[David Foster has again been kind enough to take seriously my request for guest blogger content. I wish more of you would. There’s so much going on out there that, even if it weren’t for my time constraints, I couldn’t handle it all.]
A FOUNDRY SAYS FAREWELL
For 60 years, Gregg Industries, a subsidiary of Neenah Enterprises, has run a foundry in a Los Angeles suburb. Employing 200 people, the foundry made components like engine and turbine casings, for companies like Honeywell and Caterpillar.
Last Wednesday, the plant closed down. It’s not because of a lack of business–the work will be moved to another Neenah facility, probably in Wisconsin or Pennsylvania. Primary cause of the closure is continuing problems with local air quality regulators, who say the foundry violates standards on odor even after the expenditure of $3 million to mitigate the issue. But that’s not the only reason. “I think there are so many special interests in California, there is no common interest,” said Neehah CEO Bob Ostendorf. “It’s just a lot easier to do business on the electrical costs, lot easier to do business on the environmental costs, lot easier to do business on the quality of work-life costs (OSHA),” outside of California, he says. “I love the state, I love the people…but you sure as heck can’t do business here.”
Another company mentioned in the article is a much newer enterprise called Metalast, founded in 1993 and described as “a metal finishing company that has moved into “green” chemical solutions for companies like Lockheed Martin, Northrop Grumman, and Boeing.” The writer observes that “these are exactly the kinds of jobs Governor Schwarzenegger has been touting as being California’s future.” But when Metalast wanted to expand and build, founder/CEO David Semas decided to move to Nevada. “Between taxes and traffic and just the bureaucratic red tape required to build a business or build a technology center, in California it would add three years to the process, as opposed to building the same kind of technical center here in Nevada.”
The Democrats talk a lot about saving “good manufacturing jobs,” but when it comes to maintaining an environment in which manufacturers can thrive, the “progressive” wing of the Democratic Party–which now by far the dominant obstancle in that party–is usually the greatest obstacle.
I fear that the “progressives” are going to do to the country as a whole the same kind of damage hat has already been done to California.
link via ShopFloor