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Closings painful for community
POSTED: November 8, 2009
When a longtime company leaves, it's like a death in the family.
Area residents are grieving the loss of two staples to our community: F.L. Smithe Machine Co. and Lee Food Services. Those most closely linked to the companies are feeling the greatest loss.
Lee announced Monday that it will be closing its doors, the latest victim of the tough economic times. The closing will mean the loss of 90 jobs.
While Lee Food Services was a relatively new operating entity, its roots were firmly rooted in Blair County. Lee Food Services was created after the 2006 bankruptcy of W.S. Lee & Sons Inc., which had been started in 1872 by Warren S. Lee. Over the generations, W.S. Lee & Sons became a steady supplier of goods and jobs.
Unfortunately, an effort to become the sole supplier for state agencies in 2005 wound up being a burden instead of the anticipated benefit, and the company had to file for reorganization under federal bankruptcy laws. It emerged from that process, but it could not overcome the drop in sales resulting from the recession.
Now the liquidation process for Lee will begin, officials say.
Not far away, Blair County is losing much of another long-term institution: the F.L. Smithe Machine Co. It, too, has suffered as a result of the economic downturn.
The manufacturer of machines to make envelopes recently was sold to a Wisconsin company, and manufacturing operations are being relocated there. When the sale was announced in September, about 65 union workers were employed at the Duncansville plant, down considerably from the roster a few years ago when the company was going through better times.
The new owner, Paper Converting Machine Co., said it will continue to have presence locally with people involved in sales, customer service, technical support and engineering. We're glad for those positions, but it's still hard to see manufacturing jobs move away.
Undoubtedly, some will try to pinpoint someone to blame for these losses - deserved or not.
The reality for these companies and others that have left is there are a multitude of factors from the economy to competition and more - usually outside the control of local individuals - that contribute to the businesses' ill health.
And as much as management and area business leaders would like, they don't always have the power to save each one.
The closures will be especially hard on the employees who relied on these companies for a paycheck. It's tough to lose a job, and it's even more difficult when so many businesses aren't looking to expand.
As a community, we will have to lend these people - and others like them who have lost jobs - a helping hand in the months ahead.
We hope that eventually, local leaders will find new companies to open operations here. But no one should think that's an easy task.
In the meantime, we will have to grieve our losses and move on. Losing a key part of the family is never easy, but we must keep going and hoping for better days ahead.
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View Comments: | 1-22 | Post a comment
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CharlieVarrick
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11-16-09 9:45 AM
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If you’ve ever wondered why some smaller businesses fail its because they’re run by incompetent morons who lack knowledge of finance, marketing, consumer behavior or sometimes just plain common sense. The most important thing any company could or should be doing now to prepare for the post-recession environment is to look at all of the fundamentals and reexamine what changes in the theory of business might mean for their core competencies, for their ability to meet the new consumer demand. Why did F.L. Smithe sell out? Was it because they couldn't compete or was it because its leaders weren't competent enough to run a well oiled machine. This excuse of an economic turndown sickens me. If this were the case then why aren't many more businesses closing? I see the problem as over taxation, unqualified people at the top and the governments inability to make the business climate competitive for American companies vs. overseas ones. Over regulation and unnecessary and burdensome taxation.
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CharlieVarrick
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11-16-09 9:38 AM
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In the case of Lee, getting your company's name out there is a completely different animal than actually delivering the goods. Honestly, a business is really running two focuses so to speak. The 1st is its marketing business & the second providing a service or product. What you may not get is that if you don't do the first, you won't have success at the second. Was Lee attracting new business? Without that a business can't grow. What did Lee fail to do that contributed to their closing? Only its top Managers could answer that. My guess is they got away from what made them successful when Mr. Lee was alive and running the company. Taking on a State contract w/out experienced people in command ultimately may have led to their downfall. State business is a low margin business and it costs plenty to run half empty trucks back and forth from your HQ. Never mind you most likely had no street business at some of those locations to make it somewhat profitable. Concentrate on your core.
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locall
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11-16-09 6:44 AM
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Editor, You missed the All State office that is closing. It has provided well over minimum wage jobs for over 20 years.
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mocus1
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11-12-09 11:31 PM
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hey Bridgejumper, just think, during the Bush administration, those businesses were open and providing jobs for local people and tax revenue for the state of PA. And your left wing clown buddies said "it was the worst economy in 50 years". Now, Obummer is in charge, the businesses are closing, and you're up Jit Creek without a paddle. Unemployment was 5% under Bush, and is currently 10.2% under Obummer. You have everything upside down and ash backwards Bridgejumper, as every liberal does.
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mocus1
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11-12-09 11:09 PM
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Not at all Ridgerunner, we're simply pointing out which political philosophy destroys jobs by attacking the job makers, business owners. That being your leftist radical Democrat socialist Marxist party, which has business in it's gunsites all the time. It's embarassing isn't it Ridgerunner? Being correctly held responsible for destroying jobs with your virulent anti-business policies? Then you lamely try to sympathize with employees who lose their jobs, after you and your side of the aisle destroyed their jobs in the first place. Their jobs have been exported elsewhere, because businesses are tired of putting up with your oppressive anti-business policies. Thanks Demonscraps.
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RidgeRunner
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11-11-09 11:12 AM
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As usual the right wing radicals are missing out on the opportunity to show a little class and respect for people who've just lost their jobs.
