Published November 19, 2008 11:39 pm - A collapse of Detroit’s Big Three automakers could mean the loss of more than 600 Crawford County jobs.
Jobs hang in the balance as bailout talks stall
By Keith Gushard
A collapse of Detroit’s Big Three automakers could mean the loss of more than 600 Crawford County jobs.
With General Motors, Ford and Chrysler fighting to survive, the loss of any would have a direct impact on two local firms.
Meadville Forging Co. has about 365 workers at its Meadville and Cambridge Springs plants. It furloughed 13 workers back in October as the economy worsened.
Meadville Forging makes more than 25 million wheel hubs a year — a total that represents more than half of the U.S. domestic auto market for automobiles and light trucks. It makes about 22 million of them at its Meadville and Cambridge Springs plants. The company isn’t a direct supplier to the auto industry, but it does work for first-level suppliers to the auto giants such as Delphi and Timken.
Another major employer that could be impacted would be Pittsburgh Glass Works LLC. It has about 250 employees at its the Greenwood Township flat glass-making plant. The company makes automotive glass.
Those 615 jobs are only 1.46 percent of the total employment in the county, but are 7.78 percent of its 7,900 manufacturing jobs.
If any of the Big Three automakers close it would also affect eight of their remaining dealerships in the county and an unknown number of the dealerships’ employees.
The dealerships are already under pressure due to the tight credit markets. These conditions played a role in the closure of Titusville’s Schwab Ford Nov. 7, putting 12 full-time employees out of work.
An unknown number of Crawford County tool and die workers might also face job losses as a number of area tool and die shops do at least some work for the automotive sector.
“A lot are connected to parts suppliers, but a lot are not in as deep as they
were,” said Tim Mullen, vice president of Starn Tool & Manufacturing of Meadville.
For example, about 15 years ago, 80 percent of Starn’s business was tied to the auto industry, but today it’s about 10 percent, he said.
The loss of these jobs would ripple through other sectors of the local economy.
“Any employer who reduces the number of employees, it’s going to affect those who live, work, dine and shop in the area,” said Meadville-Western Crawford County Chamber of Commerce Board of Directors Chairman John Swick.