Local carpet mill loses state job to foreign manf.
nadams
Posts: 5,877
This story regards the carpet company where my dad has been an employee for 28 years. Sad that they can't do something about this. This is from our local paper, The Press Enterprise.
Bloom Carpet trims workweek
Cuts forced by loss of state-funded job
to firm that weaves overseas, execs say
By MICHAEL LESTER
Press Enterprise Writer
SOUTH CENTRE TWP. Bloomsburg Carpet has shortened its workweek to four days this month after being outbid for a state job that will now be done overseas, officials say.
The plant, which employs 228 on three shifts, is
having trouble getting orders.
But it would still be operating five days a week if it had landed a bid for a taxpayer-funded carpeting project at the Pennsylvania Convention Center, the company says. Instead, the winning bidder was a New Jersey firm that will weave the carpet on foreign soil.
Bloomsburg Carpet, on Route 11 between Bloomsburg and Berwick, was bidding to manufacture about 30,000 square yards of carpeting for the
center in Philadelphia, which is undergoing a $786 million, taxpayer-funded expansion. Such a contract would have kept Bloomsburg Carpet busy for
eight to nine months and paid the firm about $1.2 million.
But Couristan of Fort Lee, N.J., submitted a lower price for the work.
Though based in New Jersey, Couristan manufactures all its carpet at foreign plants, said company spokesman Larry Mahurter.
Its Pennsylvania taxpayer money paying for this carpet, said Marty Bowman, Bloomsburg Carpets executive vice president.
Our response was, Keep the jobs in Pennsylvania even though it costs a little more. We really needed that job to keep our people employed.
We should have gotten special consideration.
Catch-22
At the request of Bloomsburg Carpet, state Sen. John Gordner and state Rep. David Millard made efforts at the state level to help the company get reconsidered for the convention center project after bids were
submitted.
With that intervention, Gordner said, Bloomsburg Carpet had an opportunity
to sharpen its bid, but they were still unable to be the low bidder, and it wasnt close.
Gordner described the predicament as a catch-22.
He said it was unfortunate a Pennsylvania company lost out to an out-of-state firm for the work.
But, Gordner added, the selection of the lowest bidder was good for taxpayers because state lawmakers have no appetite to pour even more money into the convention center expansion.
My allegiance is with Bloomsburg Carpet, because its jobs in the area. They
make incredibly good-quality carpet, Gordner said. I certainly did everything I could within reason.
Bowman acknowledged Gordner and Millard really tried to help us.
Bowman said his firms bid was $36 to $37 per square yard of carpet. He was told Couristan submitted a bid of $33 per square yard.
Bowman said hes not sure how long the four-day workweek will last. Hes hopeful the plant will return to full operation by Thanksgiving.
Its very slow right now, Bowman said.
Flat-out unlawful
Joseph Resta, project director for the convention center expansion, said it would be flat-out unlawful to hand Bloomsburg Carpet a public contract when it was not the lowest bidder.
I understand that (Bloomsburg Carpet) is frustrated, Resta said. We put
our best effort forward to make sure they competed on a level playing field. All of us wanted to see if the company from Bloomsburg could compete.
Resta said the convention center was not directly responsible for soliciting bids for the carpet.
That job was held by Baumgardner Floor Covering, an Egg Township, N.J.,
firm that won a bid as carpet installer, said Resta.
Mahurter, the Couristan spokesman, was not aware which of the companys foreign plants would make the carpeting for the center, but Couristans Web site says its Chinese plant is where Couristan manufactures Axminster carpet.
Bowman said the contract was for that style carpet, adding his firm is the only one in the U.S. that makes Axminster.
Contact Reporter Michael
Lester at 387-1234, ext. 1311 or
at mike.l@pressenterprise.net.
Bloom Carpet trims workweek
Cuts forced by loss of state-funded job
to firm that weaves overseas, execs say
By MICHAEL LESTER
Press Enterprise Writer
SOUTH CENTRE TWP. Bloomsburg Carpet has shortened its workweek to four days this month after being outbid for a state job that will now be done overseas, officials say.
The plant, which employs 228 on three shifts, is
having trouble getting orders.
