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Springfield, MO
While they acknowledged the devastating economic impact of Cargill Value Added Meats’ plans to close two center-city Willow Brook Foods processing plants and lay off 780 employees, they also pointed to a communitywide network of resources that’s grown and matured since the Zenith layoffs.
(Related: I Survived Zenith: Two workers laid off by Zenith more than 15 years ago share their stories of re-entering the work force.)
Within four to six months, Wichita, Kan.-based Cargill will transition the turkey-processing operations from Willow Brook facilities in Springfield to plants in California, Mo., and Springdale, Ark. Willow Brook’s plants at 501 N. Main Ave. and 405 N. Jefferson St. will close, marking what many believe is the second-largest layoff in Springfield history.
The first, by far, was when Zenith shut down its East Kearney Street plant – the last one operating in the United States – and shipped local jobs to Mexico in the early 1990s. Cargill has said that it can accommodate 300 Willow Brook workers – 150 each at its plants in mid-Missouri and northwest Arkansas – if employers are willing to relocate.
Members of a local team coordinating the response to the plant closings, however, say most Willow Brook employees losing their jobs will likely stay in Springfield. Their challenge now is to help those people transition into other jobs, enroll them in state-supported retraining programs or assist them in entrepreneurial endeavors.
Right now, though, officials are advising them to stay put. Those who quit before Cargill pulls the trigger could lose out on a variety of benefits, including unemployment insurance, said Bill Dowling, director of work force development at the Missouri Career Center.
“The benefits side – I think – is the biggest fear for them,” Dowling said. “It’s mostly a fear of the unknown.”
Cargill, which acquired Willow Brook for an undisclosed amount from president Mike Briggs, spent little time debating what to do with the Springfield plants but delayed the closings to give employees more time to find jobs, company spokesman Mark Klein said.
“It was always clear that the two plants would close, and that is because they are very old,” he said. “We would have to invest tens of millions of dollars to bring them up to our standards.”
The upside of Zenith
Jim Anderson, president of the Springfield Area Chamber of Commerce, still remembers the day Zenith plant manager Terry Conner called to invite him to lunch.
During the meal, Conner told Anderson that later that afternoon Zenith would announce its plans to close the plant and lay off 1,500 employees. After a full day of media interviews, Anderson said business and community leaders “powwowed” in an effort to find employment for the displaced workers and a buyer for the Zenith plant.
Bass Pro Shops ultimately bought the 2-million-square-foot building and converted the property into what is now Sportsman’s Park, a sprawling corporate headquarters for the outdoor goods retailer.
The Zenith predicament also prompted the formation of Partnership Industrial Center, a master-planned industrial park in northeast Springfield. Although the public-private partnership behind PIC was controversial at first, Anderson said the park has strengthened Springfield’s economy by attracting a diverse group of manufacturers and transportation companies that supply about 2,400 jobs.
The Zenith plant closing also helped cement the role of Ozarks Technical Community College in the community.
Although still in its infancy, OTC provided numerous options for those laid off by Zenith, including GED courses and short-term vocational training, said Sue Moore, the school’s dean of industry and extension services. At least two former Zenith workers – Gail Garton and the recently retired Jim Posey – ended up at OTC as instructors, said Shirley Lawler, associate vice president of academic affairs and work force development at OTC.
“We have some others who were victims of the Zenith layoff, and they retooled because there were funds available,” Lawler said.
Manufacturing stability
Rita Needham, executive director of the Southwest Area Manufacturers Association, said she’s hopeful the laid-off Willow Brook employees can find work with other local manufacturers.
Needham said some of the displaced workers might be able to transition into jobs in the stainless steel fabrication industry, which has a large presence in the Ozarks. Still, she is concerned about other manufacturers facing the same challenges that forced Willow Brook’s Briggs to sell the company. Briggs, who could not be reached for comment, cited high feed and energy-related costs as reasons for selling.
Needham said SAMA member companies in Ava and Lebanon are facing $1 million utility cost increases this year based on new rates implemented by Sho-Me Power Electric Cooperative.
Earlier this year, Wisconsin-based Regal Beloit Corp., which manufactures power-transmission products, laid off 60 employees who worked at its plant on East Sunshine Avenue. The Career Center’s Dowling said he thought the job cuts were part of a cyclical staffing pattern at the plant.
The Career Center has enjoyed good success in helping workers laid off by Fasco and Northrop Grumman find local jobs in the manufacturing sector, Dowling said. He said the prospects for Willow Brook employees look good right now.
“Many companies have contacted us already, saying they’re interested in hiring the workers,” he said.
Companies include Harter House, CoxHealth, Transland and JPMorgan Chase.
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
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