Large factory closings made headlines last year, but smaller expansions helped keep manufacturing employment level in 2014, according to local economic development experts.
Superior Industries International was slated to close its Rogers plant by the end of 2014, eliminating about 500 jobs. Apex Tool Group is closing its Springdale plant by the end of this year, putting about 250 people out of work.
Manufacturing Jobs
The following data is for November of each year:
2004 33,300
2005 34,000
2006 33,400
2007 32,000
2008 31,300
2009 28,900
2010 28,400
2011 26,500
2012 26,700
2013 26,400
2014 26,200
Source: U.S. Bureau of Labor Statistics
Kathy Deck, director of the Center for Business and Economic Development at the University of Arkansas, said most of the lost jobs aren't yet reflected in employment data.
"The numbers have held pretty steady all year, within a couple hundred people," she said. "But losing 750 jobs is a hole we will have to fill."
The area lost about 200 manufacturing jobs between November 2013 and November 2014, accounting for an employment decline of 0.76 percent, according to the U.S. Bureau of Labor Statistics. There were 26,200 local manufacturing workers at the end of November, and the 750 jobs lost is nearly 3 percent of total manufacturing employment.
Manufacturing jobs in Northwest Arkansas shrunk by about 20 percent in the past decade, shedding 7,100 jobs.
Bill Rogers, vice president of communications and special projects at the Springdale Chamber of Commerce, said the closing of Apex was a down point for the community, but overall it was a good year for Springdale manufacturers.
"No question no one wants to lose jobs, but the positive from our standpoint is we have never had a year like this where we had so many existing companies expanding or new ones exploring the city," he said. "Our economy is in a state where we believe we can absorb those Apex job loses."
Kelly Blazek, Apex spokeswoman, said employees are being laid off in waves and production will cease by the end of the year. She would not provide a timeline or say how many jobs already have been eliminated.
Apex makes a variety of hand and power tools and horseshoes at its factory on Old Missouri Road. The company is consolidating production from its Springdale and Dallas plants to Sumter, S.C.
Rogers said South Coast Baking ramped up one line of production at its Springdale factory in late summer, hiring about 50 workers. The California-based producers of frozen cookie dough to clients including Sam's Club, Mrs. Fields and Panera Bread, will eventually run three lines and hire about 70 more workers over the next couple of years.
Kent Hayden, chief executive officer, didn't return two messages left for him at his office in mid-December and one message Friday.
American Tubing added 65 jobs early last year following a $3.2 million expansion that added 20,000 square feet of production space to its Springdale plant.
The company has created copper assemblies and components for 38 years and expanded to add an aluminum division. The air conditioning and refrigeration company recently acquired a second major contract, said Chuck Lewis, president of American Tubing.
"We had the new operations moving by Feb. 1, and people were hired from December until March," Lewis said. "Things are going good."
Winter is the off-season for the air conditioning industry, and Lewis said he has 180 people on staff. Employment peaked at 270 over the summer.
Some manufacturers added to buildings, but new companies looking into the area had a hard time finding floor space, said Steve Clark, president and chief executive officer of the Fayetteville Chamber of Commerce.
"Our biggest challenge is a lack of inventory of existing space," he said referring to buildings with at least 75,000 square feet.
Xceligent, a commercial real estate information firm, reported Northwest Arkansas third quarter industrial vacancy rate was 5.5 percent. The national rate was 8.9 percent, according to the National Association of Realtors.
Fayetteville will have a 133,000-square-foot manufacturing building open next year after Cooper Power Systems closes. The plant manufactures equipment, components and systems for the distribution and management of electrical power for utilities, industries, businesses and institutions.
The company has 36 employees in Fayetteville and is moving production to a plant in Queretaro, Mexico, and distribution services to a facility in Irving, Texas.
Superior Industries also is moving jobs to Mexico. Fayetteville and Rogers were the aluminum wheel maker's only U.S. operations. The Van Nuys, Calif.-based company has a handful of plants in Mexico.
The company announced in July it would close the Rogers plant by year's end. Messages left for Kerry Shiba, Superior's chief financial officer, in December and this week and one message left for Melissa Turner, Rogers plant manager, at their offices weren't returned.
Steve Cox, vice president of economic development at the Rogers-Lowell Area Chamber of Commerce, said a few workers were at the plant and some cars were in the parking lot Dec. 22.
The company reported plans to sell the building at 1301 N. Dixieland Road in its quarterly financial report issued Nov. 4. Benton County property records show the property and 277,731-square-foot building are valued at $7.5 million.
Cox said the one good thing coming from Superior's closing is that it adds a building for a new company to move into.
"There are so many opportunities out there, and you don't want to be pigeon-holed into one thing," he said. "It's always great to have existing facilities to show potential companies."
NW News on 01/04/2015