But it would still be operating five days a week if it had landed a bid for a taxpayer-funded carpeting project at the Pennsylvania Convention Center, the company says. Instead, the winning bidder was a New Jersey firm that will weave the carpet on foreign soil.
Bloomsburg Carpet, on Route 11 between Bloomsburg and Berwick, was bidding to manufacture about 30,000 square yards of carpeting for the
center in Philadelphia, which is undergoing a $786 million, taxpayer-funded expansion. Such a contract would have kept Bloomsburg Carpet busy for
eight to nine months and paid the firm about $1.2 million.
But Couristan of Fort Lee, N.J., submitted a lower price for the work.
Though based in New Jersey, Couristan manufactures all its carpet at foreign plants, said company spokesman Larry Mahurter.
Its Pennsylvania taxpayer money paying for this carpet, said Marty Bowman, Bloomsburg Carpets executive vice president.
Our response was, Keep the jobs in Pennsylvania even though it costs a little more. We really needed that job to keep our people employed.
We should have gotten special consideration.
Catch-22
At the request of Bloomsburg Carpet, state Sen. John Gordner and state Rep. David Millard made efforts at the state level to help the company get reconsidered for the convention center project after bids were
submitted.
With that intervention, Gordner said, Bloomsburg Carpet had an opportunity
to sharpen its bid, but they were still unable to be the low bidder, and it wasnt close.
Gordner described the predicament as a catch-22.
He said it was unfortunate a Pennsylvania company lost out to an out-of-state firm for the work.
But, Gordner added, the selection of the lowest bidder was good for taxpayers because state lawmakers have no appetite to pour even more money into the convention center expansion.
My allegiance is with Bloomsburg Carpet, because its jobs in the area. They
make incredibly good-quality carpet, Gordner said. I certainly did everything I could within reason.
Bowman acknowledged Gordner and Millard really tried to help us.
Bowman said his firms bid was $36 to $37 per square yard of carpet. He was told Couristan submitted a bid of $33 per square yard.
Bowman said hes not sure how long the four-day workweek will last. Hes hopeful the plant will return to full operation by Thanksgiving.
Its very slow right now, Bowman said.
Flat-out unlawful
Joseph Resta, project director for the convention center expansion, said it would be flat-out unlawful to hand Bloomsburg Carpet a public contract when it was not the lowest bidder.
I understand that (Bloomsburg Carpet) is frustrated, Resta said. We put
our best effort forward to make sure they competed on a level playing field. All of us wanted to see if the company from Bloomsburg could compete.
Resta said the convention center was not directly responsible for soliciting bids for the carpet.
That job was held by Baumgardner Floor Covering, an Egg Township, N.J.,
firm that won a bid as carpet installer, said Resta.
Mahurter, the Couristan spokesman, was not aware which of the companys foreign plants would make the carpeting for the center, but Couristans Web site says its Chinese plant is where Couristan manufactures Axminster carpet.
Bowman said the contract was for that style carpet, adding his firm is the only one in the U.S. that makes Axminster.
Contact Reporter Michael
Lester at 387-1234, ext. 1311 or
at mike.l@pressenterprise.net.
Ludicrous gibs!
Post edited by nadams on
Comments
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BTW- if you're ever watching TV and see footage from the House of Representatives or the Senate... look down. That's Bloomsburg Carpet.Ludicrous gibs!
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Yup. The carpet industry has been on its way out for a long time now. I live in Ringgold, GA which is basically a suburb of Chattanooga, TN and it along with Dalton, GA right down the road used to be the center of the carpet universe. The city of Dalton was practically built by the carpet industry. Candlewick, Salem, Mohawk, Shaw and a bunch of others. When I was in high school back in the late 80's, several classmates parents worked at a carpet mill making $12-15/hr which was awesome back in the 80's! Wasnt too long before the carpet mills started bringing in illegal aliens from Mexico to work in their mills for $3-5/hr.
That got so bad that the majority of Dalton's population is almost all Mexican. A lot of the signs and billboards there are in Spanish as well.
Shaw Industries started buying out most of the carpet mills and now own 90% of them but theyre still struggling. Around half the carpet mills in this area have been closed and the ones that are open still are doing rotating lay offs where one group will be off a week then another group the next.
