State asked to help with American Standard workers

Friday, May 1, 2015

Nevada Daily Mail

The City of Nevada is reaching out to the state for help in response to the announcement that one of the city and county's larger employers, American Standard, will be ceasing its Nevada manufacturing operations June 30.

Last week, the company posted a press release that production will be relocated to other facilities within the company's operations network. This affects 133 employees locally.

The plant, which makes sanitary chinaware products such as toilets and bathroom sinks, was originally part of Crane Plumbing LLC that was merged with AS America Inc. and Eljer Inc. in 2009 to form American Standard Brands, said the company's announcement.

American Standard Brands is now part of LIXIL Water Technology (LWT) business, headquartered in Luxembourg.

Monday, the city contacted the Missouri Department of Economic Development regarding the deployment of the Rapid Response Program through the office of the regional workforce coordinator in Springfield.

"This represents one of the best ways to immediately assist these workers and the city emphasized our interest in assisting in the process," said Nevada City Manager JD Kehrman in an email to members of the Nevada City Council and the media.

"The first thing is to provide assistance to these employees," Kehrman said in a follow-up phone call with the Nevada Daily Mail.

"These manufacturing jobs make up a significant portion of our employment in Nevada and in southwest Missouri."

Kehrman estimated the financial impact to the city, county and surrounding area at $9.25 million, based on a tax impact analysis of the loss of 133 manufacturing sector jobs to the region.

The estimate takes into account average manufacturing wages and a multiplier of 1.75 percent to approximate indirect economic impact through the projected spending of the employees.

The financial impact to the city will come from lost water/sewer billing, personal property valuation taxes, and real estate valuation taxes.

"This is pretty significant," Kehrman said of the impact on the workers and to the area.

Kehrman and city officials hope the state program will help the affected employees at the plant.

According to a flier from the state's website, the Rapid Response Program seeks to "provide employers and employees who are affected by business closings with information and assistance to help alleviate the unemployment and economic distress that results from these actions."

The website for the Missouri DED notes that the rapid response team will "contact the employer to develop a series of meetings with the workers. These meetings will explain the services available to the workers to assist them in finding new employment."

It notes further that the team will ensure that "all agencies are available to the affected workers to give out information and answer questions on their programs. This may include local workforce investment boards, other offices of the Missouri DED, and the Missouri Dept. of Labor and Industrial Relations.

"Assistance is provided to local communities to assist in response to the closure.

"Additional meetings are provided for workers as needed for skill testing and assessment, labor market information, and the development of resumes and re-employment plans."

"They will work with the employees and attempt to help them find other opportunities," said Kehrman

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