V&M Star in Youngstown (Cleveland, Akron: rent, insurance, condo)

[mdmagana]

Apparently V&M Star is expanding in Youngstown. I've seen a lot of coverage on this in channel 33 and in the online version of the Vindy. Can someone please explain why this is a big deal? Is 300 jobs that big of a deal in an area of over half a million? What am I missing?

[CortlandGirl79]

It's a big deal because not only are they 300 jobs, but they are good paying jobs (non-union i might add). Unlike service jobs, manufacturing jobs have more of a trickle-down effect on a community. I think they say 1 manufacturing job creates or supports 6-10 other jobs. So, not only will 300-400 people have permanent jobs in the mill, there will be hundreds of construction jobs created (at least for a while), more truckers will be needed, more tax dollars for both Ytown and Girard (through the wage tax) that will keep police, firefighters, etc employed, plus when people have a higher disposable income they tend to spend it in stores, restaurants, etc.

For example, i used to work for Delphi Automotive making over $20/hr. I also had anywhere from 3800-7000 coworkers over a 7 year period. Without debating if i was overpaid or not, it's impossible to ignore the fact that myself and my coworkers supported thousands of other jobs in our area. When i was working there i bought a house, paid property and school tax, wage tax to the cities of Warren and Niles, bought a brand new SUV from an area dealer, gave to charity, and spent plenty of money in the community at restaurants, big box stores, small shops, etc.

Now, 3 years after leaving Delphi, i have a bachelors degree and run a business office at an assisted living facility. Guess how much i get paid 11 years after i started at Delphi (and this time w/a four year degree)..........$11/hr. So in 11 years i make just about the same i did when i started on the assembly line at Delphi. I drive 20 more miles each direction to get to my job. I had to sell my house and now i rent an apt in an area with no wage tax for $350/month. I can't afford a new or used car, can't really afford to save too much and pay a heck of a lot more for health and dental insurance w/worse coverage.

Now i want to be clear that i'm not b*tching about my life, i'm actually quite happy. I just wish i could afford to live a little more comfortably and perhaps buy myself a 2011 camaro and/or a decent sized condo. It's never gonna happen at these wages. It is my choice to stay in the Mahoning Valley because i love it here. I love the character of the rustbelt, the green grass, the beautiful trees, my lakeshore community, walkable town, 4 seasons, cheap golf courses, etc. I also like being close to Akron, Cleveland and Pittsburgh, lots of shopping and great hospitals. Most of all i like living near family and friends (the ones who haven't moved away that is), i like running into people i know all over ne ohio. I run into them at the grocery store, indians games, the mall, on a walk, etc. I like the familiar faces, places and shared history. No one understands what life is like here but us, we've lived through some good times together and some really bad times. I like sharing a common bond with people. If i say 1985 people think of the tornado. 1977 is Black Monday. Most people have family member that worked in a mill, at GM or Packard (Delphi). Most of us have a passion for sports and we support our local, state and profession teams. I'm not saying the valley is for everyone, but it's definitely for me.

Sorry for the tangent, but hopefully i did a good job of explaining why it's a big deal.

[truemuck]

On top of that, V&M Star is pretty much the last steel mill left in Youngstown. Steel is what this area was known for, and as you know, has been in decline since the 70's. And with the job market the way it is around here, for a steel mill to be adding 300 jobs is rather noteworthy, at least for Y-town.

[000000]

Originally Posted by mdmagana

Is 300 jobs that big of a deal in an area of over half a million?

yes, because there were not enough decent jobs to go around before the recession, and now there are obviously even fewer. the jobs that remain tend to pay peanuts (which was part of why i mentioned that you should not expect to get any new customers from the area). that half a million people in the valley as a point of pride statistic is really a phantom argument. the truth is that the population in the mahoning valley has been trending way down, especially since the old days of steel.

Originally Posted by mdmagana

What am I missing?

how economically bad things are in the mahoning valley. the reason that you can find house for cheap is because people are trapped in houses they can not move. consider that mahoning county has recently joined the official ranks of appalachia to get an idea of the economic outlook of the area.

[mdmagana]

Thanks to everyone for the info. I was under the impression manufacturing in Youngstown (and most of our country for that matter) was pretty much dead. I've probably gotten that impression because of where I have lived... nothing is built in those places. The fact of the matter is I drove past GM Lordstown and would not have guessed it was a factory if it wasn't for the fact the build said General Motors on it. Large buildings in Orange County are usually just warehouses or distribution centers.

The friends I have in the area all have well-paying jobs in the medical field and work at St. E's or up in Cleveland. I never get a different point of view, let alone that of a laid-off union worker. I didn't think about it at first, but I do agree... 300 jobs at one factory will likely mean another 1500 jobs in the area.

So why did steel go bust in the 70s? Was it because of highly paid union labor, free-trade, or both? Or was there something else? And if it went bust then, what has changed that is bringing back a steel plant now?

[CortlandGirl79]

Originally Posted by mdmagana

So why did steel go bust in the 70s? Was it because of highly paid union labor, free-trade, or both? Or was there something else? And if it went bust then, what has changed that is bringing back a steel plant now?

