By Denise Richardson
Staff Writer
January 10, 2009 04:00 am Uncertainty about the economy and job security is echoing through the region. MeadWestvaco in Sidney is rehiring some shipping and production workers laid off last year, said union President Virginia England this week, but how long they'll be working is uncertain. Each year, the Communications Workers of America 14164 usually sees about 150 seasonal layoffs at the calendar manufacturer, England said, but about a year ago, the number was 250 and now it's 295. MeadWestvaco officials confirmed 295 employees are on temporary layoff but are expected to be called back this year. Employees are laid off during slower production times and retain eligibility to return as business improves. The same layoff cycle is expected this year, MWV officials said, and there are no plans for permanent layoffs beyond those last year. MeadWestvaco, Amphenol in Sidney and Mold-A-Matic Corp. in Oneonta are manufacturers in the three-county area that cut employees last year. The state Labor Department recently reported the Otsego, Delaware and Chenango region had a 5.9 unemployment rate for January through November 2008, the highest since a 6.1 percent unemployment rate in 1995. The breakdown by county was Otsego, 5.6 percent; Delaware, 5.9 percent; and Chenango, 6.4 percent. The state reported November unemployment rates at 6.7 percent for the nation, 6.1 percent for the state and 5.9 percent for the state, excluding New York City. Other local firms employing 50 or more workers are avoiding layoffs by not filling vacancies or adjusting work schedules, and more than one company projects hiring workers this year. Though the economic slowdown will continue, managers and economic developers expressed cautious optimism about local sustainability. ``We're fairly insulated from the immediate effects of any economic downtown,'' said Tim Hayes, director of the Center for Economic and Community Development at the State University College at Oneonta. ``In general, we should weather this latest economic downturn unless there is some historic disruption among our current major employment sectors.'' Managers of small and mid-sized firms in New York state intend to cut costs, hiring only as needed and developing products and markets, according to a poll by the Siena College Research Institute. The study revealed that 72 percent of 404 executives surveyed expect the economy to worsen this year. Of respondents, representing all sectors, 20 percent planned to cut jobs, 19 percent planned to increase staff and 61 percent expected to maintain staffing levels. Most jobs lost in the area last year were in manufacturing, and business officials agreed a diversified marketplace has sheltered the region from broader economic changes. In mid-November 2008, 1,470 Chenango, Delaware and Otsego county residents collected unemployment insurance benefits, up 418, or 39.7 percent, from the previous month and up 564, or 62.3 percent, from November 2007, according to Christian Harris, a senior economist with the state Labor Department office in Endicott. Much of the gain was in the manufacturing and construction sectors, he said. The claimant count represents the highest for the month since 2001 and is only a portion of the ``total unemployed" _ residents who are unemployed and actively seeking employment, not just those collecting unemployment insurance _ Harris said. The data relates to customers served by the Chenango-Delaware-Otsego Workforce Career Centers in Oneonta, Norwich, Sidney and Delhi. Manufacturing was slowing before the national recession began in December 2007, said Mark Vergari, vice president of Mold-A-Matic Corp., this week. The River Street firm laid off 40 of its 100 employees last year because of lost production orders. However, there are encouraging signs, he said, with more requests for product quotes, better sales at its Mamco Precision Switches unit, a partnership with a firm in China and business with a firm in Auburn. Mamco aims to keep its 45-year-old business in Oneonta. ``We're here for the long haul,'' he said. ``We're adapting to the economic climate the best we can.'' MeadWestvaco, a manufacturer of calendars and planning products, has 1,000 employees in Sidney, company officials said this week. At the end of 2008, MWV had 1,058 employees, down from 1,127 at the close of 2007, they said. The decline was the result of elimination of about 60 jobs and attrition, when workers left or retired and those vacancies weren't filled, officials said. MWV in Delaware County has faced increased business costs, such as raw materials and energy, and consumer spending has decreased, officials said, and the Sidney facility manufactured fewer units in 2008 than in 2007. It projects to retain lower unit volume this year. Amphenol, manufacturer of electronic and electrical interconnect devices in Sidney, has laid off more than 200 workers in the past 18 months. According to former employee Travis Robison, Amphenol employed 1,100 to 1,200 last year. Officials at the national company have refused to comment, and a call to the plant's human resources office this week wasn't returned. Business subject to many factors Business officials and economic developers said hiring this year depends on product orders, competition and the national economy, among other factors. ``The unknown is still there,'' said Daniel Robinson, president and chief executive officer at New York Central Mutual Fire Insurance Co. in Edmeston, Otsego County. The firm had no layoffs last year but hasn't hired anyone for about 18 months because business is down, he said. The company has about 950 employees, down from about 1,100 in 2007, he said. ``Things are in a downturn,'' said Glenn Nealis, Delaware County economic developer. ``Everybody's nervous.'' But Delaware County isn't worse off than elsewhere in the state or nation, Nealis said, and area employers large and small have survived previous slowdowns and recessions. Though Amphenol and MeadWestvaco had layoffs last year, other employers in the county produce prescription drugs and food products, providing stability in the work force, he said. Also, most