sad news ><> ><> ><>............

Penn Reel to shut down Schuylkill County plant
Approximately 85 jobs to be lost in the process

From NewsItem.com

HEGINS — Penn Fishing and Tackle Manufacturing Co. recently announced its plans to shut down its Hegins production facility, leaving approximately 85 workers without jobs.

“It is unfortunate, but cost pressures from overseas competition make it impossible for us to continue operating at the Hegins facility,” said Kevin Martin, Penn CEO. “We will do everything possible to help our employees find new jobs, and we will make every attempt to sell our facility to an employer that can hopefully bring new jobs to the area.”

The facility, located at 218 Dell Road, has been making fishing tackle, namely spinning reels, since 1968. Roughly 85 employees will lose their jobs beginning in May and continuing through July, according to Martin. The company plans to move some of the operations from Hegins to its Philadelphia facility, while the remainder will be shipped overseas.

“We will continue to offer the products (spinning reels) currently on the market,” said David Martin, the chief financial officer. “But they will be made at other facilities where we can be more cost-competitive.”

Penn employees will be provided with a severance package, and job assistance that will include training on resume writing and how to find new employment.

In addition, Penn will be submitting a trade petition to the Pennsylvania Department of Labor and Industry. Since some of the jobs are going overseas, the trade petition will enable the government to provide the employees with additional training opportunities.

Penn’s Philadelphia manufacturing facility will not be affected by the closing of the Hegins facility. The Philadelphia plant makes a different type of fishing reel.

Penn is a privately owned company that has been manufacturing fishing reels in the United States since 1932. The Hegins plant has been in operation since the late 1960s. Many people employed there have been with the company for more than 30 years. Several employees have been working at the plant since graduating from high school.

“This is what makes it so tough,” said one employee who has spent more than 25 years with the company. “I’d be willing to say there are about 30 of us with more than 25 years of service. Some of us never had to look for a job before in our lives. I don’t know the first thing about where to turn or what to do.”

According to the employee who has been working there all his life, the workers who have more than 20 years of service were told they would receive eight-weeks pay as a severance package.

In a letter dated March 3 to Christine Enright, chief of the Labor Department’s Rapid Response/Trade Coordination Services, Kevin Martin said the shutdown is not expected to occur at one time, but will be done in stages. While an exact date has not yet been established for the plant’s closure, Penn Fishing Tackle expects that the first stage of layoffs will occur May 2, or within a 14-day period thereafter. Penn Fishing Tackle anticipates approximately 86 employees will be laid off.

The longtime employee of the plant said no one was offered to relocate to the Philadelphia facility. “I’m not real sure how long that plant will be in operation,” said the local employee. “They say it won’t affect that plant, but… I believe that particular plant won’t be in operation too much longer either.

“When this company was family owned, it was a wonderful company to work for,” the employee added. “We were treated fairly and with respect, and in the last couple of years it has just gone downhill. I believe there are too many crooks in Philadelphia mismanaging the company.”

Can't say I'm really surprised, and wonder what took them so long.

The U.S. economy is/has been moving away from manufacturing and towards services.

There would have been some hope to keep jobs here ...

... had the company stayed on top of product innovation and quality.

But they didn't.

Only 8 weeks severance for 20 years of service? Crikey, that sucks.

I agree with Weewee. It is inevitable that their reels are made overseas. I feel bad for the workers but as long consumers continue to shop at Walmart and demand very low prices for goods, manufacturing in the US is going to disappear.

Sounds like someone should hire them to make a waterproof 706 with infinite antireverse.

I have a good friend who works in the repair department at Penn. He works in the Philly facility though. He tells me a lot of the manufacturing is being done in North Korea now. I doubt the quality will be that good as they have had many problems with the new spinning reels since they came out. He told me to stay away from them they are junk. Too bad. Global market requires company to seek the cheapest labor which usually means cheap quality. P.M.

Well, it's official. One of the very few reasons that would steer me to still purchase new Penn Products has caught an Airbus over the Pacific.

Say good-bye to Made in USA Slammers, Liveliners and SS, and say good-bye to the 704 and 706 period. :(

“It is unfortunate, but cost pressures from overseas competition make it impossible for us to continue operating at the Hegins facility,”

Really, so why are Shimano, and Daiwas so freikin exspensive then.... :hang:

Really, so why are Shimano, and Daiwas so freikin exspensive then.... :hang:

made in Japan. Penn will probably be made in Taiwan.

Why is it that everyone thinks that the quality goes down when the product is made overseas, isnt Toyota and Honda made in Asia (as well as in USA)?

I surprised to see that low level jobs are still here. If the American worker demands higher saleries the jobs will be shipped over seas. Lets face it everyone a person slapping a reel together should not be making a high salary. It is unfortunate that everyone needs a good salary to survive but workers have to realize that their job is a low paying job and should not expect a high salary. The united states leads the world in innovation but we cannot compete with the labor force in asia or india for low level jobs

I feel for the folks who have been with the company for a long time and losing their job....its has got to suck!

I was joking to some folks at work about this subject and said I can see a college / high school or even middle school classroom with a video feed from India teaching a classroom in the heartland of USA with a low paying security guard watching the kids making sure the students are not messing around.

