Town in OHIO may see a 25% Unemployment Rate for the New Year

Not much different than putting all your 401K into 4 stocks - one goes bust and you lost 25% of your portfolio.
 
It is a sad day, but I am not surprised. DHL is BY FAR the WORST overnight company out there.
 
Things are really starting to look bleak . 10+% unemployment by next summer is a real possibility. I wonder what is the next shoe to drop.? GM?
 
At least they have their Teamsters union to look out for them. And Obama.

Of the overnight delivery companies, they certainly seemed the best candidate to "withdraw from the market".
 
FinanceDude said:
It is a sad day, but I am not surprised. DHL is BY FAR the WORST overnight company out there.
Click to expand...

I don't have all that much experience with all of them, but Fed Ex and UPS always seem efficient and their drivers hard-working and courteous, the few DHL deliveries I've had were screw ups ( I was waiting for a package that I had to sign for, the guy went to the wrong side of town to a similar named street, but our house number does not exist on that street - the web site said "no one home to sign for package"!!!!).

A comment on these "one industry" towns. I would think the TOP priority for the mayor/board/citizens would be to diversify! Easier said than done, but what a risk!

-ERD50
 
Doesn't this normally happen in recessions. Bad companies get weeded out. The strong ones survive. Its just worse this time..or is it :cool:
 
We get overseas deliveries using DHL and every single time I have been home and every single time they leave a sticker on the door for me to sign ahead of time for their delivery the next day, instead of ringing my doorbell so I can get it immediately. Drives me crazy!!! But still too bad for the Ohio town.
 
ERD50 said:
I don't have all that much experience with all of them, but Fed Ex and UPS always seem efficient and their drivers hard-working and courteous, the few DHL deliveries I've had were screw ups ( I was waiting for a package that I had to sign for, the guy went to the wrong side of town to a similar named street, but our house number does not exist on that street - the web site said "no one home to sign for package"!!!!).

A comment on these "one industry" towns. I would think the TOP priority for the mayor/board/citizens would be to diversify! Easier said than done, but what a risk!

-ERD50
Click to expand...

Wilmington is out in the flat farm country between Cincy and Columbus. They are lucky to have one industry, let alone more than one. As farming gets more industrialized and fewer farmers must farm more acres many of these towns are in bad shape. It must have seemed a Godsend when DHL showed up. And it did last a pretty long time.

These people are not all going to move to the Bay Area and become programmers or dress designers.

Ha
 
This economy continues to nosedive and the news is bad at every turn. It is hard to keep positive, but I keep clinging to the hope that things won't get as bad as predicted. It makes me so sad to think about all the hurting families out there. This small Ohio town will be devastated.
I look at my 401K and wish I had seen this crazy downturn coming, but alas, I was ignorant of the demise of our economy. Between the two of us, my husband and I
have lost a lot, but I keep telling myself we are luckier than some who have no other savings than their 401K, but still it is painful.
 
I lived in Wilmington from about 1-7 years old ('64-'71). My father taught at the small college there and it was a great place to live back then. Quintessential small town living in the '60s. The Bengals had (have?) their training camp there and we used to hang out there. It was great! I don't know anybody there anymore though.

It wasn't very big then and I'm sure that the Airborne Express/DHL operation caused it to grow significantly over that period of time. I'm sure it will shrink back down now with this operation closing down. Ouch.
 
haha said:
Wilmington is out in the flat farm country between Cincy and Columbus. They are lucky to have one industry, let alone more than one. As farming gets more industrialized and fewer farmers must farm more acres many of these towns are in bad shape. It must have seemed a Godsend when DHL showed up. And it did last a pretty long time.

These people are not all going to move to the Bay Area and become programmers or dress designers.

Ha
Click to expand...

It's likely that many will move to Cincinnati and try to get hired by UPS. Or some other company. There are a lot of little towns like this across the midwest. They would be a nice choice location for small green start up companies. For example, Vestas, the wind trubine company, is building a factory in Brighton, a small town near Denver. 400 jobs!

