Trimming the deficit: Local job growth is slow, incremental
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Michael Trumpy lays a weld down at his job at United Alloy. Trumpy was hired on at the Janesville company in early July 2011.
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Julian Romack grinds burrs off the edge of a piece of metal he just removed from a laser cutter at United Alloy. Romack, classified as a Utility Operator, has only worked at the plant since mid-August 2011.
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JANESVILLE — Shortly after the start of the Great Recession in December 2007, Rock County suffered swift and severe job losses.
Drill down a little deeper, and the majority of job losses can be found in the county's manufacturing sector, long the county's economic bedrock.
Between December 2007 and November 2011, Rock County lost 8,800 non-farm jobs, according to the U.S. Bureau of Labor Statistics. That's a drop of 12.5 percent, far worse than the state as a whole, which experienced a 4.6 percent decrease in jobs during the same period.
While it's uncertain whether Rock County will ever fully regain its lost jobs, there have been gains in recent months as well as indications that companies are considering expanding or relocating here, economic development officials say.
About 5,000 of the local jobs losses—nearly 57 percent—came in the manufacturing sector. Statewide, the manufacturing sector contributed about 42 percent of the total losses.
Rock County's severe job losses primarily can be traced to two factors: the overall economic downturn and the collapse of the local auto industry.
As independent events, each would have been significant. When combined in 2008 and 2009, the job losses were catastrophic.
"Both shoes fell, and they fell at the same time," said James Otterstein, Rock County's economic development manager. "That really took a huge bite out of our manufacturing sector, particularly our durable goods manufacturing sector.
"We had nearly 30 plant closings in two years."
More than 3,000 jobs were lost with the demise of the local auto industry, anchored by the Janesville General Motors' plant and supported by its local legion of just-in-time suppliers.
Gradual gains
Local economic development officials such as Otterstein agree that the job losses were analogous to falling off a cliff: The drop-off was sharp, and the pain at the bottom was excruciating.
The recovery, they say, will be gradual, and there's evidence that it's started.
Several employers have added jobs in the last the last year or so. Several new companies have moved into the area. Unannounced deals are in the works to create even more.
In fact, Rock County added 1,700 jobs in the first 11 months of 2011. The year before, the county added 1,500.
Employers such as United Alloy, SSI, Prent, Evonik Goldschmidt and Data Dimensions all have added employees in Janesville. So, too, have Morgan Corp., Lowe's Millwork and HUFCOR.
Around the county, payrolls have grown at Kettle Foods, Stoughton Trailers, Freedom Graphics, Kerry Ingredients and Edgerton Gear.
"All of these businesses have added jobs," Otterstein said. "Granted, they go through cycles where employment levels fluctuate, but on balance the net job situation has been positive."
Most, he said, were done with little fanfare as companies added five or 10 workers. Others added 30, 70 or 110 over a period of months.
Other businesses have moved into the community and brought jobs with them. Melster Candies relocated from Cambridge to Janesville with 120 jobs and St. Mary's Janesville Hospital opened earlier this month with 325 new employees.
Fat Wallet fled tax increases in Illinois and moved its business and 55 employees to Beloit last year.
Still others are contemplating a move to Janesville.
The Janesville City Council has approved a tax increment financing package with the Walworth-based Miniature Precision Components that could lead to up to 90 distribution and light-assembly jobs in leased space at the Helgesen Industrial Center on Venture Drive.
NorthStar Medical Radioisotopes, a medical isotope maker, plans to break ground this year on a $194 million plant in Beloit that's expected to create more than 150 high-paying jobs by 2016.
SHINE Medical Technologies, another medical isotope manufacturer, announced Tuesday that it will build a plant south of Janesville that will require more than 100 hi-tech jobs that would pay in the neighborhood of $50,000 to $60,000 per year.
"The combined impacts of SHINE and NorthStar have the potential to assist with reshaping Rock County's manufacturing image," Otterstein said. "While technically still considered manufacturing, these projects represent the convergence of medicine, technology and production into a single offering.
