Thanks in large part to overwhelming support from both local voters and the Oklahoma Legislature, Goodyear has begun the largest single plant modernization effort in the company's history at its Lawton, Okla., tire manufacturing facility.
The $250 million expansion of the plant will result in 100 new hires in the Lawton area. It will also increase the plant's ability to produce higher value-added tires and to utilize Goodyear's new IMPACT tire manufacturing technology.
Cost for the modernization won't be borne solely by the manufacturer. Last March, voters approved a quarter-cent sales tax that is expected to yield nearly $5 million. Then, in May, the Oklahoma Legislature overwhelmingly passed a measure that will provide an additional $36 million. Proceeds from both funds will go toward the plant's expansion.
"We owe a special thanks to the people of Comanche County for expressing their confidence by voting an additional sales tax in support of this modernization," said Sam Riley, director of manufacturing, North American Tires. "And, of course, the record performance levels of our associates at the Lawton plant are really what make the plant such a success,"
Goodyear officials say the modernization and funding efforts began in 2001 when John Loulan, the company's vice president of operations, manufacturing and supply chain, visited Lawton. City leaders approached him at that time to discuss the plant's future. The goal was to position the local facility to retain its position as a Goodyear flagship plant.
Lawton's Goodyear facility has consistently ranked as one of the company's best. In fact, company officials say the Lawton plant is one of its most productive because of the excellent training opportunities provided by CareerTech and other organizations. Oklahoma is the largest tire producing state in the country.
A Depot for Food Distribution
Wal-Mart recently selected Bartlesville as the site for its newest food distribution center. Construction on the 893,900 square foot distribution center, to be located six miles south of Bartlesville, is expected to begin in the spring, with initial hiring of about 400 area residents. More than 90 percent of the jobs created will be full-time positions.
"The Bartlesville food distribution center will provide Wal-Mart the opportunity to better serve the growing number of customers who shop for groceries at our stores in Oklahoma, Kansas, Missouri and Arkansas," said Rollin Ford, senior vice president of logistics for Wal-Mart.
The recent announcement will provide a boost to the area's tax base needed to compensate for sales tax revenues that have declined in the past year. In addition to increased growth in the city's tax base, Bartlesville's infrastructure will benefit from the distribution center in terms of services provided to the new facility.
Wal-Mart Stores, Inc. currently operates 44 discount stores, 36 super centers, seven SAM'S Clubs, 11 Wal-Mart Neighborhood Markets and one distribution center, and employs more than 26,674 associates in Oklahoma.
Natural resources attract new business
Huber Engineered Woods (HEW), a business unit of Charlotte, N.C.,-based J.M. Huber Corp., selected Broken Bow as the site for an oriented strand board facility. The plant is expected to bring in excess of $25 million annually to the local economy, employ about 160 people and create 250 additional jobs. Fueled by an investment of $130 million, the facility will produce more than 600 million square feet of panels annually.
John Bozeman, vice president of business development for HEW, cited several reasons for choosing Oklahoma over Arkansas, Texas and Louisiana.
"We selected Broken Bow because of its sustainable wood supply, great transportation and services infrastructure, market access and a very skilled labor pool," he said.
Broken Bow is rich in the southern yellow pine necessary for making oriented strand board.
HEW, whose products target both construction and industrial markets, plans an early fall groundbreaking for the plant, expected to be fully operational in 2004.
Deborah Lehman is a freelance business writer based in Fanwood, N.J.
FACTS & CONTACTS
State: Oklahoma
DEMOGRAPHY AND ECONOMY
Population: 3.4 million
Capital: Oklahoma City
Three Largest Cities: Oklahoma City, 475,322; Tulsa, 381,579; Norman, 94,193
GSP: $82 billion
Per Capita Income: $22,953
Percentage of Private Manufacturing Labor Force Organized: 13.0%
Right to Work State: No
Unemployment Rate: 4.1% (October '02)
Average Hourly Manufacturing Wage: $13.16
Population 25 and Over With Bachelor's Degree or More: Oklahoma City, 21.6%; Tulsa, 25.8%; Norman, 38.1%
Corporate Income Tax Rate: 6.0%
Primary Industries: Industrial machinery and equipment, fabricated metal products, rubber and miscellaneous plastics products, motor vehicles and equipment, petroleum and coal products, electronics
Targeted Industries: Biotechnology, electronics manufacturing, aviation/aerospace, telecommunications, business services, plastics, motor vehicle parts/accessories
BUSINESS ASSISTANCE
Worker Training Programs: Career & Technology Education Department's Training for Industry Program (TIP)
Enterprise Zones: 211
Foreign Trade Zones: 4; 5 sub-zones; 4 general purpose sites
FOR MORE INFORMATION CONTACT
John Reed, director, business location services, Oklahoma Department of Commerce, P.O.Box 26980, Oklahoma City, OK 73126-0980, (800) 879-6552, fax: (405) 815-5273, Web: www.locateok.com
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