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2006 FIN – Perspective: Loss of Exemplar and Visteon Hurts City

November 21
00:00 2012

FASTENER HISTORY
2006 FIN – Perspective: Loss of Exemplar and Visteon Hurts City

January 26, 2006 FIN – MEDIA SPOTLIGHT ­ The loss of fastener manufacturer Exemplar and other auto suppliers in recent years has dealt a critical blow to the town of Ypsilanti, MI, USA Today reports. Exemplar, which produced metal fasteners and mechanical assemblies for automotive clients such as Daimler-Chrysler, Ford and General Motors, declared bankruptcy in 2002, laying off nearly 100 workers.
The city is bracing for another blow when auto parts giant Visteon closes later this year, moving nearly 1,000 jobs out of the city, along with $800,000 in annual taxes, according to USA Today.
Like other towns in Michigan that have been stung by a sharp downturn in the auto industry, Ypsilanti faces a $360,000 deficit in 2006 and $1.1 million in 2007. Officials are considering adding a local income tax to make up the difference, though such a move is likely to put more hardship on struggling city residents.
Statewide, Michigan has lost 313,600 jobs, with another 90,000 job cuts anticipated over the next three years.
In the late 1990s, Exemplar was a promising minority-owned manufacturing company. With 110 employees, it was the second-largest taxpayer in Ypsilanti. In 2000, the Ypsilanti Chamber of Commerce named Exemplar CEO Anthony Snoddy the Small Business Person of the Year.
But a rise in global competition prompted GM to stop buying parts from Exemplar, costing it 60% of its business.
Ypsilanti mayor Cheryl Farmer worries that the lack of manufacturing jobs will hurt not only her city’s economy, but America’s as well.
“We’re broke. We’re cut to the bone. There’s no place else to cut that really won’t be felt,” Farmer told USA Today.  ©2006/2012 Fastener Industry News
Editor’s Note: Articles in Media Spotlight are excerpts from publications or broadcasts that show the industry what the public is reading or hearing about fasteners and fastener companies.
For information on permission to reuse or reprint this article please e-mail: FIN@GlobalFastenerNews.com
 

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