If I were in the textile/carpet industry, I would be looking for a way out pretty quick cause with the illegal aliens working for $2/hr and the rest being farmed out to China and Indonesia, there aint gonna be a place for them in the near future.polkaudio sound quality competitor since 2005
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What ought to be “flat-out unlawful” is having the carpet made overseas. Something the asshats don't get is that the lowest bidder is usually the lowest bidder because the quality is lower. Not to mention that unemployed American workers are costing the taxpayers BIG time and hey, if the American workers aren't working, they aren't paying taxes.Political Correctness'.........defined
"A doctrine fostered by a delusional, illogical minority and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a t-u-r-d by the clean end."
President of Club Polk -
What ought to be flat-out unlawful is having the carpet made overseas. Something the asshats don't get is that the lowest bidder is usually the lowest bidder because the quality is lower. Not to mention that unemployed American workers are costing the taxpayers BIG time and hey, if the American workers aren't working, they aren't paying taxes.
Amen to that. I'm in the country that is probably going to make that carpet.
We just can't continue to outsource 'everything'.
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Polk Lsi-7s, Def Tech 8" sub, HK 3490, HK HD 990 (CDP/DAC), AKG Q701s
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What a crock. I can understand the legalities involved, and I hope the bid request was well written to cover quality aspects, but after some of the toxins and poison ingredient episodes of the recent past I hope this was looked at closely. That $90,000 savings while not a drop in the bucket would be nothing if it all needs to be ripped out and replaced next year because of toxic fumes causing nausea or itchy skin to patrons or employees of the convention center. I also wonder how fast that $90,000 would disappear when the lost income tax revenues (32 hr/40 hr individual and 1.2 mil corp.) Not to mention those workers may be entitled to partial unemployment comp.
Of course this is all "what if's" I just hope they really looked at all considerations.
I started this yesterday then the server crashed, but figured I'd post it anyway even though F1 already said it. -
and after it is installed and the temp rises or something the china rug will give off some kind of toxic fumes. will make people sick and cost twice as much to remove and then the taxpayers will have too the install u.s.a. rug anyway
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Simple solution - the corporate tax rate in the US is the 2nd highest (by less than .5%) in the world at 40%! What company would want to stay here and be forced to pay nearly half their profits in taxes. Look at the Exxon. I remember reading that one quarter this year they made 11 billion - but they paid 30 billion in taxes the same quarter! Regardless if you think Exxon is an evil corporation with obscene profits or not, paying 3 times more in taxes than your take home pay is just wrong on any level!
Who has one of the fastest growing economies? Ireland. Who has the lowest corporate tax rate in the world? Ireland.
Slash the corporate tax rate to 10% and then get out of the way of the flood of overseas businesses that will come back to our shores. Then watch unemployment drop to about 3%.polkaudio sound quality competitor since 2005
MECA SQ Rookie of the Year 06 ~ MECA State Champ 06,07,08,11 ~ MECA World Finals 2nd place 06,07,08,09
08 Car Audio Nationals 1st ~ 07 N Georgia Nationals 1st ~ 06 Carl Casper Nationals 1st ~ USACi 05 Southeast AutumnFest 1st
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Simple solution - the corporate tax rate in the US is the 2nd highest (by less than .5%) in the world at 40%! What company would want to stay here and be forced to pay nearly half their profits in taxes. Look at the Exxon. I remember reading that one quarter this year they made 11 billion - but they paid 30 billion in taxes the same quarter! Regardless if you think Exxon is an evil corporation with obscene profits or not, paying 3 times more in taxes than your take home pay is just wrong on any level!
Who has one of the fastest growing economies? Ireland. Who has the lowest corporate tax rate in the world? Ireland.
Slash the corporate tax rate to 10% and then get out of the way of the flood of overseas businesses that will come back to our shores. Then watch unemployment drop to about 3%.
Add to that state taxes, workman's comp, unemployment insurance, and probably a couple more "Gov. costs" to do business here. Without those corp. America could do more to offer medical insurance, compete against off shore prices and still offer a decent pay.
Or just pocket the windfall profits they would see, in which case I think they would be hard pressed to find willing productive workers. I'd like to see how it would play out, probably would never happen though as that would just about crush the redistribution of wealth around the world as the UN would like to see it.
