Week of May 13, 2002
LOOKING FOR A PREVIOUS STORY? CHECK THE ARCHIVE.
Outsourced Operation Will Employ 100-Plus
Deere's 1M-Sq.-Ft. SE Distribution Center Heading for Great Smokies Foothills
JEFFERSON COUNTY, Tenn. Deere & Company is heading for the rocky-topped foothills of the Great Smoky Mountains with its 1-million-sq.-ft. (90,000-sq.-m.) Southeast regional distribution center. The 135-year-old manufacturer of farm, industrial, forestry and lawn-care equipment will set up its distribution operation in East Tennessee in Jefferson County.
Completed Before Year's End
"We are very pleased that Ryan Companies US, Inc. and their client, Deere & Company, have selected Jefferson County as the location for this project," Jefferson County Executive Gary Holiway said in announcing the project.
"We selected Jefferson County because of the quality of the location and the can-do attitude that exists, and because of the proactive and business-friendly approach," said Jeff Smith, president of Ryan's Midwest Division. "We never could have gotten to this point as quickly or effectively without Jefferson County's help and guidance through this process."
Construction on the 1-million-sq.-ft. design-build project will travel a very fast track, with Ryan officials projecting a December 2002 completion date. The center will include a 500,000 sq.-ft. (45,000-sq.-m.) storage/distribution structure, plus an outdoor storage area of the same size.
The Jefferson County center will distribute home, lawn and garden equipment throughout the U.S. Southeast. The bulk of that distributed equipment won't have to travel far to reach the new East Tennessee operation. Most of the products handled by the Jefferson County distribution center will be assembled at the Deere plant in Greeneville, Tenn., roughly 43 miles (69 kilometers) away, which was built in 1989.
Area Was Runner-up for Deere"Having such well-known and respected companies invest in Jefferson County is significant," said Holiway. "This will no doubt spur additional development in the area and help meet Jefferson County's goals of adding new companies and more jobs and increasing our tax base."
Plant Now Ticketed for Closing
Jefferson County in 1996 just missed on landing a Deere skid-steer manufacturing plant. The area finished as runner-up on the project, which went to neighboring Loudon County.
Ironically, Deere announced last fall that the 420-employee Loudon County plant will close sometime later this year. The work will be transferred to another Deere plant in Dubuque, Iowa, company officials said.
That closing is part of Deere's current drive to cut costs through consolidation. That drive also spurred the company's March announcement of the shutdown later this year of its 300-employee Phoenix International facility in Springfield, Ill. The Springfield plant's work will be eliminated, outsourced or consolidated with the company's Phoenix International plant in Fargo, N.D., Deere officials said.
"This action is the result of the continued depressed overall economy, as well as the depressed electronics industry, which continues to see consolidations to address the excess capacity within the industry," Daryl Schloz, general manager of the Springfield Phoenix International plant, said in announcing the closing. "We need to adjust our business operations and decrease our overall cost of doing business to stay competitive."
Watch for the Tennessee spotlight section in the September 2002 Site Selection.
Means 125 New Jobs for Tampa
TAMPA, Fla. - When the world economy's slopes grow slippery, jobs gains in some areas are sometimes matched by job losses in other areas.
Move Will Produce $4.5 Million inIn the short term, at least, the relocation will add substantial expenses.
Pre-Tax Cost Savings, Officials Project
As a result of the consolidation, TSI will record a pre-tax charge of some $16 million through the fiscal quarter ending Dec. 31, 2002, company officials said. That charge, they explained, will include outlays for severance, relocation, lease termination and asset write-downs.
Once completed, though, the consolidation will generate annual pre-tax cost savings of approximately $4.5 million, TSI officials reported. The move to Tampa will be fully completed by the end of the first quarter of 2003, TSI projected.
The consolidation will eliminate many of the duplicated functions that the company identified in investigating cost-cutting alternatives, officials explained.
"These steps are designed to better support the needs of our customers, achieve sustained sales and earnings growth and to enhance shareholder value,'' Chairman and CEO William Compton explained.
Story Office Building in Tampa
TSI, however, will build a five-story, 125,000-sq.-ft. (11,250-sq.-m.) office facility in Tampa to accommodate both the administrative consolidation and the need for space for future growth. The company is currently housing some of its office employees in leased space in Woodland Corporate Center.
Located next to the company's production operations, the new office facility will be completed in time for move-in before year's end, company officials projected. The new building will initially house at least 200 employees, Compton said.
The announced consolidation comes shortly after TSI sold off Duck Head Apparel's former headquarters in Winder, Ga. Fort Myers, Fla.-based specialty retailer Chico's FAS paid $7.2 million for the onetime operations base of Duck Head, which last year became a wholly owned TSI subsidiary.
In a related cost-cutting move, TSI in March announced that it had discontinued production at its partially owned factories in Fiji. The shutdowns signal the end of TSI's alliance with Farah Fiji Ltd. The Tampa-based company has since outsourced its South Pacific division manufacturing to a variety of other low-cost producers located around the globe.
TSI, which Sam's Club last year named "Supplier of the Year," has some 11,600 employees.
LAS VEGAS Viva Las Vegas . . . conventions.
Vegas Convention Business Increased in 2001GES, a division of Phoenix-based Viad Corp., has signed a 12-year lease on the build-to-suit.
The signing of one of 2002's biggest leases in the U.S. West attests to Las Vegas' enduring lure for conventions. Despite the economic downturn and post-9/11 travel fears, convention attendees accounted for 4 million of last year's 35 million total visitors to Las Vegas. The 4 million attendees at Las Vegas conventions during 2001 marked a 5.1 percent increase over the previous year's tally.
"Such substantial growth is especially remarkable given the challenges faced by the convention industry during the last quarter of 2001," said Rossi Ralenkotter, vice president of marketing for the Las Vegas Convention and Visitors Authority. "It attests to the strength of Las Vegas' convention sector."
2002 has also been shaping up as a strong year for the city's convention business. In February, for example, the Las Vegas Convention Center hosted eight shows simultaneously during one nine-day period. Collectively, the eight shows occupied more than 1.7 million sq. ft. (153,000 sq. m.) and drew some 70,000 attendees.
PLEASE VISIT OUR SPONSOR CLICK ABOVE
©2002 Conway Data, Inc. All rights reserved. Data is from many sources and is not warranted to be accurate or current.