"This type of clustering hasn't occurred in Rock County."
Change in direction?
Otterstein said it's refreshing to work on expansions and relocations rather than plant closings and mass layoffs.
"These announcements are reflective of the county's increasingly diversifying economic base," he said. "If you take a look at the 50-plus projects that have advanced since 2008, you can see the range of industry sectors—food processing, advanced manufacturing, logistics, health care and medical and information technologies—that have moved forward."
All are examples of activity that has or will shrink the jobs deficit.
"In my opinion, demand and sales create jobs," said Vic Grassman, Janesville's economic development director. "In the last couple of years, we've heard about companies sitting on a lots of cash because there wasn't the demand or the sales to warrant investment.
"Now, inventories are low, sales or commitment for sales are increasing, and these companies are recognizing the pent-up demand for their products, and they are looking to expand and hire people."
Grassman referred to these companies as survivors of the economic downturn that now see market opportunities that they're willing to invest in.
"What we're seeing in Rock County is really not that different than what's going on around the country," Otterstein said. "There's growth, but it's sluggish and on an incremental path.
"… There is more interest now in Rock County, and I would suggest that's because we've aggressively increased our competitiveness while some other areas have not. What that translates to remains to be seen."
Feb 1, 2012 at 7:45 p.m.
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Hate to burst anyone's bubble, but the Gazette shut the comments down. It wouldn't take any reasonable person long to see that the comments being offered were really getting very close to slanderous. Not to mention the statements that were just outright fantasy land and if true the gov't in various different forms would be all over them. But then the trolls would just say they were paid off by the company.
Feb 1, 2012 at 3:17 p.m.
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I tryed to find all the comments on the Stoughton Trailers planning on hiring 125 workers and found some.
Hard to beleive all comments were disabled unless they were all negative about Stoughton Trailers.
As I read in comments here, They don't want people to know how they treat their employees.
There is a great possibilty they don't and if so I would be interested to find out why they would feel that way and why not do some investigative report on what goes on at the Stoughton Trailer plant(s). Evansville would be a good start.
I used to work there and quit soon after I was hired for I seen what goes on there.
Would have been better off staying on unemployment and looking elsewhere.
I tryed to go back on unemployment after quitting but was denied.
The DWD U/I Benefit Department does not beleive that a person should quit their job if safety at the workplace is not being followed correctly by the company they work for.
The best course of action while still employed is to contact OHSA with all you know and have seen.
I am sure if you polled past and present employees of Stoughton Trailers
most would be negitive for working conditions are questionable.
Jan 31, 2012 at 1:11 p.m.
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not about high paying jobs its about fair paying jobs .
Jan 30, 2012 at 6:55 p.m.
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vatoloco - you are correct. But if a high paying job opens that requires turning lug nuts clockwise, then watch out - there will be a flood of applicants.
Jan 30, 2012 at 3:27 p.m.
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vatoloco - Exactly! Its hard to find people with just above common sense skills. And the younger people I know graduating are starved of basic necessary knowledge. I know Milton HS eliminated the auto class back in 96. Who cares if kids let their cars go to hell because they dont know the basic maintenance of one... its not like they cost much. Who cares kids graduate not knowing how to do their taxes... but hey, at least they read Hamlet. lol... so many examples its not even funny.
Jan 30, 2012 at 3:04 p.m.
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"From what I have been reading, there are many jobs that employers (in general, not necessarily here) have been trying to desperately fill for some time, but the skill set simply is not available"
Many people think that they can continue getting opportunities when they have only pushed a lever for 25 to 30 years...they don't want to adapt or seek new training......our current education model does not support the demand for future highly skilled workers...we graduate kids who can't read or write......we think that by students getting high SAT scores they are going to solve everything...
Jan 30, 2012 at 2:49 p.m.
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http://jobs.thejobnetwork.com/nphomepage...
Jan 30, 2012 at 2:21 p.m.
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I see. I won't rush out and get a degree just yet then.
