Other Companies Being Hurt by General Motors Cuts
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Friday, June 5, 2009
Wednesday, June 3, 2009
Lost auto jobs cause shrinkage elsewhere, businessmen tell Dave Camp
Auto Suppliers Feel the Pinch
A Company that Makes Safety Glasses Reflects Detroit Three Woes
by Barrie Barber The Saginaw News
Friday May 29, 2009, 1:22 PM
Friday May 29, 2009, 1:22 PM
Hi-Tech Optical Inc. in Saginaw Township had 50 employees in 2003.
But because of disappearing jobs in the auto industry, the optical maker's workforce has shrunk to 18, said President Thomas M. Ryan.
The reason: Fewer auto workers greatly reduced demand for the safety glasses that Hi-Tech Optical grinds out.
"There's losses that trickle all the way down the supply chain," he said. "It's more far-reaching than people realize."
The company's story was one of about a half-dozen that U.S. Rep. Dave Camp heard when he met with a group of small business owners today as General Motors Corp. appears headed for bankruptcy court by a White House-imposed Monday deadline.
Camp, a Midland Republican who toured the lens grinding facility at 3139 Christy Way, listened to pleas to find ways to loosen the pursue strings for financing to small business owners struggling in a sea of uncertainty and the hope for more money to boost Michigan's alternative energy industry.
The ranking Republican on the House Ways and Means Committee, Camp said he would approach the U.S. Treasury Department to find ways to get financing for businesses.
He also said the federal government should let people who know the industry run it. He has called the Monday make-or-break date an "artificial deadline."
"I don't think the automakers should have been pushed into bankruptcy, but they are and we have to deal with the reality of the situation," Camp said.
He opposes "cap and trade" emissions legislation on grounds it could further devastate Michigan industries while China and India are exempt from the same pollution standards. He also called for greater use of "clean coal" power plants, natural gas and nuclear energy in addition to renewable sources to build the economy.
Auto industry woes have heaped pain on suppliers, businessman told Camp. At Hi-Tech, for example, auto-related accounts brought in $906,353 in 2006. Last year, that plummeted to $284,264.
"A few years ago, Delphi was one of our major accounts, and now it's just a small part of our business," Ryan said. "We can't put glasses on robots and we can't put glasses on nonexistent people."
The company has attempted to diversify into other states, he said.
Wright-K Technology Inc. has faced a major decline in auto-related business over the last decade or so, said Chairman John P. Sivey. The custom machinery manufacturer at 2025 E. Genesee in Saginaw once had $10 million in sales to Delphi.
"We don't do $50,000 today," he said, also emphasizing the need for financing. "There's nothing available to get. You can't get blood from a rock, and you're looking at the rock right here."
But because of disappearing jobs in the auto industry, the optical maker's workforce has shrunk to 18, said President Thomas M. Ryan.
The reason: Fewer auto workers greatly reduced demand for the safety glasses that Hi-Tech Optical grinds out.
"There's losses that trickle all the way down the supply chain," he said. "It's more far-reaching than people realize."
The company's story was one of about a half-dozen that U.S. Rep. Dave Camp heard when he met with a group of small business owners today as General Motors Corp. appears headed for bankruptcy court by a White House-imposed Monday deadline.
Camp, a Midland Republican who toured the lens grinding facility at 3139 Christy Way, listened to pleas to find ways to loosen the pursue strings for financing to small business owners struggling in a sea of uncertainty and the hope for more money to boost Michigan's alternative energy industry.
The ranking Republican on the House Ways and Means Committee, Camp said he would approach the U.S. Treasury Department to find ways to get financing for businesses.
He also said the federal government should let people who know the industry run it. He has called the Monday make-or-break date an "artificial deadline."
"I don't think the automakers should have been pushed into bankruptcy, but they are and we have to deal with the reality of the situation," Camp said.
He opposes "cap and trade" emissions legislation on grounds it could further devastate Michigan industries while China and India are exempt from the same pollution standards. He also called for greater use of "clean coal" power plants, natural gas and nuclear energy in addition to renewable sources to build the economy.
Auto industry woes have heaped pain on suppliers, businessman told Camp. At Hi-Tech, for example, auto-related accounts brought in $906,353 in 2006. Last year, that plummeted to $284,264.
"A few years ago, Delphi was one of our major accounts, and now it's just a small part of our business," Ryan said. "We can't put glasses on robots and we can't put glasses on nonexistent people."
The company has attempted to diversify into other states, he said.
Wright-K Technology Inc. has faced a major decline in auto-related business over the last decade or so, said Chairman John P. Sivey. The custom machinery manufacturer at 2025 E. Genesee in Saginaw once had $10 million in sales to Delphi.
"We don't do $50,000 today," he said, also emphasizing the need for financing. "There's nothing available to get. You can't get blood from a rock, and you're looking at the rock right here."
Congressman Dave Camp tours auto suppliers
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By Dave Kinchen Friday, May 29, 2009 at 6:54 p.m.
Driving down Bay Road in Saginaw Township, you might not think one of the businesses you see there would be a parts supplier to General Motors and Delphi. Hi-Tech Optical is a smaller operation with a staff of about 50 people, but with a big contribution to the auto industry.
It produces prescription safety glasses for auto plant workers. This was also the site of Friday’s visit by US Rep. Dave Camp (R-Midland). Camp was on tour of Mid-Michigan businesses connected to the auto industry and heard the story of this company, which has developed fears over the future of their business in light of the current automotive restructuring, bankruptcy of Chrysler, a possible fate for General Motors as well.
At one point, Hi-Tech Optical made safety glasses for 40 Delphi plants. Owner Tom Ryan said nowadays it’s a different story.
“We were able to save Delphi over a million and a half dollars in their prescription eye care program. We thought we were doing everything good and beneficial for Delphi. All of the sudden, in a year our 40 plants dwindled from 40 to 35; down to 30. Today we are doing about 8 plants for Delphi,” Ryan said.
Congressman Camp said his tour of the facility was revealing.
“It’s impressive to see some of the quality work being done but really how something like safety glasses you might not think as related to the auto industry really is and how interconnected manufacturing is in this state,” Camp said.
“It’s impressive to see some of the quality work being done but really how something like safety glasses you might not think as related to the auto industry really is and how interconnected manufacturing is in this state,” Camp said.
It is that interconnectedness that is at risk with Chrysler in bankruptcy and General Motors on the brink. While touring Hi-Tech Optical, Camp talked with Ryan and other business leaders about the risks of a GM bankruptcy and the importance of restoring the Big Three to viability.
“I think certainty is very important,” Camp said. “As we look ahead, a long bankruptcy just creates more uncertainty for both consumers as well as suppliers. They can’t really wait so I think that it’s very important that if they go in, that it’s done as quickly as possible.”
Camp also met with representatives from the Saginaw County Chamber of Commerce and the wind turbine industry.
“I think certainty is very important,” Camp said. “As we look ahead, a long bankruptcy just creates more uncertainty for both consumers as well as suppliers. They can’t really wait so I think that it’s very important that if they go in, that it’s done as quickly as possible.”
Camp also met with representatives from the Saginaw County Chamber of Commerce and the wind turbine industry.
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