The Scoop: Carrier impact begins immediately
The news of Carrier’s closing hit most of Warren County like a falling air conditioner. And folks have been quick to talk about how the county will be in miserable shape in the next year to 18 months when Carrier finally does close its doors for good and leave town.
I’m certainly not looking forward to that day, but it’s also overlooking the obvious to say Carrier’s economic impact won’t begin to be felt until the plant has left Warren County. I’m here to say the impact of Carrier’s announcement on Monday began to affect Warren County economically about two seconds after it was made.
Sure, most Carrier employees will still have their jobs for months to come. And they are sure to walk away with severance packages which will be worth a tidy sum.
But the spending for Carrier’s 1,300 employees will likely come to a standstill in the very near future. If not the general spending of Carrier employees, at least the big-ticket spending will be altered.
How many Carrier employees do you think are out looking for a new car right now? Think there are many still pondering a brand new dream house?
Probably not. The mindset of most Carrier employees likely revolves around padding their bank account as much as possible. They could be in for some lean times, especially for families where both husband and wife work at Carrier, so the smart thing to do at this point is save.
And when the wallets of some 1,300 people begin to tighten, it affects everybody. Gary Prater, owner of Prater’s BBQ in Morrison, has already said he is going to put his expansion plans on hold.
Sure, Gary’s business could continue to flourish after Carrier leaves town, but he doesn’t know that. There is a bit of uncertainty in the air. When that uncertainly exists, most folks err on the side of caution, not reckless spending.
Another aspect of Carrier’s announced shutdown which might be overlooked is Carrier employees earn a pretty respectable salary – and they have great benefits. Yes, their attractive salary will disappear, but let’s not forget about those all-important benefits.
We already have enough health-care woes in this county and in this state without 1,300 more people fighting for insurance. Some of these 1,300 workers will be able to get insurance at their spouse’s place of business, but some will be left without insurance or with a policy that’s not as nearly as comprehensive.
What’s that going to do to, say, the local dentists in the area? Think former Carrier employees are as likely to get their teeth cleaned if someone else is no longer helping to pay the bill? And if they do need to be rushed to a hospital in the case of an unfortunate emergency, who is going to end up paying for it?
And what about the hundreds of folks who work for smaller companies that are so dependent on Carrier for their very existence? The Carrier employees will probably be well taken care of with aforementioned severance packages. The little guy who employs 12 people and has been providing parts to Carrier for years won’t have the same luxury of months worth of pay and grants to return to school. Those are the people who will really be hit hard by Carrier’s departure.
The only thing that appears certain is there is a growing trend for manufacturing jobs to find their way out of Warren County. By the time Carrier is gone in 2005, over 3,000 manufacturing jobs will have left this county over the last six years. That’s a trend not to be ignored.
What’s the answer? There isn’t an easy one, although I do offer this bit of advice. City leaders and county officials should really warm up to WastAway. Our manufacturing jobs may be headed to Mexico, but our garbage is here to stay.
(James Clark is editor of the Standard. He can be reached at 473-2191.)