Bankrupt Powermate's workers in Kearney in great demand
What recession?
Bankrupt power equipment manufacturer Powermate Corp. plans to close its plant in Kearney today.
But in another sign of the state’s shortage of skilled labor, there is plenty of demand for the 200 people losing their jobs.
“Yeah, that is not welcome news at all, but it’s amazing the other employers in town and the region can’t get to the employees fast enough,” said Jonathan Krebs, executive director of the Buffalo County Economic Development Council. “Workforce Development (the state government’s employment agency) is being inundated by calls from other employers. In fact, it is so strong, Workforce Development has asked us to put together a single location, a job fair, to give employers a chance.”
The company, which has plants in Kearney and in Springfield, Minn., manufacturers portable generators, air compressors and pressure washers.
Powermate apparently is not a harbinger of what’s supposed to happen to the economy, as national news is dominated by oddsmaking on recession.
“Chief Agri/Industrial has a backlog of $27 million in orders,” Krebs said. “I know they’re looking.
“In the meantime, there are others trying to buy Powermate and continue to produce the product. power generators. Others are interested in the plant as potential expansion for their compaies,” Krebs said.
“So nobody is allowing the tears to drop into their beer, they’re droopping the beer and going out the door.”
Powermate had a a number of layoffs since 2000, according to Krebs.
“Who was left was the cream of the crop, people who’d worked there 10 or 20 years,” he said. “That’s part of reason employers are tyring to get hold of these people, they’re highly skilled.”
Stan Zimbelman, manager of the Workforce Development office in Kearney, confirmed the heavy demand for Powermate employees.
“It’s an excellent situation for the people losing their jobs, they’re in demand,” said Zimbelman, who was working Wednesday on putting together the job fair.
“We want to do this for local employers and out of town employers, give everybody an equeial shot,” he said.
He wouldn’t name any of the employers, he said, for fear of leaving someone out.
“I have a list, we’re going to be talking to at least 15 or 20 employers who are going to want to be there,” Zimbelman said. “So far this morning I have six out-of-town ones that have called me today.”
“This is skilled labor,” Zimbelman said of the employees. These are the core people, they’ve been showing up every day for 15 or 20 years.”
Kearney’s unemployment rate hovers around 2.5 to 3 percent, one of thelowest in the state, Zimbelman said,
so it’s been a shopper’s market anyway.”
Powermate said in its U.S. bankruptcy court filing that it owes between $50 million and $100 million to creditors, most of which are suppliers. The company is seeking Chapter 11 protection.
The company had not issued a statement and officials could not be rached for comment.
A recording greeted callers to Powermate’s customer service number Tuesday: “You have reached us during normal business hours. Due to circumstances beyond our control, we do not have representatives available to answer the phone.”
The Wilmington, Del.-based attorney listed on Powermate’s bankruptcy filing, Michael Nestor, did not immediately respond to a message left late Tuesday.
Powermate owes more than $4 million to Chicago-based engine maker Robin America Inc., which is the largest unsecured debtor Powermate owes.
Sun Capital Partners bought Powermate, then called Coleman Powermate, from American Household in August 2004.
In 2006, Sun Capital announced it was trying to sell Powermate, but that deal fell through.
Journal Star reporter Richard Piersol and the Associated Press contributed to this report.
———
On the Net:
Powermate Corp.: http://www.powermate.com
Bankrupt power equipment manufacturer Powermate Corp. plans to close its plant in Kearney today.
But in another sign of the state’s shortage of skilled labor, there is plenty of demand for the 200 people losing their jobs.
“Yeah, that is not welcome news at all, but it’s amazing the other employers in town and the region can’t get to the employees fast enough,” said Jonathan Krebs, executive director of the Buffalo County Economic Development Council. “Workforce Development (the state government’s employment agency) is being inundated by calls from other employers. In fact, it is so strong, Workforce Development has asked us to put together a single location, a job fair, to give employers a chance.”
The company, which has plants in Kearney and in Springfield, Minn., manufacturers portable generators, air compressors and pressure washers.
Powermate apparently is not a harbinger of what’s supposed to happen to the economy, as national news is dominated by oddsmaking on recession.
“Chief Agri/Industrial has a backlog of $27 million in orders,” Krebs said. “I know they’re looking.
“In the meantime, there are others trying to buy Powermate and continue to produce the product. power generators. Others are interested in the plant as potential expansion for their compaies,” Krebs said.
“So nobody is allowing the tears to drop into their beer, they’re droopping the beer and going out the door.”
Powermate had a a number of layoffs since 2000, according to Krebs.
“Who was left was the cream of the crop, people who’d worked there 10 or 20 years,” he said. “That’s part of reason employers are tyring to get hold of these people, they’re highly skilled.”
Stan Zimbelman, manager of the Workforce Development office in Kearney, confirmed the heavy demand for Powermate employees.
“It’s an excellent situation for the people losing their jobs, they’re in demand,” said Zimbelman, who was working Wednesday on putting together the job fair.
“We want to do this for local employers and out of town employers, give everybody an equeial shot,” he said.
He wouldn’t name any of the employers, he said, for fear of leaving someone out.
“I have a list, we’re going to be talking to at least 15 or 20 employers who are going to want to be there,” Zimbelman said. “So far this morning I have six out-of-town ones that have called me today.”
“This is skilled labor,” Zimbelman said of the employees. These are the core people, they’ve been showing up every day for 15 or 20 years.”
Kearney’s unemployment rate hovers around 2.5 to 3 percent, one of thelowest in the state, Zimbelman said,
so it’s been a shopper’s market anyway.”
Powermate said in its U.S. bankruptcy court filing that it owes between $50 million and $100 million to creditors, most of which are suppliers. The company is seeking Chapter 11 protection.
The company had not issued a statement and officials could not be rached for comment.
A recording greeted callers to Powermate’s customer service number Tuesday: “You have reached us during normal business hours. Due to circumstances beyond our control, we do not have representatives available to answer the phone.”
The Wilmington, Del.-based attorney listed on Powermate’s bankruptcy filing, Michael Nestor, did not immediately respond to a message left late Tuesday.
Powermate owes more than $4 million to Chicago-based engine maker Robin America Inc., which is the largest unsecured debtor Powermate owes.
Sun Capital Partners bought Powermate, then called Coleman Powermate, from American Household in August 2004.
In 2006, Sun Capital announced it was trying to sell Powermate, but that deal fell through.
Journal Star reporter Richard Piersol and the Associated Press contributed to this report.
———
On the Net:
Powermate Corp.: http://www.powermate.com
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