Trade Practices Hurt Companies

Columbus, OH, Dec. 12--Manufacturing could cease to exist unless trade practices and rising energy and health care costs are addressed, according to participants in yesterday's Ohio Manufacturing Summit, as reported by the Columbus Dispatch. Ohio lost 6,300 manufacturing jobs in October alone and 800 more at Wooster's Rubbermaid plant this week, Sen. George Voinovich said. The state still maintains 847,000 manufacturing jobs that account for $45 billion in payroll. "We're here today to make certain that Ohio remains a world leader in manufacturing," Gov. Bob Taft said. Many companies at the summit, which was held at the Hyatt Regency, pleaded for help. David Johnson, chief executive of Summitville Tiles, which manufacturers ceramic tiles in the Ohio town of the same name, said his company is struggling to survive. Founded in 1912, the family-owned company has been forced during the past 18 months to close two of its three domestic plants and has cut employment from 650 to 250. Johnson says trade practices have led to a glut in foreign-made ceramic tiles. "There is a manufacturing crisis in this country, and our little company is just one example," he said. Christmas bonuses have been canceled, Johnson said, and employees will increase their participation in health-insurance costs to 40 percent, up from 20 percent. Manufacturers said the current pace of double-digit health care insurance inflation must be slowed for them to compete with foreign imports. "We're in such a crisis with health care that if we don't do something about it, I'd rather have it nationalized," said Dan Steen, director of government affairs for Owens-Illinois. Voinovich said he favors bringing the more than 40 million uninsured Americans into the current system. He also said American manufacturers are at a huge disadvantage competing against manufacturers in other parts of the world who don't pay for their employees health care or for environmental protection. Richard D. Selip, president of Grand River Rubber & Plastics, of Ashtabula, blamed large manufacturers for "abdicating their responsibility" by shipping jobs offshore. Voinovich also stressed the importance of passing an energy bill pending in Congress to keep natural gas affordable. Robert C. Winzeler, chairman of Winzeler Stamping Co. in Montpelier, said the future looks difficult. "I think there will be a perfect storm going on for the rest of our lives," Winzeler said. "We're going to need to learn to live in this environment or America's going to down the tubes."