Jan 30, 2012 at 2:18 p.m.
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The jobs will be filled by latteral moves - the trickle down effect will eventually leave lower paying, entry-level positions for us to gobble-up.
Jan 30, 2012 at 1:54 p.m.
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I'm not surprised to see all the complainers. Where are the high paying jobs? Who will fill them because we're not qualified? Get off your duffs & get an education - get the skills! The world is moving & changing every day people & if you don't keep pace you will get left behind.
Jan 30, 2012 at 1:15 p.m.
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Will these high-tech jobs be able to be filled with persons from our community (do we have enough people with the required skills and education)? From what I have been reading, there are many jobs that employers (in general, not necessarily here) have been trying to desperately fill for some time, but the skill set simply is not available. So who knows, maybe they will bring employees in from outside. That would be all right, as those employees will spend their income here, but it doesn't help the locally unemployed.
Jan 30, 2012 at 1:07 p.m.
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If Bliss don't like it, ain't nobody gonna see it. Selective freedom.
Jan 30, 2012 at 1:04 p.m.
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The comments were not disabled until 25 minutes ago. To see some of the comments, check (search) the history of bloggers like ALLin.
Jan 30, 2012 at 1:02 p.m.
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EVER SEE ANY BLISS COMMUNICATION WAGES, ? THEY BELIEVE IN MINIMUM WAGE !
Jan 30, 2012 at 12:24 p.m.
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Soughton Trailers planning on hiring 125 workers. "Sorry, comments have been disabled by the site staff."
WOW! I guess they don't want people to know how they treat their employees.
Jan 30, 2012 at 12:08 p.m.
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I bet it also shops at Banana Republic?
Jan 30, 2012 at 12:06 p.m.
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Mouse- I taught my pet chimp to copy and paste. You two are now equally skilled.
Jan 30, 2012 at 11:31 a.m.
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Hahaha... "there is no high paying jobs"
What is it you are trying to say? You can't get a high paying job with the training and education you possess? To be sure there are high paying jobs in and around Janesville but you need the qualifications to fill that position. Are you basing your statement on the past GM wages? Those days are over my friend.
Jan 30, 2012 at 11:09 a.m.
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gonfo5 Recall Walker... and save Wisconsin.
Jan 30, 2012 at 11:09 a.m.
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I think we need to refer mouse to the local Stateline Literacy Council.
Jan 30, 2012 at 11:02 a.m.
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Cmon everyone, lay off the Mouse, we all know he/she is a troll......
Jan 30, 2012 at 10 a.m.
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Wow Mouse, so its all Walker's fault, huh? How about that trillion dollar spending bill Obama said would save everything? How is that going for us? How about all those billions of dollars he spent on solar jobs that are gone, just like our tax dollars? If you are going start pushing blame, then please go a little higher on the food chain!
Jan 30, 2012 at 9:56 a.m.
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It took a bunch of years before Kenosha began recovering from the loss of AMC.
Things don't happen overnight.
Unless you are a Democrat talking about a Republican.
3 years of Federal keynesian economic failures vs 1 year of conservative Governor's attempts to heal a state amidst harsh obnoxious opposition.
Republican Governors and a boat load of state reps that were voted in, in 2010 are trying to give the economy a boost despite Obama's jobs killing policies.
Jan 30, 2012 at 9:41 a.m.
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I have to agree with Sigma also. Most people today confuse suffering and surviving. There are people out there that are suffering (situations both self inflicted and not)and there are people that are surviving. If you are surviving, be grateful you are not suffering and don't confuse them both. The events of the last 5 years can be a learning experience for most, and then some just won't get it. The latter I have no sympathy for....
Jan 30, 2012 at 9:31 a.m.
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Sigma
Many on the left think that things are supposed to jump at them and that the government has all the answers. They don't believe in the good old go "out and make things happen method. "
They don't make things happen and they only get in the way of those who are trying to make things happen...
Jan 30, 2012 at 9:13 a.m.
