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Georgia programs help workers look past loss of manufacturing jobs

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News that Ford Motor Co. plans to close its Hapeville plant this fall was the latest in a string of bleak manufacturing announcements in Georgia. About 2,100 Hapeville workers will lose their jobs, and 3,100 employees will be displaced when General Motors shuts down its Doraville operation. Kraft Foods' plans to let go of 8,000 workers may put an additional 1,300 Georgia jobs in jeopardy.

"We've been bleeding manufacturing jobs for some time now in Georgia. We've seen thousands of textile industry and, now, auto manufacturing jobs lost to cheaper labor overseas," said Michael L. Thurmond, Georgia Department of Labor commissioner.

"What we're losing is a way of life, a path to the middle class. That's what is being lost in this country.

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Tim Baia, of the economic development services/robotics section at Lanier Technical College, inspects a part that has been welded by a Fanuc robot. The new Center of Innovation for Manufacturing Excellence at the college's Oakwood campus is designed to keep Georgia on the cutting edge.

"Many of the workers in Hapeville and Doraville are third-generation employees.

They've worked hard, have great work ethics and skills, and they'll find jobs. Our biggest challenge at the Labor Department is to help them replace the wages they've lost. It's a quality-of-life issue."

The state's challenge is to help workers retool their skills and rethink their direction in an environment where manufacturing is changing, traditional employment opportunities are drying up and training beyond a high school education is preferred.

Fortunately, Georgia has a Plan B.

"We're the first responders when it comes to massive layoffs," Thurmond said. "We're very proud of our Rapid Response teams that can move quickly with resources to help encourage workers to move forward and be proactive about their future. They may be losing a job, but we can't let them lose hope."

Since the late 1980s, Georgia's Labor Department Rapid Response teams have worked with companies facing layoffs or closings to ease worker transition.

"We take work with our community partners to bring the resources to them," said Glenn Collins, Labor Department assistant commissioner for employment services. Depending on what the company needs and wants, Labor Department teams can provide a variety of on-site services, including unemployment-insurance registration, assistance with job searches and education/training options.

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Michael Thurmond
RECENT GEORGIA MANUFACTURING ANNOUNCEMENTS
  • November 2005: Contender Boats will open a high-tech manufacturing facility in Baxley, adding 424 to 500 jobs in five years.
  • November 2005: Three companies (United Structures, MacTavish Furniture and Seminole Marine) will add a total of 220 jobs to Cairo in Grady County.
  • October 2005: Faus Group will build a 280,000-square-foot laminate-flooring plant in Calhoun, adding 350 jobs.
  • September 2005: Caterpillar's expansion of a plant in LaGrange will add 70 jobs.
  • July 2005: Perdue Farms will invest $155 million in facilities in Houston and Monroe counties, adding 1,000 jobs.
  • July 2005: AE Group, a German supplier of automotive and aerospace parts, will bring 300 new jobs to LaGrange.
  • November 2004: Honda Motor Co. will build a $100 million plant in Tallapoosa, adding 400 jobs. Production is scheduled to start in fall 2006.
- Source: Georgia Department of Economic Development

"For people who have been out of the job market a long time, a high level of anxiety can create barriers to keep them from feeling confident about an employment search," Collins said. "We try to address all the issues that might be on their minds and work through their needs." General information sessions and individual counseling are available.

"Many of these workers will be facing a career change, and we can help them develop a plan and provide benchmarks to work toward long before they are laid off," he said. "The earlier they start, the more successful they'll be in getting back to work sooner or into a training program."

Because of the Southside's tremendous job losses, the Labor Department is setting up a transitional center with services to help displaced workers from Delta Air Lines, Fort McPherson, Fort Gillem and Ford. They'll find job-search support and hear about innovative employment strategies, such as Georgia Works, a Labor Department program that allows laid-off workers to get on-the-job training from a potential employer while receiving unemployment benefits.

"Our Rapid Response approach has been successful and productive, and other states have studied it. We're a leader in helping people get back to work," Collins said.

The Labor Department helped 76.7 percent of its job-seeking clients find jobs between July 2003 and May 2004.