I heard an analysis of the 10% unemployment prediction which suspected that this does not account for the numbers of people who have given up trying to find full time employment.
 
haha said:
Wilmington is out in the flat farm country between Cincy and Columbus. They are lucky to have one industry, let alone more than one. As farming gets more industrialized and fewer farmers must farm more acres many of these towns are in bad shape. It must have seemed a Godsend when DHL showed up. And it did last a pretty long time.

These people are not all going to move to the Bay Area and become programmers or dress designers.

Ha
Click to expand...

All true. As I mentioned, easier said then done. I wonder what the lesson is for other towns? Provide an incentive for the company to cooperate with 2 or 3 other companies to set up shop in the same town?

Unlikely - the company will find another town willing to take those jobs w/o the other restrictions. Just another sort of example of the boom-bust cycle. Even though we know about them, have seen them repeat through-out history, and we sometimes recognize them when we are in the midst of one, there doesn't seem like there is much we can actually do about them.

While I do feel for the people, they still have to recognize some personal responsibility here. If you live in a one-industry town, you are not diversified. You need to take the whole idea of emergency savings, and preparing to move to take a new job to a higher level. I bet that some did, and they will do OK. We won't read their stories in the paper, because they are boring. Still, it is going to be rough, even for those who prepared.

-ERD50
 
I live about 50 miles south of this location. There was a petition on the ballot for a casino to be built in the same county (to create more jobs) which lost by a 60-40 ratio (state wide vote).

I am guessing the 3000 layoffs are not all in the 12000 person county. Hamilton county is just south of that, and hamilton county has school districts with more than 12000 students.

I went to college in Flint, MI and have seen what a 1 company town looks like when the big fish cut back. I am sure Detroit feels something similar right now.
 
jIMOh said:
I live about 50 miles south of this location. There was a petition on the ballot for a casino to be built in the same county (to create more jobs) which lost by a 60-40 ratio (state wide vote).

I am guessing the 3000 layoffs are not all in the 12000 person county. Hamilton county is just south of that, and hamilton county has school districts with more than 12000 students.

I went to college in Flint, MI and have seen what a 1 company town looks like when the big fish cut back. I am sure Detroit feels something similar right now.
Click to expand...

Total layoffs are about 8,500 plus the previously announced about 5,400 I believe the 3,000 is just those in the town of Wilmington the remainder come from the other 5 surrounding counties if I recollect the article accurately.
 
Now for the next shoe to drop for these people in SE Ohio (and elsewhere in OHIO). The OHIO Unemployment Fund is broke (on the local news here). Got enough money to last to 12/31/08 but these people will be laid off 1/1/09. OHIO is asking for a (3 guesses) A BAILOUT. They say they need something like $500,000,000. Problem is they did not replenish the U-Fund since the last recession (2000 - Eight years ago).
 
Forgive my ignorance but could corruption be linked to state and local officials as well as the wall st. fat cats? Thats the only reason why I would think the U-fund was never replenished.
 
My town's economy was built on iron ore and timber. We had mines to the north, the taconite would be shipped from our port. We had a steel plant as well. There were a number of paper mills in the area as well.

In the 70s the steel industry crashed. We went from a population of just over 100,000 to just over 70,000. Brutal. For years Duluth has been trying to diversify its economy but why move to the frozen north unless there is a good reason to be here? Wood and ore are the reasons. Paper chugs along. Iron ore was a series of mine closings and bankruptcies out of which I made a career. But in the last couple of years mining and thus shipping has picked up.

Tourism was built up but good jobs don't come out of tourism. The most successful new industry that we have had is medical, with one of our hospitals acquiring another and building a large clinic system.
 
Notmuchlonger said:
Doesn't this normally happen in recessions. Bad companies get weeded out. The strong ones survive. Its just worse this time..or is it :cool:
Click to expand...

Did someone mention "weed"? :p

He said these jobs are going, boys, and they ain't comin' back...

Bruce Springsteen
 
Janesville, Wisconsin may be the next ghost town. GM is pulling out by the end of THIS YEAR, after saying it would be the end of 2009.......:(
 
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