Sorry for the rant -
Don't have to be sorry,our economy has been going in that direction for years. Now the morons in charge figure they can raise taxes even more on buisnesses and the economy will turn around. Some should go back to their college and ask their economics professor for a refund. Proof positive that the average american voter is not the sharpest tool in the shed.HT SYSTEM-
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Keep in mind, too, that the winning bid was only a few dollars less per sq yd than the domestic product. How much more do you think that chinese company will be profiting from this job than Bloom Carpet ever would've?Ludicrous gibs!
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Simple solution - the corporate tax rate in the US is the 2nd highest (by less than .5%) in the world at 40%! What company would want to stay here and be forced to pay nearly half their profits in taxes. Look at the Exxon. I remember reading that one quarter this year they made 11 billion - but they paid 30 billion in taxes the same quarter! Regardless if you think Exxon is an evil corporation with obscene profits or not, paying 3 times more in taxes than your take home pay is just wrong on any level!
Who has one of the fastest growing economies? Ireland. Who has the lowest corporate tax rate in the world? Ireland.
Slash the corporate tax rate to 10% and then get out of the way of the flood of overseas businesses that will come back to our shores. Then watch unemployment drop to about 3%.
Then how would we pay for our new healthcare plan? /sarcasm
Ever think that they COULDNT bid less? Remember, they werent competing with another company that was going to have this made in america, it was overseas with workers making less than half of what this carpet manufacturer pays.They should have lowered their bid so that there was no chance they would get under bid by somebody else. This happens to me to as well, I bid on a job I want to make more money, I could have done it for $1500 less but I did'nt bid low enough and some other IT guy gets the job.
-CodyMusic is like candy, you have to get rid of the rappers to enjoy it -
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Don't forget everyone can just work in a service industry, we don't actually need to make anything. Saving a few dollars actually created jobs because somewhere along the line economists proved mathematically that moving all production to china is a good thing for everyone, everywhere . . . . And yes, i remember a time when even blue jeans were made in the US, now levi's are made overseas . . . .
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Don't forget everyone can just work in a service industry, we don't actually need to make anything. Saving a few dollars actually created jobs because somewhere along the line economists proved mathematically that moving all production to china is a good thing for everyone, everywhere . . . . And yes, i remember a time when even blue jeans were made in the US, now levi's are made overseas . . . .
+1
And seeing Levi's new 'patriotic' commercials make my blood boil. :mad:
I stopped buying Levi's years ago, you can't hardly find two pairs in a stack, that are made in the same country, and as a result, consistency is completely gone. -
As long as our standard of living and the wages we pay people in this country stays so far above the rest of the world, then these jobs will continue to leave our shores. I'm not saying our standard of living is bad, but there just no way a business is going to continue to pay some union guy $30 an hour to do a job someone in Mexico or China will do for $2 a day, with no bathroom breaks. The bottom line is profit and thats just the way it is.Music and Movie Rig
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Bottom line is stupid Americans have to save that couple of dollars and screw ourselves by buying foreign products. Also there are more workers than bussiness owners. Polititions get more votes buying people, and tax our companies out of the country. As long as we keep sending money out of the country we lose that money plan and simple. Any fools that think America can survice as a service country is on crack. Relying on foreign countrys like china is a very bad thing. The chinese don't like Americans. They like American dollars. If we went to war with them or one of their allies we would be screwed out of goods. Also if we keep getting so dependant on china they can hike the prices of their junk in the future when we have become totally dependent. Keep buying forien dumbass Americans. We deserve what we are getting. If you disagree with me I hope you lose your job and can't even afford any of that chinese crap you have been buying.Please. Please contact me a ben62670 @ yahoo.com. Make sure to include who you are, and you are from Polk so I don't delete your email. Also I am now physically unable to work on any projects. If you need help let these guys know. There are many people who will help if you let them know where you are.
Thanks
Ben -
It's not just people wanting cheaper goods. There are plenty of companies that were quite profitable manufacturing goods in the US. They move jobs out of the US to make even more profit, often at the demand of shareholders. It's greed, pure and simple.
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pmckeealaska wrote: »As long as our standard of living and the wages we pay people in this country stays so far above the rest of the world, then these jobs will continue to leave our shores. I'm not saying our standard of living is bad, but there just no way a business is going to continue to pay some union guy $30 an hour to do a job someone in Mexico or China will do for $2 a day, with no bathroom breaks. The bottom line is profit and thats just the way it is.