businesses in Delaware County have 10 or fewer employees. They avoid layoffs by reducing worker hours and other measures, Nealis said, and no businesses have closed because of the recession. ``Our businesses are managing the current economic situation,'' Nealis said. There have been six recessions in the past 40 years, resulting in job losses in New York state of between 1 percent and 8 percent, Labor Department officials said. New York usually takes longer than average to recover from a recession. In 2007, the national unemployment rate was 4.7 percent, the federal Labor Department said, and since the start of the recession in December 2007, unemployment has risen to 7.2 percent. Niche markets, local ownership key The region has been able to weather changes in manufacturing because many firms serve niche markets, are locally owned, smaller and can be flexible in management, Hayes said. About half of the 45,000 primary jobs in the Oneonta, Sidney, Norwich, Cooperstown and Edmeston areas are in manufacturing, education, health care and social assistance, he said, making those sectors the main engines of the local economy. Delaware and Chenango counties have more manufacturing jobs than Otsego, which is more service-oriented. Economic turmoil in the financial sector has benefited at Wilber National Bank as customers seek more-secure institutions, said Douglas Gulotty, president and chief executive officer of the Oneonta-based institution. To meet demand and to open another branch office, the bank expects to hire six to 10 more employees this year, he said. At the end of last year, Wilber had 310 employees, up from 287 at the end of 2007, Gulotty said. The Raymond Corp. in Greene, which has about 900 employees, avoided layoffs by entering the Shared Work Program with the state Labor Department that involves a four-day work week, said Steve VanNorstrand, the firm's vice president. Raymond also used the program successfully about six years ago. The latest program started this week, he said, and its duration will be a matter of ongoing evaluation. ``We anticipate the market to be slow,'' VanNorstrand said. He withheld data on employment levels because of competition but said he was confident in the firm's products and future in the area. Kevin Price, executive director of the CDO Workforce Investment Board, said area firms have used the Shared Work Program in past economic downturns. The benefit to a company is retaining its trained work force, he said, and the impact of a slowdown is shared by all employees, not just those who might have been laid off. Michael Pentaris, president and chief executive officer at Custom Electronics in Oneonta, expressed confidence about his firm's ventures. The manufacturer of capacitors had 67 employees at the end of 2007, 69 at the close of 2008, and projects a staff of 72 for this year, he said. The firm's off-shoot, Renewable Energy Development, which started with three employees last year, plans to begin manufacturing ultracapacitors in April and projects having 35 workers this year, he said. Geoffrey Smith, president of Medical Coaches in Oneonta, said employment has been steady for several years at about 80 workers. Business was more challenging last year, he said. But the firm refocused on marketing its non-high-technology vehicles and sought more foreign buyers, which he said has had a ``great'' result in orders for 2009 that might result in some hiring. Projections for 2009 mixed Rob Robinson, president and chief executive officer at the Otsego County Chamber, said the recession has brought mixed results here, depending in part on competition and aggressiveness of companies. Some firms dependant on government contracts will see a slowdown, he said, and other employers, especially hospitals and colleges, must wait on state budget negotiations in Albany. Hayes said the state budget will be important in the next two years to regional employment because the health care and education fields are tied to state fiscal policies. Tanya Shalor, publisher of The Daily Star, said she hopes changes in government will aid an economic turnaround. The company restructured last year, she said, and the newspaper had 118 employees at the end of last year, down from 121 workers at the end of 2007. The former DMV International in Delhi, now Frieslandcamtina Domo, has steady employment of 110 to 115 with no layoffs. It filled five positions last year, a spokesman said. The manufacturer produces ingredients for infant, medical and cell nutrition markets. At the end of 2008, Covidien's plant in Hobart employed about 750 people, said Erica Abbett, a spokeswoman for the imaging solutions and pharmaceuticals company. The firm withheld other specifics about employment levels. "At our Hobart plant, we saw employment levels rise from 2007 to 2008, due to increased production levels,'' Abbett said in a prepared statement. She said expected growth in pharmaceutical products will likely lead to hiring among the hourly production work force in 2009. In Chenango County, Norwich will lose an employer by the end of the year. Ohio-based Procter and Gamble Pharmaceuticals, as announced in October 2007, will close its Norwich plant to consolidate resources. The plant had 158 employees at the end of 2007 and 126 at the end of 2008, said Scott Docherty, spokesman. The company is transferring 23 workers, and about 70 are taking retirement packages, he said, which leaves about 30 looking for jobs. Corning has about 200 employees at a plant on River Street in Oneonta, according to a county business directory for 2008. Deb Ballentine, manager at the Corning plant, said employment levels have been steady for the past five years, and the plant has hired to fill jobs that opened through attrition. Ballentine said specific employment numbers aren't released as a matter of company policy. The Corning Life Science Division plant manufactures plastic devices for the medical industry. ``Our outlook is good. However, the current economy may bring some uncertainty,'' Ballentine said. ``We do have some customers who rely on government funding.''
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