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Life is all about ups and downs. For the past few decades everyones been under the impression that it only goes up so they didnt have to prepare for the downs. Older people, like my grandparents were wise spenders, always prepared so when times did come that were hard... their life style was uneffected. You rarely see people today prepared for anything. I learned a lot from them.. and it opens my eyes to some of the problems of today... people today dont worry about money because they can just borrow and owe.
Jan 30, 2012 at 8:48 a.m.
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Sigma...OMG...I can't believe I'm saying this, but, I agree with most of what you said, this time. People DO live beyond their means, they're spoiled.We gave our kids everything we didn't have growing up.It's a sad state of affairs.
Jan 29, 2012 at 11:40 p.m.
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To smallBIZowner, I would like to add one comment: Baloney!
Jan 29, 2012 at 10:21 p.m.
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Most high paying jobs that are created are filled from within the company, leaving the lower paying entry-level jobs for the general public to fill. This is normal.
Jan 29, 2012 at 10:17 p.m.
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The government is thinking backwards, as usual. Both the Republicans and the Democrats keep stressing that small business is the key to job growth. This is not true, but, as a small business owner, it's a win-win situation for me and other small business owners - we get cheap money AND reduced government regulation. This lines our pockets with easy money even though they think it will create jobs.
Jan 29, 2012 at 10:01 p.m.
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People complain about no high pay jobs... why dont people just learn to manage money and live within their means? When their greed surpasses their income people blame it on the economy...lol. The economy isnt getting worse... people are just getting dumber and rely on all the amenities society offers more. I see dozens of people on facebook all crying they are so broke.. yet they can get online, have smart phones, go to the bars, buy stuff they dont need, i assume from these observations its pretty much the norm everywhere. They have all these payments they need to pay...why? Because they are not responsible and not accountable. I know a lot of GM workers that lived WAY above their means. House payment, boat payment, harley payment, 2 car payments...etc. So if you take away their excessive income... that is the economy going bad? HAHA! You see the drive through lines at lunch...FULL. Bars are full, Grocery store carts are not limited to bare necessities, nope, and I do look. Junk food, pop....etc. If our economy were truly bad I would see people limiting their buying. Fast food places not as packed..etc. There are several things one can observe. The only thing that points to a poor economy is the media. Since hard copies of newspapers are becoming obsolete its a good subject to hold peoples interests. Businesses have been closing for the past 100 years. Look around, open your eyes.. we get through it just fine.
Parker pen was once a huge part of Janesville back when it was booming on Parker drive. Geri's hamburger stand, how many different stores came and went in the mall? Bad economy? Nope...Im not buying it.
Jan 29, 2012 at 8:24 p.m.
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Sigma40 said, "The economy is just fine."
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Wow! Just wow!
Jan 29, 2012 at 8:13 p.m.
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Just like Stoughton Trailers, United Alloy is a horrid place to work. Take a look at the high turnover and unsafe working conditions. The president at UA is only worried about lining her own pockets. She has a track record of hire then fire.....hire, then fire.....hire, then fire. she manages her work force with fear. Watch your back if you work there. you could be gone tomorrow. No job security there!
Jan 29, 2012 at 7:33 p.m.
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Rpublican cacus at tavern.........
http://rocknetroots.blogspot.com/
and you think they care about kids education?
Jan 29, 2012 at 7:28 p.m.
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http://rocknetroots.blogspot.com/
Jan 29, 2012 at 7:22 p.m.
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All the money Rock county business gave Walker........where are the jobs?
What did they realy give him money for?
Jan 29, 2012 at 5:23 p.m.
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When enough companies add 5 or 10 jobs, it all adds up. This is great to hear. Now we just need some additional, sustainable employers to come to the area and we will be getting back to business.
Jan 29, 2012 at 5:17 p.m.
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It is what u make of it?? If there is no high paying jobs, then there is no high paying jobs. This is great news for Rock County!!!
Jan 29, 2012 at 5:03 p.m.
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While areas of the market are up, some are down.. thats how its always been. The economy is just fine. It is what you make of it.
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