Generally, I'd agree with you. However, Bloom Carpet is a NON UNION shop, and you're looking at $14/hr tops if you've been there for longer than I've been alive...
When I worked there, it was a great place to be. No Union BS, and if you didn't like what went on, it was up to you to leave.Ludicrous gibs! -
Yeah, this is BS. There should be a preference on "local" companies/offers. If they're within a certain % of the lowest bid, then the "local" company gets the job.
Stifles competition a bit, but also keeps people working."Dr Dunn admitted that his research could also be interpreted as evidence that women are shallower than men. He said: "Let's face it - there's evidence to support it."
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It's not just people wanting cheaper goods. There are plenty of companies that were quite profitable manufacturing goods in the US. They move jobs out of the US to make even more profit, often at the demand of shareholders. It's greed, pure and simple.
I agree. It is kinda late, but companies that are pure profit driven with no regards to the American citizen should have been boycotted. Also that NAFTA EFed us up real good. If you can buy comparable American products please do so.Please. Please contact me a ben62670 @ yahoo.com. Make sure to include who you are, and you are from Polk so I don't delete your email. Also I am now physically unable to work on any projects. If you need help let these guys know. There are many people who will help if you let them know where you are.
Thanks
Ben -
Here is a start don't shop at wal mart.....Some final words,
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you're going to have headaches."
Warren -
Pretty sad what is happening in the US these day's, job's being outsourced, governmant "bailout" money going to pay CEO's bonusses before the companies fold, not very much help from the government for the people....
I really feel for you guy's that have found yourselves on hard time's
We feel it here in Canada as well and it has also spread across the world, it's all a part of "their" plan.Media Room 7.1
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pmckeealaska wrote: »As long as our standard of living and the wages we pay people in this country stays so far above the rest of the world, then these jobs will continue to leave our shores. I'm not saying our standard of living is bad, but there just no way a business is going to continue to pay some union guy $30 an hour to do a job someone in Mexico or China will do for $2 a day, with no bathroom breaks. The bottom line is profit and thats just the way it is.
This makes perfect sense. I'm in China as I write. The average worker here is making about 145 U.S. Dollars a month. He is a migrant worker who does not have legitimate status within the city or zone he/she is working. In other words they are either 'illegals' or have temporary worker status.
Even at that low rate, these PEASANTS, and China is still an agrarian society with 60 percent of its people considered peasant farmers..., that 145 dollars represents more money than they could make farming? You do the math....
What is 60 percent of 1.4 billion people. Can the U.S. compete with that?
NO!
As long as China can continue to grow at least 8 percent per year it will not have much social 'unrest' but if it falls much beneath this watch out!
In essence what we are witnessing is, in fact, a LEVELING of lifestyles and buying power across the world. As the developing world's standard of living rises, Developed countries lose jobs, their money is worth less and products will become either more expensive or people will purchase less and live at a LOWER standard than they are used to.
It isn't necessarily China's fault, though they 'certainly' benefit from this. But the fact that LABOR is no longer 'located' anywhere. The Plant moves to where the labor is Cheapest. Today China, tomorrow India, the day after that Vietnam, etc.
The economic mechanism is refered to as 'small batch production' meaning you do NOT overproduce. You produce 'enough' for a market and when you see a CHEAPER opportunity you MOVE your facilities because you don't have a glut of product. A good example of this is the way Nike shoes operate...take a look at where they are made....different styles, years...some in China, some in Vietnam, some in Korea, and so on...
Well, I haven't really solved anything. But I can tell you that the Chinese do not 'hate' us...at least the people don't.
cnhCurrently orbiting Bowie's Blackstar.!
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Gosh, it's all very logical. I can hardly wait to become a third world country.
I'm glad we can al help in the cause of all the other countries to become equal.
I'll be looking forward to making $145 a month and moving my family under a bridge.
Is there anything else I can do to help the top 1% of Americans to go from
making 95% of all the money to 99%?
But never fear, the stock market is back up there. Nobody knows why,
but if it's up around 10k, the economy must not need any jobs to survive.
