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CVG was actually in the running for the UPS hub back in the mid-80s. I knew people on the committee. KY picked Louisville over Cincy.

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I saw a headline for this in the Dayton paper this morning, and it sounds like possibly 8,500 job cuts.  If this happens, it will be a huge huge blow to the state.  I don't know if all the cuts will be in Wilmington, Oh, or in Ohio at that.  My fingers crossed that they are not.  But, with a terrible housing market already existing, 8,500 people without work will be devestating.  The spinoff from all of these cuts I believe will be more dramatic than anything. 

It will hurt, but there are lots of part-time folks in the mix at the Hub. This is also a big top-up for farmers as well. The shipping companies also hire lots of post-high school folks so while it will hurt, this isn't as bad as say GE Aircraft closing.

CVG was actually in the running for the UPS hub back in the mid-80s. I knew people on the committee. KY picked Louisville over Cincy.

 

Louisville over Covington is probably more accurate, from their perspective, but that's just being nit-picky, I suppose.

CVG was actually in the running for the UPS hub back in the mid-80s. I knew people on the committee. KY picked Louisville over Cincy.

 

Louisville over Covington is probably more accurate, from their perspective, but that's just being nit-picky, I suppose.

 

That was probably a smart move on kentuckys part. The only people who differentiate Cincinnati & northern kentucky are people who are from the Cincinnati metro, the rest of the world considers it Cincinnati, Ohio and has no idea about northern kentucky. As far as status is concerned, it would have been associated with Cincinnati just like CVG.

  • 4 weeks later...

Wilmington air park a symbol of what's at stake in presidential election

Fight to save air park, jobs turns high-profile

Sunday, July 27, 2008

Stephen Koff

Plain Dealer Washington Bureau Chief

 

Soon after sunrise on a clear, cool morning the day before the 2004 election, President Bush stood in a giant, open-door hangar at a private airport in southwest Ohio.

 

Facing thousands of voters, many of them workers at the air cargo center there, the president asked for their support. "I know the economy of this state has been through a lot," he told them, "but we are moving in the right direction."

 

Then he and first lady Laura Bush walked to the tarmac, waved, boarded the gleaming Air Force One and took off. It was a dramatic flourish, and Mary Houghtaling, whose husband has flown cargo jets at the air park for more than 20 years, still says, "Oh, it was the coolest thing."

 

Full story at:

 

http://www.cleveland.com/printer/printer.ssf?/base/news/1217147439282240.xml&coll=2

Wow... Wilmington getting covered in Cleveland... I guess they had to pick up the Cincinnati slack. :-(

 

It was a great article.

 

 

If this goes through it will have a significant impact on the Southwest Ohio region. All 6,000 people that work there don't leave there.

Not only SW Ohio, but the state.  Something we do not need right now. 

Wow... Wilmington getting covered in Cleveland... I guess they had to pick up the Cincinnati slack. :-(

 

It was a great article.

 

 

 

the enquirer is a really bad paper

Maybe Ohio should just buy UPS.

  • 3 weeks later...

DHL parent going ahead with UPS deal, despite outcry

http://cincinnati.bizjournals.com/cincinnati/stories/2008/08/11/daily47.html

 

A day after Ohio’s congressional delegation called on German Chancellor Angela Merkel to halt DHL’s plan to abandon its Wilmington air hub, the head of DHL’s German parent said it has no alternative but to proceed, according to newspaper reports.

 

Frank Appel, CEO of Deutsche Poste World Net, reportedly told the German daily newspaper Frankfurter Allgemeine Zeitung and The Wall Street Journal that DHL is losing $5 million a day in the United States, and that even more jobs would eventually be lost if it dropped its proposed plan to outsource its U.S. air transport operations to rival United Parcel Service.

 

The proposed deal with UPS would shift flight operations from Wilmington to UPS’s hub in Louisville, resulting in a loss of more than 8,000 jobs in Clinton County. Most of those jobs are at ABX Air and ASTAR Air Cargo, which provide package sorting and air transport for DHL out of Wilmington. DHL itself has more than 40,000 employees in its U.S. operations.

 

Opponents of the deal with UPS have called for a federal antitrust investigation.

