ANDERSON, Ind. — Although they tightened their belts in 2009 to compensate for decreased demand caused by the recessed economy, Madison County manufacturers are projecting slow growth for 2010.

One local manufacturer, Remy International Inc., has kick-started the year with a contract with Allison Transmission that will require the company to ramp up its electric motor production and hire more workers. Even with the good news, however, Remy, like most other county industries, still is recovering from last year.

“The recession negatively impacted demand, forcing most manufacturers to limit production,” said Remy CEO John Weber. “In 2009, Remy also saw a severe drop in demand across all segments of our business. We are projecting a slow recovery in 2010, but

are particularly optimistic about developments in our hybrid business.”

Remy, with headquarters in Pendleton, is forecasting “slow and sporadic” improvements to business in the near future, Weber said.

Another county manufacturer, S&S; Steel, made it through 2009’s recession without major damage.

“We are very fortunate in that we survived last year,” said Barry Sharp of S&S; Steel. “Last year wasn’t a great year, but it was an OK year taking into consideration all that was going on in the country.”

S&S; Steel did not lay off workers in 2009, but rather reduced its workforce from about 150 workers to 135 through attrition. Now, the company, which furnishes steel and raw materials for businesses that make parts, is back to employing more than 150 workers.

“My gut feeling is, my hunch is, this year is going to be better,” Sharp said. “A lot of people did whatever layoffs, they cleaned house. Nobody wants to do that. They tightened up their organizations and leaned out so they decreased all their expenses. We leaned out last year, and now we’re ready to go again.

“Hardship always makes you better if you embrace it.”

The Anderson area is desirable for skilled manufacturers, city Economic Development Director Linda Dawson said, mainly because of its highly skilled labor force leftover from the height of General Motors.

“The bulk of unskilled manufacturing will continue to operate in global areas with drastically low wage rates, but that labor force is not adept at detailed high-technology processes,” Dawson said. “Hence that type of industry will look to areas with past history and a labor force accustomed to high-tech manufacturing, which positions the Anderson area very well.”

Dawson said the city receives about four to six inquiries a month from manufacturers looking for specific types of buildings. The city is in “serious” discussions with two manufacturers now, and Dawson said she hoped to finalize one or both in the next few months.

Manufacturers provide benefits to county residents, as well, adding jobs to the area and widening the tax base.

“Remy and its supply base provide engineering and manufacturing job opportunities for central Indiana in advanced automotive and green-tech industry sectors,” Weber said.

Chuck Staley, CEO of business incubator Flagship Enterprise Center, said the county continues to see diversification in its manufacturing base, a necessary step to avoid relying too much on one industry, as in the GM days.

“I think that’s key to a balanced economic plan,” Staley said. “For so long we were a one-horse town.”

The Flagship has helped launch 70 companies, from high-tech alternative energy start-ups to food processing businesses. Each manufacturing job creates secondary and tertiary jobs, as well, Staley said, pointing to the Madison County Council of Governments’ indicator that says every one manufacturing job creates three and a half additional jobs.

Accessing capital is a the No. 1 obstacle for businesses, Staley said. With federal stimulus funds going to select businesses, private venture capital is following the public money, he said.

Anderson/Madison County Corporation for Economic Development Director Rob Sparks said the county was diverse in its manufacturers, with successful businesses in all parts of the county, from Remy in Pendleton to Red Gold in Orestes.

“I, frankly, am fairly optimistic,” Sparks said. “Sure we’ve got some hurdles; the country’s got some hurdles. The challenge in 2010 will be the same. We’re seeing sprouts of growth.

“What is being done today is some of the most innovative things that are going on in our country, and they’re right here in Madison County. We have a lot to be proud of.”



Contact Aleasha Sandley: 640-4805, aleasha.sandley@heraldbulletin.com.