert Noyce, the inventor of the integrated circuit; Frank Whittle and Hans von Ohain, inventors of the jet engine; Seymour Cray, inventor of the supercomputer; Gordon Moore, inventor of "Moore's Law"; Vinton Cerf, inventor of the Internet; Douglas Engelbart, inventor of the computer mouse; and Edward Teller, inventor of the thermonuclear bomb.
Mr. McCormack is author of the 2002 book "Lean Machines: Learning from the Leaders of the Next Industrial Revolution." He is author and editor of the 2009 book "Manufacturing a Better Future for America." His work has appeared in hundreds of news and Web journals, and has been cited by such publications as The Washington Post, New York Times and the Wall Street Journal. His articles have been ready by millions of people throughout the world. He has appeared on CNN, C-SPAN and PBS. He has testified before Congress and has given dozens of speeches throughout the country.