It will save millions on a school budget as the person in India with a PHD in math will be teaching students for 50-75% less than a teacher makes here plus the school system will not have to pay benefits which include a retirement. The only cost will be the fee for the teacher in India, the cost of the security guard, the related building costs and the cost of the video feed (video over IP). The feed will be free as most schools have free internet access mandated by the FCC.

Looks like a new bidness to get into :)

Why is it that everyone thinks that the quality goes down when the product is made overseas, isnt Toyota and Honda made in Asia (as well as in USA)?

I surprised to see that low level jobs are still here. If the American worker demands higher saleries the jobs will be shipped over seas. Lets face it everyone a person slapping a reel together should not be making a high salary. It is unfortunate that everyone needs a good salary to survive but workers have to realize that their job is a low paying job and should not expect a high salary. The united states leads the world in innovation but we cannot compete with the labor force in asia or india for low level jobs

I feel for the folks who have been with the company for a long time and losing their job....its has got to suck!

I was joking to some folks at work about this subject and said I can see a college / high school or even middle school classroom with a video feed from India teaching a classroom in the heartland of USA with a low paying security guard watching the kids making sure the students are not messing around.

It will save millions on a school budget as the person in India with a PHD in math will be teaching students for 50-75% less than a teacher makes here plus the school system will not have to pay benefits which include a retirement. The only cost will be the fee for the teacher in India, the cost of the security guard, the related building costs and the cost of the video feed (video over IP). The feed will be free as most schools have free internet access mandated by the FCC.

Looks like a new bidness to get into :)

Interesting concept but it would not work. Not to say that are schools do not need fixing - they certainly do - but the number one problem facing schools and students these days is the lack of support from the parents of many of these kids. Really sad.

I agree!

However, the savings are still there. The parents are not going to get involved if the best or worst instructor is there so why not save the money...

Sorry for the hijack

Reminds me of a US based outboard mfg. complaining about dumping by the Japanese... Never a mention of how Japanese products are priced higher than US but still seem to thrive. My Toyota 4 Runner is signficantly more expensive than many US competitors but it still sells pretty well.

Lurch is right on about the labor market. Its a global market and if the additional cost of distribution from Asia can be overcome by labor savings while at the same time maintaining or improving quality, its a pretty simple equation. When composition of a product is largely lower skilled workers, bye-bye...

Interesting idea about education. I think it works in theory, but in practice it is a stretch... the teachers union is just too powerful!!!

I am pretty sure that Penn is looking to North Korea for the manufacturing end. At least that is what my buddy tells me. P.M.

The united states leads the world in innovation but we cannot compete with the labor force in asia or india for low level jobs

i'm in agreement there.....but thats presently....as it stands now...but through innovation we will be able to compete globally with any labor force robotically. :nopain: :soon: :wid: :kewl: :btu:

The united states leads the world in innovation but we cannot compete with the labor force in asia or india for low level jobs

i'm in agreement there.....but thats presently....as it stands now...but through innovation we will be able to compete globally with any labor force robotically. :nopain: :soon: :wid: :kewl: :btu:

If this move is going to save Penn lots of dough, do you think that Penn will pass those savings on to you the consumer? That savings is going into the owners pocket.

As far a you teaching concept, I guess you have never spent an hour talking to a tech support person for Hp that was in India. There is a large communication gap there...

Penn reels have been my preference for 40 years. They have, however been declining in quality. I have two Penn Squidders that are 30 years old. Two years ago, I tried to buy a new one. Every one in the store had the same defect. The spool adjustment would not work. Across the board, thier models do not compare with those of the competition. This is sad, a piece of Americana is passing before our eyes. This must be a conspericy by the tree huggers and animal(fish) rights groups.

Gotta agree with specialist. The savings will not be past on to the customer on the series of reels on the market today. Just improving the margin.

[FONT=Arial] Its scary to see long time, US-based, companies ship over seas (Penn being the most recent), but what incentive does a manufacturing company have for staying in the US?

High cost in salaries, due to the high cost of living, prevents most products from being competitively priced in the market.

There's still jobs and money in the US (and more importantly NE), but most seem to be in the service or sales industry.

:huh:

When have we ever seen prices go down for ANYTHING? Having the jobs shipped over seas will only increase the profit marging of the products. The odd thing is that Penn does not have to listen to stock holders as they are a private company. Simply put the companies get more bang for their buck overseas!

When have we ever seen prices go down for ANYTHING? Having the jobs shipped over seas will only increase the profit marging of the products. The odd thing is that Penn does not have to listen to stock holders as they are a private company. Simply put the companies get more bang for their buck overseas!

Like I said before how is this a good thing then? They will not get a better price on materials, and are going to have to spend a ton of dough on tooling. If anything it will allow a company with a subpar product to be around a little longer. If they really wanted to compete, they could buy better components, maybe make a few design changes, and still have the reels assembled here in the USA. Their problem is that the reels have been unimproved for years, there is no smoothness compared to say a Stradic, or Stella. Eventually the only jobs that will be left in the good ole USA, will be the mega million dollar CEO.

