3M cuts may drop local jobs in manufacturing below 4,000

Employment levels at 3M’s manufacturing plant on Paris Road in Columbia have fluctuated periodically since the plant opened 37 years ago, and plant manager David Robinson said the decision to cut 200 hourly jobs and 40 salaried positions in the coming months has nothing to do with the cost of local operations or the local business climate.

“We can never take cost disparities totally off the table, but this move was not driven by those disparities,” Robinson said. “It was driven by the opportunity to consolidate operations in existing similar operations that are closer to the customer.”

3M and Boone County officials are negotiating changes in property tax rates, but Robinson called it a minor issue and said they are in agreement on most of the terms.

Robinson announced on Sept. 27 that it will consolidate manufacturing of flexible circuits in Canoga Park, Calif., and Singapore to shorten the supply chain and be closer to its customers in the electronics industry. The bulk of the job cuts in Columbia will take place before the end of the year, although a small number of workers on specialty lines will stay on the job until next summer. The layoffs involving hourly workers will be based on seniority. The plant, which had more than 1,000 employees in the late 1990s, will have about 260 employees after the layoffs.

The plant remains competitive in the high-end markets because of its capability for precision manufacturing, including making sophisticated medical diagnostic devices, Robinson said. There also could be an expansion of jobs involving two other manufacturing lines at 3M—electronic interconnects used for communication devices and magnetic markers used in library security systems, he said.

Neither Robinson nor Bernie Andrews, president of Regional Economic Development Inc., or REDI, would provide specific informati that could be used to gauge the local economic impact of the job losses, such as payroll totals and tax payments.

But Andrews and other local officials said cutting half of the jobs at one of the city’s largest manufacturers will have a significant impact, and they are promoting efforts to reverse the flow of manufacturing jobs.

“It’s definitely going to have a ripple affect on the economy,” Andrews said.

To help 3M workers find new jobs or get training for new careers, the Missouri Department of Economic Development’s Division of Workforce Development has activated its rapid response team, DED spokesman Spence Jackson said.

Robinson said employees will get severance packages based on length of service and will be offered outplacement assistance if they can’t get—or don’t want to get—jobs at other 3M plants.

If there are no manufacturing jobs added in the coming months, the total number of manufacturing jobs in Boone County after the 3M cutback will drop below 4,000, or roughly 1,100 less than the total three years ago.

Boone County’s average manufacturing employment was 5,094 in 2004, 4,924 in 2005, 4,639 in 2006 and 4,605 in 2007. It was not clear whether the totals included job cuts at Collins & Aikman and Summit Polymers. A survey by REDI showed a net loss of only 312 jobs from the end of 2005 to the end of 2006, including losses at Collins & Aikman and Summit Polymers and gains at 14 other manufacturing plants.

The county lost about 470 jobs this past winter when Summit Polymers and Collins & Aikman closed their plants, which made parts for the domestic automotive industry, but it gained 65 jobs when Engineered Plastic Components bought the Collins & Aikman plant and opened a similar product line.

Andrews noted that the cutbacks involved slumping industries and said, “We’re still a good environment for manufacturing.”

REDI is increasing the number of site selection consultants brought in to assess Columbia’s prospects for manufacturing operations, from about one per quarter to one every other month.

Andrews said REDI is also taking steps to increase the number of industrial sites that could be quickly adapted for manufacturing plants.

“We’ve got to have shovel-ready sites,” he said. “In economic development, speed is king. Manufacturers want to be able to put everything together that meets their requirements within 60 to 90 days.”