County hit hard by layoffs in 2015

The Blytheville/Mississippi County economy has taken a number of hits this year, with approximately 600 layoffs announced since January 1. Most of these layoffs are tied to the pipe industry. During the same time, approximately 600 new construction jobs have been created with the construction of Big River Steel in Osceola.

"This kind of shows the necessity of constantly searching for new businesses to create new jobs. It is unfortunate, with the number of companies making natural gas and oil pipe here. With the drop in prices being good for consumers, unfortunately we are on the other end," Mississippi County Economic Developer Cliff Chitwood said.

In early January, Tenaris laid off approximately 500 employees between the Blytheville and Conroe, Texas plants. It is estimated that approximately 300 of those laid off were from Blytheville. Falling oil prices and reduced production were blamed at the time. Oil prices were at a five year low and as a result, orders for new replacement pipe diminished and petroleum and natural gas companies began to scale back their operations.

"The pipe made at Tenaris, Ipsco and to some extent Atlas is used in oil exploration. There are approximately 2,800 exploratory rigs, and almost two-thirds of them are now idle. That process of closing has slowed. In fact, the week before last, they didn't close any rigs," Chitwood added.

Tenaris announced that they temporarily shut down their Conroe, Texas plant as of April 24th. This left the Blytheville plant as Tenaris's only remaining welded pipe facility in the United States. The Blytheville plant then went on reduced production levels "until oil prices resurface".

Tenaris corporate media relations spokeswoman Carolina Mendoza, in response to questions regarding current conditions at the Blytheville plant and how many callbacks have been made since the layoff, only said that the plant continues to function.

"Our plant in Hickman has and will continue to serve a vital role in Tenaris's integrated industrial network. It is currently the only operational welded pipe facility in the US and an important component of our domestic strategy. We are committed to the US industry and look forward to continuing to invest in the mill, our people and the community," she said.

On February 4, Atlas Tube of Blytheville laid off 35 of its employees. Layoffs were characterized as only temporary. The company attributed "unfairly traded imports and a declining market" to the layoffs and pointed to layoffs from TMK Ipsco, EVRAZ, Tenaris and Vallourec as being similarly market driven. They also announced that Blytheville operations would continue on a two-shift schedule, focusing heavily on the production of "hollow structural steel". It was hoped by the company that as market conditions improved callbacks would be forthcoming. It is believed, though unable to be confirmed through the their corporate office before press time, that a few have.

TMK Ipsco also announced three layoffs this year: 75 employees in February, 42 employees in June and another 75 employees just this week. That brings 2015 layoffs by Ipsco to a total of 192. Communications Director Roger Bentley attributed the layoffs earlier in the year to reduced demand based upon a drastic reduction in drilling (down by 60%) due to the lowered price of gas and oil and "a tidal wave of unfairly priced foreign imports". He also said that if market conditions improved, he was hopeful for call backs. Ipsco also began to ship seamless pipe from their other plants to Blytheville for finishing work to boost the work load.

In February, Aviation Repair Technologies (ART), located on the Arkansas Aeroplex, had to lay off approximately 30 employees when a contract fell through.

Ken Wright, Senior Vice President and General Manager at ART said, "As far as our industry goes, there have been major mergers within the airlines. It has contracted the industry. Many major MROs [maintenance, repair and overhaul facilities] have closed. Though we laid off 30 earlier in the year, we have already rehired 12, or 40%. We believe we are going to continue to add jobs in the coming months. In fact, we will be attending an upcoming Aviation Job Fair in Hot Springs. We were invited by economic development in Hot Springs to recruit some of their laid off workers to come work here. The job fair will be held August 4th. We currently have around 80 employees."

On March 5th, Motor Appliance Corporation (MAC) suffered a devastating fire and therefore were forced to lay off approximately 70 employees. The company has since begun relocation and re-equipping new facilities with an call back effort of about 35 employees.

"Eventually we'll all have the pleasure of paying $4 a gallon for gasoline. The reserve and slow down has driven the price down. And to quote Mr. Bell, 'the cure for low prices is low prices'. As prices go down, production is less, which drives up prices. Same is true of all commodities and petroleum is a commodity. At the county economic development level, our strategy is to go after every product we can which will increase our diversification. Right now a large part of our fortunes are tied to the steel industry. We also have many others like automotive and Denso. That will increase as Big Steel increases and as they bring in customers like Nucor did with Tenaris and Ipsco and other pipe companies," said Chitwood.

He added that his office is currently in talks with three or four smaller companies, which combined may bring in around 130 or 140 jobs. He points to the fact that our economy is not static and continues to move.

"Currently we are in a downturn. And assuredly we will come out of it. Mississippi County has been in farming since its foundation and has had innumerable peaks and valleys. The same will be said with this. We will, in time, come out of this. I know future abstract doesn't balm present misery, but this will improve," he said.

thenry@blythevillecourier.com