As word spread last week that Belle Plaine’s major employer, Benco Manufacturing, was closing its local plant by December, comments from city officials ran the gamut from resignation to frustration.
City Administrator Bill Daily termed Thursday, the day employees were informed of the move “a dark day.”
Mayor Jim Daily, whose immediate family, including himself, his wife and a daughter, have a total of more than 30 years experience working at the plant, expressed some displeasure with the fact that city officials had been given no notice from the company that this move was coming.
“What we learned, we learned from the street,” Bill Daily said. The mayor added that it was only after contacting a media relations representative from the home office that he was then notified by local plant officials who confirmed the news.
Benco manufactures automotive parts for a variety of clients, both domestic and foreign. With the recent decline in the industry, city officials feared that the local plant might be in jeopardy. But they said that in speaking with local employees, it seemed that the plant was beginning an upswing. In fact, several employees that had been laid off in recent months had been called back.
But company spokesperson Tracy Furerst said corporate officials took a look at vehicular assembly volume in the Midwest and other factors in determining how operations could be consolidated.
Jon Dayton, executive director of the Belle Plaine Community Development Corporation (BPCDC) said it’s really hard to comment at this time until his group can gauge the long-term effect of the closure.
“We’ll just have to dig in and keep working,” he said. “Belle Plaine still has a lot of good things to offer.”
Benco employees were called to a company meeting on Thursday and informed of the pending closing. Tracy Furerst, a corporate spokesperson, said the company would attempt to place as many of the local workers in other Cosma facilities. The company operates several plants in eastern Iowa, including plants in Victor, Montezuma and Williamsburg. But it has long been rumored that those plants, which also make parts for the automotive industry, have had cutbacks in employment and employee hours.
She said 160 employees would be affected. But there were reports that far fewer than that number had actually been working recently. Still, the closure will have a far reaching effect on the local economy, as well as the personal future for many families, some with several family members working at the plant.
The company and the city have had a relationship that has lasted for more than 30 years and has encompassed two buildings. The company originally operated out of a facility along Eighth Street on the west side of the city. In the mid-1990s, thanks to financial help from the city in the form of a tax increment financing district, the larger current plant was constructed just west of the municipal airport.
Just as the future of many employees of the company remains uncertain, so too does the economic future of the city. Bill Daily said the city will have to re-evaluate its future priorities with the possibility of a decrease in future property tax revenues. A major streetscape project was to be funded in large part through city funds that the city council had already approved. The city is also planning to construct a new aquatics center through a combination of public and private financing.
Another major building project in the city will apparently not be affected by this news. Belle Plaine Schools Superintendent Bill Lynch said the funding is in place for the construction of additions to Longfellow Elementary and the high school.
“But I certainly don’t like to see this (the plant closure) happen,” he said.
Brad Cook is a member of the BPCDC board. He has operated Iowa Mold and Engineering in the city and in recent years, he brought a company formerly headquartered in Cedar Rapids, Iowa Metal Products, Inc. to the city.
He said if anyone was looking at Belle Plaine as a potential site for company expansion, he would tell them that this area offers a good, well-trained work force experienced in the manufacturing field. He added that the decision to relocate Iowa Metal Products was not difficult, as the emphasis on industry in Cedar Rapids has been to more specialized fields of food processing, agricultural products and chemical production rather than general manufacturing.
Dayton said that although in this economy it might seem that the outlook for filling the Benco plant with a new company might be dim, he thinks that the condition and age of the building should put it at or near the top of agencies charged with matching investors with potential locations for business.
Mayor Daily said that the economic reality finally caught up with us.
“We’ll just have to get together and work harder,” he said. “There’s no giving up now.”



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