Tulsa World: Manufacturers see ray of hope

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Manufacturers see ray of hope
A new report says Oklahoma lost 74 companies in a year.

Sean Horrocks, a Central Tube and Bar Inc. machinist, stacks a tube he bent. Factory managers say they are starting to see new orders for the first time in months. SHERRY BROWN / Tulsa World file

By KYLE ARNOLD World Staff Writer
Published: 9/22/2009 2:23 AM
Last Modified: 9/22/2009 8:13 AM

After losing more than one in nine jobs during the last year, area manufacturers say they're starting to see an increase in orders that may signal the sector is on the verge of a recovery.

A report released Monday from Manufacturers' News Inc. said Oklahoma lost 74 manufacturing companies between July 2008 and July 2009.

But figures from the Oklahoma Employment Security Commission paint an even bleaker picture, with 17,400 job losses between August 2008 and August 2009. Factory employment has dropped from 150,000 to 132,600 during that period.

Many manufacturers reported sales decreases of at least 15 percent during the last year, while others, such as Tulsa cabinet maker Penloyd, have simply shut down.

"We've had some fairly substantial losses," said Curtis Evans, an extension agent with the Oklahoma Manufacturing Alliance. "But a few companies seem to be reporting a turnaround."

Factory managers say they are starting to see new orders for the first time in months, and some believe the economy may be rebounding as plants have sold off excess inventory.

Evans, who works with manufacturers across the Tulsa area, said some factories have even started to hire workers back.

Machining shop Ideal Specialty Co. in Tulsa saw an uptick in orders at the beginning of this month before business fell flat again, said Franklin Herndon, the company's vice president and president of the Tulsa Area Manufacturers Association.

"There has been some pickup, and at the first of the month we were rocking and rolling, but things slowed down again," Herndon said.

Upco Inc. in Claremore has started seeing new business for the first time in months, even though oil prices have been hovering near $70 a barrel since June.

"The future looks a lot better than it did a few weeks ago," said Upco President Bill Ridenour.

Many companies had delayed orders after the recession started last year, but now those companies are starting to ask for product again, Ridenour said. New sales have also increased, he said.

Tulsa's Central Tube and Bar has received some new orders starting at the beginning of September, said the plant's general manager, Jene Harmon.

Apart from its main customer, IC of Oklahoma LLC, Central Tube has increased business with other customers, Harmon said.

Even with some turnaround in business, the Tulsa area has still lost thousands of manufacturing jobs during the year, as major employers such as Trinity Structural Towers and Labinal Aero Defence Systems have decided to close.

"Some companies that are fairly solid have struggled, but I think the (manufacturing) market seems to be going the right way," Evans said. "It's pretty soft still, but it seems to be a little better than it was."

Kyle Arnold 581-8380
kyle.arnold@tulsaworld.com By KYLE ARNOLD World Staff Writer

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olddude, tulsa (9/23/2009 7:22:57 AM)

Don't tell the republicans this,they say things are not improving.

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