Has anyone done a breakdown of the proportion of the lost jobs that are part-time or otherwise secondary? Or is this literally 8000 full time 40 hr/week positions?

 

Regardless, one certain impact will be an absolute cratering of the local real estate market. You won't be able to give a Clinton County house away, and the housing market impact will probably be felt in Greene, eastern Warren, and other local counties. Those workers aren't all going to stay around there and find jobs at Speedway stations or start Ebay businesses.

 

I guess this would constitute a great opportunity for anyone into the "preparedness"/survivalist mentality to pick up a small farmette around there dirt cheap after the layoff happens.

This is sad, but other than the USPS buying Deutsche Post, I don't see much that can be done. It could be worse for Cincinnati, DHL could have been at CVG still. . .  I guess.

More of a reason not to have foreign companies buy out American companies.

This is obviously terrible news, but I don't see why everyone is crying "monopoly."  USPS uses FedEx to carry its packages.  How is that any different than DHL using UPS?

Well... the people in Wilmington don't want to just let this thing happen... so they are trying to cry out about anything that looks like it has a snowball's chance in hell.

 

I've heard rumors of Obama coming to Wilmington too.

 

The casino is looking more promising now... even though these people at the airpark were making good money (all the pilots and shift managers... there were good middle class jobs there) and the same number of high paying jobs won't be offered at the casino...

 

ugh... depression.

So true, not only will casino jobs not pay as much as the DHL jobs, its only about 1/4 of the jobs being lost.

State leaders meet to discuss DHL

http://news.cincinnati.com/apps/pbcs.dll/article?AID=/20080819/NEWS01/308190013/1168/NEWS

 

Ohio leaders will gather here today to discuss how to keep air delivery service DHL from moving to Louisville and what to do if it closes, cutting up to possibly 12,000 jobs in Southwest Ohio.

 

Ohio State Senator Gary Cates, R-West Chester Township, will be among those attending a joint hearing of the Senate Finance and Financial Institutions Committee and the House and State Government and Elections Committee, according to a prepared statement from the Ohio Senate Majority Caucus.

 

Cates said he hopes to work with his colleagues "to do all we can to keep DHL in the region."

 

More at link above:

  • 2 weeks later...

DOT rejects proposal to block DHL-UPS deal

http://cincinnati.bizjournals.com/cincinnati/stories/2008/08/25/daily32.html

 

DHL Express’ plan to use UPS for its U.S. air cargo operations does not constitute unfair competition, U.S. Transportation Secretary Mary Peters said Wednesday, according to a report by the Dayton Daily News.

 

Ohio Gov. Ted Strickland and Lt. Gov. Lee Fisher had written to Peters, asking the Department of Transportation to block the deal, announced by DHL’s parent Deutsche Post AG in May.

 

More at link above:

Peters must be my econ teacher's twin sister... capitalists... pfft.

I had a hunch that this DHL operation and related industry had an impact beyond Clinton County.  So  I ran some numbers from the 2000 census on commuter flows. 

 

Here it is mapped out.

 

ClintonCouny.jpg

 

You can see that Clinton County has an employment impact in the rural counties of the southern part of the Virginia Military District, particularly Highland County (Hillsboro) and Fayette County (Washington Court House).

 

But in absolute numbers there is quite a bit commuting in from surrounding couties,like Warren and Greene. 

 

I didn’t map it, but there are even people commuting in from Maysville/Mason County KY. 

 

Not everyone commuting in to Clinton is working at DHL or related firms, but I would bet that that business cluster probably is the draw for most.

 

Has anyone determined the hit to all of the little "branch" shops at Wilmington like NFL Films, PC Connection, etc?

Has anyone seen a number showing what the job loses will be related to support companies, etc? I am sure something this big will have impacts with other companies in the region.

I dont think any numbers like that have been released. All there is is speculation. They say 1 in 3 people in Wilmington could be affected by the closure. I imagine that includes other businesses as well.

 

I dont know whether all of the businesses at the park would leave, like Technicolor, Lufthansa, Alkermes etc. I sure hope not.

  • 2 weeks later...

UPS-DHL: antitrust threat?