It's magic, I tell you."The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson -
This makes perfect sense. I'm in China as I write. The average worker here is making about 145 U.S. Dollars a month. He is a migrant worker who does not have legitimate status within the city or zone he/she is working. In other words they are either 'illegals' or have temporary worker status.
Even at that low rate, these PEASANTS, and China is still an agrarian society with 60 percent of its people considered peasant farmers..., that 145 dollars represents more money than they could make farming? You do the math....
What is 60 percent of 1.4 billion people. Can the U.S. compete with that?
NO!
As long as China can continue to grow at least 8 percent per year it will not have much social 'unrest' but if it falls much beneath this watch out!
In essence what we are witnessing is, in fact, a LEVELING of lifestyles and buying power across the world. As the developing world's standard of living rises, Developed countries lose jobs, their money is worth less and products will become either more expensive or people will purchase less and live at a LOWER standard than they are used to.
It isn't necessarily China's fault, though they 'certainly' benefit from this. But the fact that LABOR is no longer 'located' anywhere. The Plant moves to where the labor is Cheapest. Today China, tomorrow India, the day after that Vietnam, etc.
The economic mechanism is refered to as 'small batch production' meaning you do NOT overproduce. You produce 'enough' for a market and when you see a CHEAPER opportunity you MOVE your facilities because you don't have a glut of product. A good example of this is the way Nike shoes operate...take a look at where they are made....different styles, years...some in China, some in Vietnam, some in Korea, and so on...
Well, I haven't really solved anything. But I can tell you that the Chinese do not 'hate' us...at least the people don't.
cnh
Another part of this is creating consumers. How many TVs, PCs, cell phones, etc. can we buy? Take that 60% that cnh mentions and now @ $145 a month they now can purchase things they never could before. Not only do these companies get cheaper labor, but they create a much larger consumer market at the same time. The Chinese government created special economic zones where much of this "gold rush" took place and all these migrant workers flocked to. Now the labor rates have increased in these areas to a point, where some of these companies have moved out of these areas to obtain cheaper labor. Not sure if they forfeit tax breaks or pay a larger license fee to do this or what, but they feel it is worth it. This is also why others have moved to other countries (Vietnam, India). It's probably 15 -20 years away but Africa will become a player in this economic shift as well.
I think this same thing happened in the US around the turn of the century when the farm boys moved to New York, Detroit, Pittsburg, etc. to fuel the "industrial revolution". Then many of these companies moved operations to the south, then further south to Mexico, and now off shore.
The "Buy American, the job you save may be your own" of the 70's may have worked if we, in huge numbers, practiced it. But it's too late now, as it is next to imposable to find American made. -
sucks2beme wrote: »Gosh, it's all very logical. I can hardly wait to become a third world country.
I'm glad we can al help in the cause of all the other countries to become equal.
I'll be looking forward to making $145 a month and moving my family under a bridge.
Is there anything else I can do to help the top 1% of Americans to go from
making 95% of all the money to 99%?
But never fear, the stock market is back up there. Nobody knows why,
but if it's up around 10k, the economy must not need any jobs to survive.
It's magic, I tell you.
That's about what the plan is. At that rate no one will be able to have the revenue to finance a business start up, except for that 1%. You know eliminating the competition is easier than beating the competition. -
Governor Edwin Rendell at his best!!
This guy is sleazier than an eBay scammer. But, the heavily dominated blue collar and Union work force keep electing Democrats. After all, they are looking out for the working man.
Ed Rendell enjoys a 70% approval rating across the state. Hold on Noah! He will raise your taxes real soon!Carl -
Ed Rendell is a ****. I don't know who the hell voted him into office. Every farmer I've talked to has said it wasn't him...Ludicrous gibs!
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sucks2beme wrote: »Is there anything else I can do to help the top 1% of Americans to go from
making 95% of all the money to 99%?
Man, you are right on. I find this stat actually frightening. And as Ben said earlier, we Americans are quite stupid to buy half this crap from China...bad drywall, dog food, tooth paste, and for God's sake....FOOD??? Why are we subsidizing farmers in this country and then buying FOOD from China that has God knows what in it? The only reason I'm going to Walmart from now on is to hopefully have 2 hot babes offer to wash my windshield...