This has been a long time coming.

Penn simply couldn't compete with companies like Tica and Okuma economically
speaking and couldn't match the quality of companies like Shimano.

It will be a shame to see the Z series reels disappear. :(

Unfortunately for Penn, I really beleive alot of their market was from folks that wanted to buy an american product. One would have tought that they could have kept some sort of american product line going, just to keep that reputation alive. I guess time will tell.

I can't say for sure, but it looks like Corporate America will be chasing cheap labor around the Globe for a while. It was South Korea in the 80's, NAFTA (Thanks Billy from AR) in the 90's and now companies are moving manufacturing from Korea and Mexico to China to get cheaper labor............I'm sure if West and Central Africa had any infastructure we would be right there, shipping would certainly be less than from China....

The only way we can compete is by taking labor out of our manufactured product.

We all need to vote with our money and avoid Chinese product whenever possible.........

Your right on there. From a business perspective, I'm sure they feel there is no other choice. They are taking off the table the very reason why they had so much customer loyalty.
The only way they could capture the market they may loosel would be offering a high end reel( high perfomance reel) at extremely competative price.

But when this dissolves the lower and middle class, and they stop purchasing products becuase their buying power is gone, who will but product regardless of where it is made? When the US turns into an 80% services nation, who here will have the money to buy these services? Will the foreign markets buy enough of our services to effect the trade imbalance? No. Devalue of the dollar? Budeget over runs? Over simplistic yes, but there is a real underlying problem and we as a nation are shooting ourselves in the foot.

In the 80s people said America as a nation had eclisped itself and we went on the decline. Technology pulled us out of that slide and brought a rise in America - what's the next big thing? What will fix the current slide?


Ooooops - soap box, I'm sorry...

A lot of people fail to realize that we now live in a global economy. The strength of the US economy is directly affected by economies around the globe. If you go out buy something made in Korea, where does that money go? It goes to people who can now buy US goods and services as well goods from around the world. When countries like China suddenly have money to spend on infrastructure and modernization where are they going to turn? Probably to the US.

The sending of jobs overseas is going to continue as long as there is an imbalance between the wages of countries. When China becomes too expensive, then the lost cost manufacturing jobs will be sent elsewhere. The American consumer has huge part in this by supporting places like Walmart who demand very small margins from the companys where it buys it goods. These companies have to send work overseas to compete. How many reels do you think Penn sells at Walmart? Stop shopping at Walmart and Target before you criticize corporations for sending work overseas.

This is not a topic that can be easily discussed in few paragraphs but I hope that you understand what I mean.

But when this dissolves the lower and middle class, and they stop purchasing products becuase their buying power is gone, who will but product regardless of where it is made? When the US turns into an 80% services nation, who here will have the money to buy these services? Will the foreign markets buy enough of our services to effect the trade imbalance? No. Devalue of the dollar? Budeget over runs? Over simplistic yes, but there is a real underlying problem and we as a nation are shooting ourselves in the foot.

In the 80s people said America as a nation had eclisped itself and we went on the decline. Technology pulled us out of that slide and brought a rise in America - what's the next big thing? What will fix the current slide?


Ooooops - soap box, I'm sorry...

I agree with you 110 %

I can tell you what China is doing with their $$ they are buying all of our natural resources, and extending us tons of credit... 20 years from now you might as well call us the united states of China.

When countries like China suddenly have money to spend on infrastructure and modernization where are they going to turn? Probably to the US. But China is now developing the tools and internal knowledge to do this on their own so while they will reap some of the harvest of the immediate in the jobs growth they will also be able to fuel much of what they need in the future on their own. Now even if they do buy services from us, how many Americans can be employed in the service industries that will be supported by money coming back in from China? Network Infrastructure? They have ripped off half of Cisco. PC Systems? They bought IBMs PC division. Granted - we ave them beat in software so if you work for Oracle you are probably OK. Operating systems? They're learing Linux

The sending of jobs overseas is going to continue as long as there is an imbalance between the wages of countries. When China becomes too expensive, then the lost cost manufacturing jobs will be sent elsewhere. All of our manufacturing jobs and those of Europe combined cannot employ the vast base of labor China has on the cheap. And if enough did, what is to say that they will buy from Boeing for 10% more than a subsidized product from Airbus? Not to mention that China is spending big bucks on developing aircraft systems (for example) on their own This is not a topic that can be easily discussed in few paragraphs but I hope that you understand what I mean.
Agreed

I just fear that the middle class as we have traditionally known it is going to falter. Not enough internal jobs of sufficient quality to keep Americans employed. When Dell ships several thousand call center jobs (services :smash: is that next? )to India and Pakistan and release thousands of marginally skilled people, - where are they to work? What square peg do they occupy in the pyramid of American jobs? When they are asking about your desire for fries or apple pie, where has their contribution into the economy gone? They can no longer afford to purchase the services that are the new underpinning of the American economy...

Now once all the "Services" jobs go over to these countries that have developed beyond manufacturing, what's next?

Waite till you see how many jobs will move out with the next increase in the minimum wage. They are looking at an additional $1.20 per hour.