House panel questions how proposal would influence pricing

Wednesday,  September 17, 2008 3:16 AM

By Marilyn Geewax

COX NEWS SERVICE

 

WASHINGTON -- A deal between DHL and United Parcel Service is the "most complex" transaction ever proposed in 30 years of aviation deregulation and might violate antitrust law, the chairman of the House Transportation Committee said yesterday.

 

"It's not a merger; it's not an acquisition," Rep. Jim Oberstar, D-Minn., acknowledged at a hearing on the economic impact of the proposed deal for UPS to provide air-transport services to package-delivery rival DHL.

 

Still, the agreement would let UPS influence DHL's pricing, and that could pose antitrust problems, Oberstar said.

 

Full story at:

 

http://dispatch.com/live/content/business/stories/2008/09/17/dhl_ups_0917.ART_ART_09-17-08_C8_BKBBKIR.html?print=yes&sid=101

 

  • 1 month later...

ABX has cut 1,315 local jobs

Times-Gazette, October 27, 2008

 

More than 1,315 ABX Air jobs in Wilmington have been wiped out through attrition in the five months since the announcement by DHL's parent company it is negotiating with competitor United Parcel Service (UPS) to become DHL's air carrier in North America.

 

Nationally, the number of ABX jobs eliminated via attrition since the announcement is more than 2,200, according to the company.

 

Attrition refers to a company reducing its workforce through a process of employees leaving voluntarily, and afterward the company does not replace the departed workers.

 

Click headline above for full story:

Kautex Textron closing Wilmington plant

Business Courier of Cincinnati, November 4, 2008

 

About 160 employees will lose their jobs when Kautex Textron closes its plant in Wilmington, according to a filing with the Ohio Department of Job and Family Services.  The company said in the filing it will permanently close the facility by June 30, 2009, with layoffs beginning Dec. 31, and continuing over the six-month period.  It cited economic conditions as the reason for the closure.

 

Kautex is a global supplier to the automotive industry, producing plastic fuel systems, catalytic reduction systems and windshield and headlamp washing systems.  Bonn, Germany-based Kautex is a division of Textron Inc., headquartered in Providence, R.I.  The company has several other U.S. facilities, including locations in Avilla, Ind., and Troy and Muskegon, Mich.

It's this sort of news that may help that rotten casino vote to pass.

I don't see the casino issue passing, but who knows.  Even if all of Wilmington votes for the thing, that's such a small piece of the pie.

And I can assure you... not all the people in wilmington are desperate enough to pass this sketchy issue.

I would hope not. Even if it fails, the casino folks will keep coming back until something passes.

Couldn't there be an issue on the ballot next time to ban casinos in Ohio?  Sure. they're already illegal in the state, but it would reinforce the stance.

At this point I'm somewhat ambivalent on the up or down issue, but if Ohio does allow casinos, it needs to be on the state's terms, and the voters should have the power to set terms that are best for them.

 

This whole business of rewriting the fricking constitution to serve one incredibly profitable private interest group is pure bunko.

This whole business of rewriting the fricking constitution to serve one incredibly profitable private interest group is pure bunko.

 

Quoted for emphasis.

I'm not opposed to gambling, but I didn't like the Wilmington plan. I voted no.

I'd vote for gambling in Ohio if the deal was better.  Maybe bidding off the licenses to the highest bidders, only allowing x casinos to be built every few years, requiring they be located a minimum distance from eachother, closing that "0 tax" loophole (even though it was an unlikely loophole anyway), etc.

Wilmington worried about pending DHL announcement

http://www.daytondailynews.com/b/content/oh/story/business/2008/11/07/ddn110708dhlweb.html

 

With the German owner of DHL Express preparing a public announcement next week about its restructuring to cut multimillion-dollar losses in its U.S. package delivery operations, officials are concerned that could speed the pace of job losses at DHL's domestic freight hub in Wilmington.

 

DHL declined on Friday, Nov. 7, to say what John Mullen, global chief executive officer of its German parent, Deutsche Post World Net, will announce on Monday.

 

But the U.S. economic slump and its drag on the number of packages being shipped through the express delivery industry is cause for concern in Wilmington, Mayor David Raizk said.

