By Gary Ogle
gogle@wbcowqel.com
The annual Business Forecast Breakfast hosted by the Bucyrus Area Chamber of Commerce on Thursday was viewed in a crystal ball that was somewhat hazy.
As Jim Spreng of Spreng Capital Management noted, “Growth is incredibly slow and difficult.”
That should not be interpreted as a dark forecast, but rather one that is difficult at best to discern. There was, however, some good news coming from the reports shared with the large turnout at the Trillium Event Center.
“There’s a slowdown. Everybody is pulling back a little on the manufacturing side and it’s a big part of our sector,” said Gary Frankhouse, executive director of The Crawford County Partnership for Education and Economic Development.
Detailing several ongoing initiatives undertaken by The Partnership, Frankhouse says he believes better times are in Crawford County’s future.
“Whenever there is a downturn, there is an upturn right around the corner. I think these companies are preparing for that. I think there is optimism with some of the things we’re doing locally, that’s what you do when times are down to get better,” Frankhouse said. “I’m very optimistic about what is happening in Crawford County in the next two years.”
Bucyrus Mayor Jeff Reser said although it was going to take a lot of innovation and courage, “this is where you can make a difference, this it’s what it’s all about.”
Scanning the crowd of business and community leaders, he added, “I see people that are willing to make a difference. Don’t get discouraged.”
Reser briefly outlined several developments in Bucyrus like the new water treatment plant, the sewer separation plan approved by the EPA, Schines Theatre Arts Park, the city’s investment in economic development, and the newly formed Crawford County Land Bank.
“We want to make sure Bucyrus is a place people want to come,” Reser said.
Ohio Mutual Insurance Group
Todd Boyer, assistant vice president of corporate communications, called 2015 a very eventful year for the company and one of enormous change including Mark Russell becoming the CEO. Russell replaced James Kennedy who retired.
Boyer outlined four challenges facing the insurance company headquartered in Bucyrus.
First, 2015 was a good year financially in large part because of mild weather. The company is preparing for a more normal weather year in 2016 with more related claims.
Second, adapting to the auto market which is consolidating. OMIG has developed a process for agents to provide quotes faster and a self-service component.
Third, Ohio Mutual is continuing to grow its business insurance sector.
Fourth, continuing to be a major factor in farm insurance. Ohio Mutual is currently the number two writer of farm insurance in Ohio.
General Electric
Skyler Munekata, manager of shop operations at Bucyrus General Electric, said his company was currently operating 24 hours a day, five days a week. The projection is that the local GE plant, which ships both domestically and internationally, will make 120,000 lamps this year.
“We truly believe our workforce is the most talented lamp maker in the world,” Munekata said, noting the Bucyrus Lamp Plant continues to be a GE Center of Excellence.
The next challenge for GE is to reinvent the next generation of light with LED.
GE continues to contribute to the local community. Its employees raised $11,000 for United Way. The plant is actively involved with the C U Lead program, Junior Achievement and the WAGE program partnering employers and educators.
Timken
The Timken Company in Bucyrus was represented by Keith Light, who is the local plant’s supply chain manager.
Light included in his presentation an announcement that Buckeye Central senior Sydney Long, daughter of Timken associate Mike Long and his wife Andrea, was awarded the Henry Timken Scholarship.
The Henry Timken Scholarship is one of 17 scholarships awarded to dependents of Timken associates worldwide and the largest as well as most prestigious. Sydney Long will receive from the scholarship $35,000 per year for four years, a total of $140,000, to further her education at The Ohio State University where she plans to study pre-veterinary medicine.
Light said Timken sales were down 7 percent in 2015 with a forecast of another down year of 5 percent in 2016. However, a significant portion of that is being credited to the strength of the American dollar.
Timken has had a strong first quarter, but is expected to drop over the final three of 2016.
Light said the local plant does have an opportunity to grow production through investments in material technology and equipment.
“We’ve been given an opportunity and we’re going to make the most of it,” Light said.
Avita Health Systems
Avita CEO Jerry Morasko called 2015 a “good year” for the local health service provider. He
said it experienced double-digit growth and now employees 1,400 people, and added that Bucyrus Avita has more employees than ever.
Morasko noted the addition of spine surgery in Bucyrus as well as cardiology through the Avita Heart Program. MRI services have also been expanded at the Bucyrus hospital and heart cath services will be part of services offered at Galion.
Currently, Avita is developing the second phase at its Richland Mall site into the Avita Ontario Hospital.
“We’re still locally governed,” Morasko said, “and the board doesn’t want to change that.”
Advanced Fiber Technology
President Doug Leuthold gave what was perhaps the most optimistic presentation, and the most humorous.
Leuthold said his company had 23,000 tons of production in 2015 and is now turning down business because it cannot expand any more.
Advance Fiber Technology’s employment has grown from 20 to 30 people and operations are 24 hours per day, seven days per week.
He credited the strength of new housing starts as the core strength for his company. Leuthold did note that the asphalt portion of his company’s production was flat and is expected to remain that way and most new highway construction funding is going to bridges instead of roads.
Spreng Capital Management
Traditionally, Jim Spreng of Spreng Capital Management gives the final presentation to record an overall economic forecast. Spreng did so again this year, but the majority of his presentation was the tie between the economy and the upcoming presidential election.
“This election we’re going into this fall is a really big deal,” Spreng said.
Citing 400-year lows in interest rates, including four countries with current negative interest rates, Spreng chastised both the Congress and the current administration for not putting forth an economic plan and leaving the matter up to the Fed, which is not empowered by the Constitution to do so.
“We have a very angry electorate because they think Washington does not understand them and that the world economy has left them behind,” Spreng said.
Explaining that because this presidential election has implications long into the future, as well as the volatility and unpredictability of voters, Spreng could only predict that change in the way business is done and the overall impact on the economy is coming.