Day After: What the 380-job loss, CCH exit means
-With just one announcement, Rome/Floyd County lost close to1 percent of its total work force. The 350 to 380 jobs being exported from Rome to Kennesaw as CCH Small Firm Services consolidates has differing repercussions.
-1) Local jobs: The labor force has been shrinking each month because of the recession. Now the CCH exodus will accelerate that drop starting as early as April. These are higher paying jobs, too. Using an estimate of $17 per hour per worker, the move sucks $13.4 million in annual payroll out of Floyd County. Plus, what about the indirect and retail jobs dependent on locally based employees?
-2) The workers: We're hearing about creative incentive packages, including fuel compensation and perhaps even four-day work weeks, to encourage staffers to make the commute. The question is, can they be out of their home community so long each day, especially if they're working parents? There also are reports of generous relocation packages. Those who chose not to move will be offered severance pay; decisions are due by April.
-3) Glut of vacancies: With CCH gone by July, yet another large campus will be empty, adding to the former warehouse off Lavender Drive; Galey & Lord; the Mohawk warehouse off Ga. 53; Florida Tile; etc. That doesn't include vacant office and retail spots around town.
-4) What about the company? From a business standpoint, it is hard to argue with a plan that puts four similar operations spread from Florida to Maine in one office park. It is a strategic move by CCH--but not for the economies of Fort Pierce, Fla.; Caribou, Maine; and Rome. For the company statement, click Business.
-5) So what's next? Al Hodge, president and CEO of the Greater Rome Chamber of Commerce, says the business group is "certainly disappointed this decision has been made." The chamber and the community worked with the then-start-up Universal Tax years ago and recently helped its successor company, CCH, win a key IRS contract renewal, Hodge says. "We are disappointed for the employees" who helped build the company, Hodge says, adding the chamber will help the workers who do not make the move to Kennesaw. As for replacement jobs: "We are working with several potential expansions and relocations," says Hodge, who spent part of the day in Atlanta courting prospects. The chamber also is working with several potential start-ups, he says, the same as it did with Universal Tax back when.
State of the economy: Two takes
GSU economist's 'half-speed ahead' prediction of state, U.S. economy:
-He sees "a moderate recovery in employment activity with 43,200 new jobs added (including 6,000 premium jobs) beginning in 2011 and 66,700 jobs in 2012.
-Georgia's unemployment rate will rise to 10.3 percent this year, up from 9.7 percent in 2009. Dhawan sees a dip to 10 percent next year and 9.7 percent in 2012
-Atlanta's housing permits will increase by 15.6 percent this year vs. a 66.5 percent plunge in 2009. Activity will increase by 21.6 percent in 2011.
-The recovery: Dhawan says it will be "at a much slower rate than many think" because of the debt load crippling the banking industry.
-Consumer spending: Shoppers seem "to open their wallets only when price incentives or outright gifts, such as cash for clunkers, are thrown at them," he says, citing employment fears as one reason.
-You can read Dhawan's analysis by clicking Half Speed Ahead.
-The Humphreys' analysis: Dr. Jeffrey Humphreys, director of the Selig Center for Economic Growth at the University of Georgia, says the road to recovery will be bumpier than most post-recession periods in part because of federal programs. Humphreys, however, says ----the recovery "should begin this spring in terms of jobs," according to The Moutrie Observer> Click
Business Buzz
-Game Time West should return in three weeks: Cartersville's westside location of Game Time Sports Grille should reopen within three weeks in the former home of Beef O' Brady's. The restaurant is awaiting its state liquor permit. The original location off Tennessee Street behind Slope's barbecue remains open> Game Time
Your latest forecast:
-Wind advisory in effect until 7 tonight; gusts to 30 mph possible> Click
-Also increased fire danger because of low humidity, gusts> Fire
-Thursday: Sunny, with a high near 41. Gusts as high as 30 mph.
-Thursday night: Mostly clear, with a low around 24.
-Friday: Mostly sunny, high of 51. Gusts to 25 mph.
-Friday night: Mostly clear, low of 23.
-Saturday: Sunny with a high of 53.
-Extended forecast> Click / Regional radar
Norman Arey's Sports Roundtable> Arey
-Too bright to play in the NFL? Can Georgia Tech expect an invite to the NCAA tournament?
Sports/Rome Braves/State Mutual Stadium> Sports
-Registration, training begin for 3rd Berry Half Marathon March 6.
-Braves announced 2010 promotional schedule.
-Redneck Rummage Sale at State Mutual Stadium March 20> Click
No comments:
Post a Comment