SRC brings in 20 manufacturing jobs from Mexico

News last week of a Springfield manufacturing plant's expansion plans is certainly a glimmer of light for a faltering local industry. But of greater significance is the reason for SRC Automotive Inc.'s 40,000-square-foot expansion and 20 new manufacturing jobs: the Springfield remanufacturer is pulling in work from Mexico.

Mexico has been a magnet for U.S. manufacturers, including former Ozark employer Fasco Industries, because of its cheaper labor. SRC has turned the tables.

"We've been able to take away business from Mexico," said Jack Stack, president and CEO of SRC Holdings Corpora-tion, which owns SRC Automotive.

According to Stack, a major American auto manufacturer, which he declined to name, selected SRC Automotive over a plant in Mexico due to unsatisfactory work coming in across the border.

"This is the first time I know of that we've actually seen business come in the other way which is unusual," he said. "We're anticipating some additional volume as a result."

To handle the work SRC is investing $1.2 million for the new production space at its northwest Springfield plant at 4431 W. Calhoun St.

The company's 110 employees, who will welcome 20 new employees within the next six months, remanufacture engines for the auto and marine markets at the 66,000-square-foot plant.

The new hires will be entry-level production positions and warehouse and maintenance staff, said Travis Morrison, SRC Automotive human resources director. The starting hourly wage is about $9.50, he said.

While it's only 20 jobs compared to the region's loss of 2,800 manufacturing jobs since January 2001 it's a sigh of relief for a very tense marketplace, said Rita Needham, executive director of Southwest Area Manufacturers Association.

"We're coming out of two years of having downward trending," Needham said, "This is certainly a good indication that things might be turning around."

However, Stack downplays the positive news because of too many unknowns lingering in the global market.

"I don't think this is leading us out of recession. There are too many wild cards out there to be optimistic," he said, citing situations with Iraq, North Korea and health care.

"We are seeing some signs of recovery right now," Stack said, but added, "It's still too early to tell."

SRC is not a member of the Southwest Area Manufacturers Association, but reports from SAMA's 50 member companies indicate production orders in January and February have been up, relative to recent months, according to Needham.

But increased production is common for those months, she added, as distributors and retailers rebuild their inventories following the holiday months.

"We are starting to see some upward trending," Needham said. However, her members question if the early upsurge is here to stay.

The employee-owned SRC Holdings Corp. has been a rarity among Springfield manufacturers in that its employee base has been a steady 900 or more employees since 2000. Furthermore, the number of SRC locations increased from 15 in 2001 to 22 last year proving that the company is weathering the storm.

Stack credits the employees who own the company.

"It goes back to the flexibility of the work force," he said. "Our work force is not only capable, but willing to do a lot of different jobs, which is necessary in a recession. We have really good business people that understand what you've got to do to survive."

SRC Automotive clients include General Motors and Mercury-Marine. Morrison said sales were flat in 2001 and 2002, but the company forecasts 9 percent growth for 2003.