Well, a lot of people in the valley and in this country in general will always blame the union, but if people educated themselves they would see that there were many, many reasons for the collapse of steel in the valley.

I'm very interesting in local history, so i've done a lot of reading on the subject. If you ever get the chance i would suggest that you read Steeltown USA and Steelworker Alley: How Class Works in Youngstown. They are both great reads and they both give you a really good picture of the Youngstown area. I would also suggest you go down to the Museum of Labor and Industry downtown, it really sheds some light on things as well as providing a research center.

So here are some, but not all of the reasons steel failed in Ytown (btw you might want to look this things up for yourself, i can't guarantee everything i say is 100% fact, it's hard to remember everything i've read):

Old technology - many of the mills and blast furnaces were old and very outdated. The mill owners were still making money for a while so they never modernized them.

Location - Youngstown is landlocked when it comes to getting the raw materials for steel, taconite, coal, limestone, ore, etc. From what i learned in my college geography class, it seems that the Mesabi iron range doesn't have much left........lake erie was used to get the ore to Cleveland then the Hulett Ore loaders would take the ore off the ships and load it into trains headed for mills all over ne ohio and western pa.

http://www.youtube.com/watch?v=1RJfnk2S330 The ore loaders

The union - steelworkers in the valley did very well for themselves, Youngstown once had the highest percentage of home ownership in the US. Sometimes people get greedy or have a hard time changing their point of view, just like the mill owners and corporations. You've seen this in the news with the UAW.

Lykes Corporation - if i'm remembering right, Lykes Corp was a southern ship building company that bought Youngstown Sheet and Tube. Instead of investing in the mills, Lykes took all the steel profits and invested them in their shipbuilding operations (just like delphi took the profits from the Warren operations and invested in Mexico and China). You can kind of see where this leads.

Japanese steel dumping - The japanese are known for subsidizing their industries. From what i've read they and the chinese "dump" their products on the american market by undervaluing their currency and subsidizing industry. American companies cannot compete with this.

So why is V&M succeeding???? Well, first of all they make seem-less pipe for the natural gas industry (pa and ohio are full of natural gas by the way). The industry is booming and they need pipe. The mill is non-union, but i'm not sure what kind of wages and benefits these workers make. Usually non-union places pay well to keep the union out, so who knows. The other thing that's really helping out the US steel industry is the fact that the Obama administration (and even Bush for a while) recognized the unfair trade practices of both Japan and China and they have slapped tariffs on some of their products (much like they do to our products, i might add).

So, hopefully that gives you some more insight.

Some helpful links:

OHS - Places - The Youngstown Historical Center of Industry & Labor

Youngstown Sheet and Tube - Wikipedia, the free encyclopedia

From Vindy.com: Vindy.com - January 1969: Lykes Corp., a New Orleans steamship company, takes over ownership of Youngstown Sheet & Tube, which was founded in 1901.

January 1969: Lykes Corp., a New Orleans steamship company, takes over ownership of Youngstown Sheet & Tube, which was founded in 1901.

June 1977: Sheet & Tube reports second-quarter loss.

August 1977: 150 jobs cut at Sheet & Tube headquarters.

September 1977: Sheet & Tube announces closing of its Campbell Works, the relocation of its headquarters from Boardman to the Chicago area and the elimination of 5,000 jobs. Within 10 days, more than 1,000 workers are out of work.

November 1977: Lykes announces plans to merge with LTV Corp.'s Jones & Laughlin Steel division.

February 1978: Ecumenical Coalition of the Mahoning Valley kicks off the Save Our Valley campaign.

September 1978: Religious leaders and economic experts announce $525 million plan to reopen Campbell Works.

December 1978: Sheet & Tube name disappears as its parent company, Lykes, receives approval to merge with Jones and Laughlin Steel.

March 1979: Carter Administration refuses to fund reopening of the Campbell Works.

May 1979: Ecumenical Coalition gives up attempt to save the mill.

November 1979: U.S. Steel announces that it will close its Ohio Works and McDonald Works, which will eliminate 3,600 jobs.

December 1979: The last blast furnace at the Campbell Works shuts down, signaling the end for 1,400 former Sheet & Tube workers still on the job there at the Brier Hill Works.

January 1982: Republic Steel begins massive layoffs at its pipe mill and blast furnace in Youngstown that eventually will eliminate 2,600 jobs in the city. In 2002, the pipe mill was sold to Maverick Tube, which later closed it.

October 1983: Republic Steel approves merger with LTV Corp.

August 1986: The last of the former Sheet & Tube operations in Youngstown and Campbell are shut down by LTV. Nearly 300 jobs are lost.

April 2001: CSC in Warren, formerly Copperweld Steel, closes, eliminating 1,400 jobs. Today, an investment group is working on restarting part of the mill.

This sounds eerily familiar to today's struggles across this country:
The Pittsburgh Press - Google News Archive Search

Love this video btw:

http://www.youtube.com/watch?v=Ni4bwCfa-SU

[mdmagana]

CortlandGirl, thanks for the video! It was interesting. That same Youtube poster also had some interesting Ohio and California videos. =)

[CortlandGirl79]

^interesting, i'll have to check out his/her other videos.