Business
Locomotive orders plunge, leading to layoffs, GE says
GROVE CITY — Here’s a brutal figure: General Electric Co. hasn’t received a single locomotive order from any North American business this year.
That’s why the head of the company’s transportation GE division is calling for a “very tough’’ and “bleak’’ railroad market through 2010.
In an interview with Dow Jones Newswires, Lorenzo Simonelli said the economic downturn has bitten a large chunk out of the company’s sales. Simonelli took over GE’s Erie-based transportation unit in July 2008. The division includes its Grove City engine plant which employs more than 900 compared to 4,000 at the Erie plant which assembles locomotives.
Earlier this year Simonelli forecast locomotive production would fall 44 percent. But that prediction looks rosy compared to his latest assessment that production could fall another 50 percent from this year’s level as the company works on filling its backlog of previous orders.
Based on those figures, locomotive production in Erie would be slashed from 861 to around 240 in 2010. Simonelli said there’s the possibility of more permanent layoffs in Erie. A manager at GE’s Grove City plant said it was “highly likely’’ layoffs are looming there for what has become one of Mercer County’s largest industrial employers.
Stephan Koller, a spokesman for the transportation division, confirmed Simonelli’s comments.
“It’s not a very pleasant picture,’’ Kollar said.
Although GE landed a contract earlier this year to build 20 locomotive kits for Indonesia, that isn’t nearly enough to offset the sharp downturn in orders.
Since the Grove City plant also serves the marine and stationary power markets it has fared better — so far — than its sister plant in Erie. In February GE announced 350 permanent job cuts and placed another 1,200 workers on temporary, lack-of-work layoffs. By contrast only a dozen or so workers were laid off in Grove City.
Kollar said in the short term there is a “high likelihood’’ of more permanent layoffs within the company but declined to say how many or where they would come.
There are signs layoffs could be announced within weeks. A couple weeks before the last round of layoffs were announced top GE executives sounded similar public warning whistles that a steep downturn in orders might result in employment rolls getting cut sharply.
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Court: No benefits to worker who damaged equipment
Commonwealth Court has supported the findings in an unemployment compensation case, and the conclusion that a former employee of a local company was not entitled to benefits.
Bruce R. Taylor was fired May 8, 2009, from G.W. Becker Inc., Hermitage, after a lathe he was moving from a truck to the company’s Grove City plant fell off a forklift and was destroyed.
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Under new management — Ill. company takes over SV mall
The Shenango Valley Mall in Hermitage is under new management.
Chicago-based Urban Retail Properties LLC has been awarded the contract for management and leasing services effective immediately, according to a news release issued Tuesday.
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FNB earns 16 cents a share in 2nd Q
FNB Corp. had a “solid” second quarter, the Hermitage-based financial company’s president and chief executive officer said Monday.
“I’ve very pleased with the quarter. We made 16 cents (per share),” Stephen J. Gurgovits said. “It just turned out to be a very good quarter.”
Loans and deposits are up and expenses are stable, he said.
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Grant to pay for land study
Penn-Northwest Economic Development Corp. has received a $129,360 planning grant to perform a market analysis of the 218 acres Mercer County owns at Interstate 80 and Route 19 in East Lackawannock Township, said Douglas Thomas, chairman of Penn-Northwest’s sites committee.
A study will be performed to determine the site’s best use, the possible positioning of buildings, what kinds of buildings would be appropriate and how utilities can be extended onto the site, Thomas said Wednesday.
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Planning begins now for future business incubator
Although construction has only just begun to build a technology center in Hermitage’s LindenPointe technical business park, it’s not too soon to plan the mission and function of the business incubator side of the center.
Debra Steiner, executive director of the Gannon Small Business Development Center, Erie, told Penn-Northwest Development Corp.’s board Wednesday that incubators function much like parents do with children.
“You need someone who will make day-in and day-out contact with the tenants,” she said.
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Company files patent suit over truck fender design
Jones Performance Products Inc. of West Middlesex has filed a federal design patent infringement suit against a competitor over a truck fender.
Jones, of 1 Jones Way, said it received a patent for an “ornamental arc design” fender for installation of some models of big rigs in 2007, and sells it to customers and distributors.
Bad Ass Parts of Louisville, Ky., ripped off the design and has been selling its own version, according to the lawsuit filed last month in U.S. District Court, Pittsburgh. -
Rep says tech training key
Historically, American manufacturers have paved the way in technological and scientific advances.
But over the years foreign producers have eaten away at what used to be a distinct American advantage. U.S. Rep. Kathy Dahlkemper said she wants the government to bankroll scientific advances to help American producers get back on track.
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Aqua plan helps some pay their water bill
Aqua Pennsylvania Inc. is reminding customers that its Helping Hand assistance program is available to low-income families who find it difficult to pay their water bills.
The Helping Hand program offers customers a payment plan to pay down arrears and ensure their water isn’t turned off; an opportunity for customers who make payments on time to earn a monthly credit toward their arrears; and a conservation kit to help customers curb usage and therefore, reduce their bills.
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Local bankers getting steady refinancing business
Local bankers say more people want to refinance their mortgages to save money.
With interest rates hovering in the 4.5 percent range for a 30-year loan, it’s a deal too good to pass up, bankers said.
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‘Heartbeat of Clarion’ to stop
CLARION, Pa. (AP) — There’s a hum here, soft yet ever-present.
The noise is drowned out during the din of the day, but late at night the sound of the Owens-Illinois glass plant reverberates through this town of 6,000 people.
Mayor Andrea Estadt calls it the “heartbeat of Clarion,” an enunciation from a plant that has been a centerpiece of community employment and pride for 105 years.
But when the glass plant closes July 1, Estadt said, it’ll be silent here.
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Court: No benefits to worker who damaged equipment