 

Full story at link above:

Rumor flying of DHL pullout

Struggling shipper may end U.S. delivery, aiding rivals, some say

Monday,  November 10, 2008 3:01 AM

By Samantha Bomkamp and Harry R. Weber

 

ASSOCIATED PRESS

NEW YORK -- As the German parent of struggling shipper DHL prepares to release third-quarter results, analysts and industry observers predict that Deutsche Post AG will announce major changes at DHL, though it's unclear whether those changes would affect a deal DHL has been working out with rival UPS.

 

Unions that represent some DHL employees and pilots that provide air service for some of DHL's shipments said last week that they had not been told of any upcoming changes.

 

But DHL scheduled a conference call with reporters for this afternoon to discuss news that was to be announced earlier in the day and answer questions about DHL's U.S. Express business.

 

More at:

 

http://dispatch.com/live/content/business/stories/2008/11/10/ups_dhl_monday.ART_ART_11-10-08_C12_S1BQOF0.html?sid=101

It sounds like they are ending all domestic operations. That's not good for Wilmington and Southwest Ohio since that facility is a hub for domestic operations.

ragerunner....  you nailed it.

 

http://columbus.bizjournals.com/columbus/stories/2008/11/10/daily1.html

 

Monday, November 10, 2008 - 9:03 AM EST  | 

Modified: Monday, November 10, 2008 - 9:26 AM

DHL to drop domestic shipping, may close Wilmington hub

Business First of Columbus

 

The ax will likely fall as expected on DHL’s package shipping operation in Wilmington, after the company announced Monday morning that it will offer international services only in the United States beginning Jan. 30.

 

DHL’s parent, Deutsche Post World Net, said in a news release that it will close its U.S. ground hubs, reduce its stations to 103 from 412, and eliminate an additional 9,500 jobs. It didn't provide details on the fate of specific operations.

 

The toll in Wilmington has been estimated to be about 8,000 jobs, where ABX Air and Astar Air Cargo currently provide air cargo transport services for the company, and ABX operates DHL’s privately owned airport, Wilmington Air Park.

 

 

Find this article at:

http://money.cnn.com/2008/11/10/news/companies/dhl/index.htm 

 

 

 

These German companies love to lay off US workers. Seriously, a big reason many of them expand into the US is simply b/c it's far easier to reduce their US workforce than it is to lay off German workers.

These German companies love to lay off US workers. Seriously, a big reason many of them expand into the US is simply b/c it's far easier to reduce their US workforce than it is to lay off German workers.

 

?

 

I am sure if the return on investment was still there they would continue to operate the US domestic operations. I'm not sure you can turn these economic events into a one country craps more on another country discussion. I am sure there are plenty of US companies that have layoff and closed German facilities in the past as well.

These German companies love to lay off US workers. Seriously, a big reason many of them expand into the US is simply b/c it's far easier to reduce their US workforce than it is to lay off German workers.

 

?

 

I am sure if the return on investment was still there they would continue to operate the US domestic operations. I'm not sure you can turn these economic events into a one country craps more on another country discussion. I am sure there are plenty of US companies that have layoff and closed German facilities in the past as well.

 

It was a generalization sure. All I'm saying is that German companies are notorious for expanding into the US largely so they have flexibility to layoff their workforce if necessary. In Germany laying off workers is like pulling teeth, plus you have to give them generally at least a full years salary, and usually a lot more.

 

Of course if DHL was doing well they wouldn't lay them off, but you know they're going to wipe out their American operations first if they need to get their balance sheet in order.

The logic doesn't hold. What really is happening is that the Germans have a hard time cracking the U.S. market. They make big investments only to see it fail. They have lost tons of money on these failed moves (Chrysler, DHL).

More of a reason we should NEVER sale our businesses to foreign entities. I wonder now how many American companies will continue to ship international with DHL.

One of DHL's big domestic customers is the State of Ohio. Guess that's going to be changing.

January 30, 2009... last day of operation in Wilmington. First day of the future for new Wilmington. Let the brainstorming begin.

 

Could that site be changed into a commercial airport?  Seems like a discount airline would work attracting budget shoppers from the whole region.  Too bad the airport is south of Wilmington, not north where it would be adjacent to I-71.

Bypass-73 will make the lack of connection to 71 issue obsolete. www.wilmingtonbypass.com

I heard rumors of converting it to a commercial airport if and only if issue 6 passed. I don't know whether or not that would still be a possiblity without the resort.

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