Saturday, March 7, 2009

Company closure means loss of work for MHMR assembling business

From The Tribune-Democrat in Johnstown, Pa.:

SOMERSET, Pa. — When Gilmour Manufacturing Co. closes its doors by year’s end, the county will lose one of its largest employers.

But the impact also will extend to more than 100 employees who never have worked for the company.

At a nearby facility operated by Bedford-Somerset Mental Health and Mental Retardation, disabled clients earn a wage while assembling products for various businesses.

Gilmour provides about 90 percent of those products, so the company’s closure will leave the MH/MR office and those who depend on the agency in a bind.

“Now, we’ve got to find new work for them to be able to do,” said Randy Hay, MH/MR administrator.

Gilmour Manufacturing, which specializes in hoses and related accessories,
has had a relationship with the MH/MR workshop for more than three decades.And
agency administrators say they are “extremely appreciative” of the company’s
commitment through the years.

But they also know that, without Gilmour, the workshop’s annual production
will take a hit estimated at $200,000.

“This is going to be a big impact,” Hay said.

Because Gilmour is not closing immediately, MH/MR leaders still have some time to try to find alternative contracts.Administrators will attempt to maintain production at the workshop, which provides employment for those who may not otherwise be able to find a job.

The benefits extend beyond a regular paycheck, Hay said.“For them, it’s a big self-confidence boost,” he said.

Hay also acknowledges, though, that finding companies who are willing partners is not easy.

“It’s always difficult, just because so much of this stuff is being sent overseas,” he said.

At Somerset County Blind Center, Rob Stemple understands Hay’s dilemma. Center administrators have worked hard to keep production steady at their workshop.

The blind center also worked with Gilmour. That ended in 2005, Stemple said, because it was clear that the company was declining.

“We just weren’t getting enough work from them to really keep our people busy,” Stemple said.

Both Stemple and Hay expressed sympathy for the 330 workers who are directly employed by Gilmour.

“I feel so bad for them,” Hay said. “Because that affects so many families.”

Until now, the nation’s economic woes had not led to any major closings in Somerset County, said Jeff Silka, executive director of the county’s economic development council.“Whenever you lose over 300 jobs, there’s no way to candy-coat that,” Silka said. “It’s going to be felt throughout the regional economy.”

Silka said county officials were not notified in advance that the Gilmour plant would be closing. But such notification may not have made much difference because the decision was made by Gilmour’s parent company, he added.

“I just don’t think there’s anything we could have done locally,” Silka said.