The Georgia Department of Economic Development approaches the problem differently.

"We're working every day to entice new manufacturers to locate in Georgia, and we've had a number of smaller, new manufacturing announcements," said spokesman Bert Brantley. "Manufacturing is not in the tank, but it is in transition. We're seeing a changing dynamic in the way companies build things."

Nationally, manufacturing employment is predicted to remain stable over the next 10 years, but the trend is toward smaller, high-tech operations that can adapt quickly, rather than mega-industrial plants.

Georgia's logistics are attractive to manufacturers, Brantley said. Its transportation system includes one of the country's largest airports, the fast-growing port of Savannah, and good rail and interstate arteries. The state is already a distribution hub, and more manufacturers are locating near their distribution centers.

Other advantages include Georgia's 34 technical colleges to train a skilled work force and its HOPE grant (not to be confused with the HOPE scholarship), which pays for technical certificate and diploma programs for most Georgia residents.

MANUFACTURING EMPLOYMENT DATA

In metro Atlanta:

  • In 1995, manufacturing employment accounted for 10.6 percent of all jobs.
  • In December 2005, manufacturing employment accounted for 7.4 percent of all jobs.
  • From its high of 210,100 jobs in 1999, manufacturing has dropped to 173,900 jobs today - a 17.2 percent decrease.
  • According to 2004 wage data, manufacturing's average weekly wage is $943, compared with service-producing industries' average of $831 weekly.
  • Jobs in Atlanta represent 58.4 percent of all employment in Georgia. The metro area has 39.3 percent of all manufacturing jobs and 60.8 percent of all service-producing jobs.
In Georgia:
  • In 1995, manufacturing accounted for 15.9 percent of all jobs in Georgia.
  • In 2005, manufacturing accounted for 11 percent of the state's jobs.
  • According to 2004 wage data, manufacturing's average weekly wage is $797, compared with service-producing industries' average of $727 weekly.
  • From its high of 547,100 jobs in 1997, manufacturing in Georgia had declined to 442,000 jobs in December 2005 - a 19.2 percent drop.
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Russell Vandiver, vice president of economic development at Lanier Technical College, is the executive director of the Center of Innovation for Manufacturing Excellence on the college's Oakwood campus. "My hope is that, 10 years from now, we'll be able to look back and see that this center really made a difference to manufacturing in Georgia," he said.

"The vast majority of new jobs are being created in small businesses, and it's likely that we'll see some displaced manufacturing workers become entrepreneurs based on their skills and hobbies," Brantley said. In that case, the governor's Entrepreneur and Small Business Office can help.

A cutting-edge resource for companies and manufacturing workers who need to retrain is the state's new Center of Innovation for Manufacturing Excellence, which opened Feb. 3 on Lanier Technical College's campus in Oakwood. Established through a governor's office initiative, the center brings the resources of education, government and private industry together to focus on advanced manufacturing processes that will give Georgia an edge.

"We opened Friday with more than 150 manufacturers from around the state present, and by Monday we were offering a class in programmable logic control electronics," said Russell Vandiver, vice president of economic development at Lanier Tech and the center's executive director.

The $3.2 million facility features robotic and advanced computer-integrated manufacturing equipment. Vandiver plans to make it self-sustaining within three years by charging Georgia's companies to train their employees.

"I believe totally in manufacturing. It's one of the few ways to create wealth, but the new jobs are going to be higher-skilled and higher-paid," he said. "Companies are spending millions every year to retrain their workers. Why should they send them out of state when we can do it here?"

The center also is open to individuals, and Vandiver expects to see some former GM and Ford workers. His secondary mission is to bring in high school students to show them what manufacturing is like today.

"I'm concerned about the dropout rate and students who are losing productive years of their lives because they can't see the relevance of what they're learning to future employment," he said.

At Lanier Tech, he sees graduates of one-year diploma programs get career-path jobs that pay $40,000 to $50,000.

"My hope is that, 10 years from now, we'll be able to look back and see that this center really made a difference to manufacturing in Georgia," he said.

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