Announcements came yesterday, June 4, that IBM has laid off 988 workers at its Essex Junction, Vt., plant, after having laid off a handful of workers last week in its Global Services division. This devastating news may just be the beginning of more troubles in Vermont’s ailing manufacturing industry, which has been hit hard by competition from neighboring states, as well as an overall slowdown in the sector. The layoffs, and a recent doomsday prediction by the state’s official economist, Jeffrey Carr, have state officials worrying about the Vermont’s viability over the longer term, and if it may be one of the states most hard-hit by this recession.
“We’re doing what we can to offer incentives to businesses,†said state Sen. Dick Sears (D-Benn.), noting a recent announcement by U.S. Sen. Patrick Leahy (D-Vt.) that a $10 million government contract was awarded specifically to the Essex Junction plant. Through the DARPA (Defense Research Projects Agency), a branch of the Pentagon, the contract was given to JSAL Nanolithograhy of South Burlington, Vt., with IBM as subcontractor. The money — $3 million this year and $7 million next year — will be used for a research and development on “next-generation computer chips,†according to a release from Leahy’s office.
Still, a $10 million contract is nowhere near the $1 billion being offered to IBM by the state of New York, part of a $3 billion capital expansion project at its East Fishkill, N.Y. plant, which observers say may eventually lure the company away from Essex Junction altogether. Rumors have been surfacing that the company may be sold altogether, rumors which company officials have denied.
State Rep. Bernie Sanders (I-Vt.) issued a statement following the news yesterday. "Today is a very painful and difficult day for our many friends and neighbors who work at IBM, and my heart goes out to those who have lost their jobs and to their families. Needless to say, these job losses will have a negative impact on our entire community. These job cuts highlight the need for public officials in Vermont and across the country to come together to develop an economic development strategy that allows these talented individuals to create new enterprises in our state. Small business is and has always been the backbone of our economy and it is time that our economic polices reflect that reality."
Being a small state, Vermont has little leverage to offer large-scale incentives to businesses such as IBM, which before the layoffs employed nearly 8,000 workers in a state with a population of little more than 600,000. But with the economy becoming more and more competitive in manufacturing and high-technology, businesses are almost expecting large contributions from state government as they plan for the future.
Other closings have hampered the state in the past two years. Economist Carr suggests that since January of 2001, 6,100 private sector jobs have been lost in Vermont — 4,700 of those in manufacturing. In January, IBM laid off an additional 475 workers. Locally, the loss of Stanley Tools, which first left the historic Shaftsbury, Vt. branch where it had done business for nearly a century, resulted in over 100 workers without a job. And less than two years later, that company has announced it will move its headquarters offices from Connecticut to the island of Bermuda, a move that will save the company $30 million in U.S. taxes. Mack Molding of Arlington, Vt., was cited too as being very susceptible to downturns in the economy, as most of its business is done on a contract basis.
In addition to Stanley, the Garelick Farms operation on Route 9 in Bennington, recently bought out by the largest milk producer in the nation, will be moving out this summer to consolidate in East Greenbush, N.Y., at an existing, larger facility it plans to expand.
And on a more symbolic note, production facilities at Ben & Jerry’s — which is now owned by multinational corporation Unilever — will be closing in Bellows Falls and Springfield, Vt. The grass-roots ice cream maker epitomized the spirit of Vermont’s locally-owned, locally-run, responsible business practices.
Industry analysts predict that at IBM’s Essex Junction plant, if the global slowdown in the computer industry continues as expected, up to 1,500 employees could be laid off, which would devastate the area south of Burlington. Some argue that Vermont’s lack of a business-friendly climate, and its floundering on construction of a Circumferential Highway to alleviate serious traffic congestion, will drive the entire operation elsewhere.
Yet part of the problem stems from the fact that small states like Vermont, with limited tax bases and a spread out, rural population, will continue to suffer in the future. Unlike a corporation, they cannot merge with a bigger state to centralize services or combine capital. They cannot offer the incentive packages of a New York or New Jersey, because their residents do not earn enough money to begin with. While tough permitting policies and public interest groups may hurt the state’s image as a place for business, ultimately it lacks the bargaining leverage at a time when money talks louder than ever.
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Berkshire County Homes Celebrating Holiday Cheer
By Breanna SteeleiBerkshires Staff
There's holiday cheer throughout the Berkshires this winter.
Many homeowners are showing their holiday spirit by decorating their houses. We asked for submissions so those in the community can check out these fanciful lights and decor when they're out.
We asked the homeowners questions on their decorations and why they like to light up their houses.
In Great Barrington, Matt Pevzner has decorated his house with many lights and even has a Facebook page dedicated to making sure others can see the holiday joy.
Located at 93 Brush Hill Road, there's more than 61,000 lights strewn across the yard decorating trees and reindeer and even a polar bear.
The Pevzner family started decorating in September by testing their hundreds of boxes of lights. He builds all of his own decorations like the star 10-foot star that shines done from 80-feet up, 10 10-foot trees, nine 5-foot trees, and even the sleigh, and more that he also uses a lift to make sure are perfect each year.
"I always decorated but I went big during COVID. I felt that people needed something positive and to bring joy and happiness to everyone," he wrote. "I strive to bring as much joy and happiness as I can during the holidays. I love it when I get a message about how much people enjoy it. I've received cards thanking me how much they enjoyed it and made them smile. That means a lot."
Pevzner starts thinking about next year's display immediately after they take it down after New Year's. He gets his ideas by asking on his Facebook page for people's favorite decorations. The Pevzner family encourages you to take a drive and see their decorations, which are lighted every night from 5 to 10.
In North Adams, the Wilson family decorates their house with fun inflatables and even a big Santa waving to those who pass by.
The Wilsons start decorating before Thanksgiving and started decorating once their daughter was born and have grown their decorations each year as she has grown. They love to decorate as they used to drive around to look at decorations when they were younger and hope to spread the same joy.
"I have always loved driving around looking at Christmas lights and decorations. It's incredible what people can achieve these days with their displays," they wrote.
The Wilsons' invite you to come and look at their display at 432 Church St. that's lit from 4:30 to 10:30 every night, though if it's really windy, the inflatables might not be up as the weather will be too harsh.
In Pittsfield, Travis and Shannon Dozier decorated their house for the first time this Christmas as they recently purchased their home on Faucett Lane. The two started decorating in November, and hope to bring joy to the community.
"If we put a smile on one child's face driving by, then our mission was accomplished," they said.
Many homeowners are showing their holiday spirit by decorating their houses. We asked for submissions so those in the community can check out these fanciful lights and decor when they're out.
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