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mocus1
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11-11-09 12:26 AM
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Pollyanna is a good name for this rube. The GOP supports business polly. Your party, the socialist Demonrat Party, rejoices when a business closes. After all, according to you, businesses, especially manufacturing, are run by rapacious profiteers who put profits over people. They also pollute the environment and cause global warming according to you, so this should be a cause for celebration on your part. The suggestion that your side of the aisle supports the private sector is truly hilarious. You've done your level best to destroy virtually every industry in this country through excessive taxation, litigation and regulation. Now a corporation is leaving town and you're crying crocodile tears. It's your political philosophy that has engineered the death knell of business here. But don't worry, Obummer will step in and save you with stimulus money he's borrowing from your grandchildren. You dunces couldn't run a hot dog stand. It's the soup line ahead for you.
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pollyanna
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11-10-09 7:52 AM
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You keep supporting the GOP line and we will soon be a ghost town
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pollyanna
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11-10-09 7:49 AM
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You keep supporting the GOP line You willsoon have a ghost town
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mocus1
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11-09-09 10:08 PM
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Hey wombat, did you say, "most of the minimum wage people in this town can't afford health insurance'? Interesting. Well, then I guess they won't be able to afford the $8000 premiums required under Obamacare either. And did you tell them they'll be fined or go to jail if they don't buy into it? Nah, you don't want any pesky debate. You just want goosesteppers to jump on your Marxist bandwagon and grab some freebies so they'll vote Demonscrap until heck freezes over. We know how you people with the IQ's of wombats think.
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mocus1
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11-09-09 10:05 PM
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Yeah, we need to "get off the healthcare debate" Wombatbrains, we should just let you ram your Communist healthcare system through with no debate and no vote. Maybe you should go back to Australia wombat, so a dingo can outwit you in a game of tic tac toe. Another Communist telling us to "drop the debate". Thanks Stalin, but we have a free country where leftists yerkoffs like you don't get to ram legislation thru without debate.
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mocus1
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11-09-09 10:01 PM
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What? Tough times? Why, for the last week, the media has been regaling us with gushing stories about the economy growing 3.5% last quarter thanks to the Obama stimulus. Of course, everybody except the Demonscrap Kool Aid drinkers know that's a crock of horse manure, designed to make you think this moron knows what he's doing. Oh, yes, "it's a jobless recovery", right liberals? Nice try. I guess that will lead to "cashless paychecks" too, right? What needs to be done is cut taxes, reduce government spending by about 75% and get the government and trial lawyers out of business matters. Will any of those happen? Nope. Only tax increases and more government are what you get from this bunch. Soon there will be tumbleweeds rolling down your streets. PA is a nice solid blue state. And your economy is turning blue and has stopped breathing. How's that "hope and change" working out for ya? Anybody still there? Hmm, I guess it's already a ghost town
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wombat
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11-09-09 3:54 PM
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to continue, All I have heard in this town since last November is the Democrats, Nancy Pilosi, Tea party and lately health care reform. Most of the minimum wage people in this town don't have heath insurance to begin with and can't afford the premimums, but we cotinue to build more retail with empty store fronts in the malls. Too much goes into fighting over Pilosi and heath care in these blogs, editorials and on talk radio, very little goes into exposing what is wrong with this community. People need to get their priorities straight, quit fighting over politics and put the heat on our elected officals to DO THEIR JOB or face being voted out. They know by keeping people focused on one item it gets them off the hook for everthing else. In closing remember there is more than retirees in this town and don't form opinions because the tea party member or a talk radio moderator told you it was right.
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wombat
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11-09-09 3:29 PM
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I like the people who notice we have invisible politicans, and our area is full of them. Shuster worries about the elderly and espically the wealthy ones (gifts to the arts foundation). Geist shows his face around his election year and then disapears once re-elected. They work on the fact that people go to their offices for problems and I give 100% credit to the STAFF for solving their needs not Shuster or Geist. We have had hard times in Altoona long before this last recession and I feel the blame lies solely with the lack of uncaring elected officals. Listen to a Shuster news confrence and do you notice all you hear is "this will affect the elderly" what about young people? we need good paying jobs and until people get it through their heads to vote out ALL incumbnents the sucking sound of money leaving this area will never stop. People need to stop listening to local Republican talk radio, get off the Health care debate roller coaster and concentrate on voting non incumbn
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theaterlover
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11-09-09 9:50 AM
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Even the "tour de Toona" went bye, bye.
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theadvocate
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11-08-09 12:23 PM
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Very stupid comments Charlie. Blame, Blame Blame, how do you live with yourself?
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NeverSatisfied
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11-08-09 10:57 AM
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From MSN - "House Speaker Nancy Pelosi, who earlier likened the bill to passage of the government's Social Security pension program in 1935 and Medicare health insurance for the elderly 30 years later"...Uhhh... aren't these programs nearly bankrupt and otherwise failures and Dooshbagius Maximus Pelosi beats her chest over these? You're kidding me, right.. (I know its misspelled)
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CharlieVarrick
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11-08-09 10:38 AM
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That's right put your faith in a guy like obama who doesn't care about small business. He cares about unions but not every worker in a small business is represented by a union. If it were up to me I'd slash business taxes big time with the stipulation you have to hire workers to get the benefit of lower taxes. Stop farming jobs overseas. The only people benefiting off of this are the Bernie Madoff types. Wake up Americans. You have to start electing pro-business candidates and less lawyers. Have you noticed the more lawyers you put into office the less things get done. Keep lawyers out of elective office. Let them practice their law. Start electing business people, nurses, teachers, accountants to elective office and not lawyers. Cut business taxes not personal taxes. Term limits would be great but honestly the democratic party wouldn't like that since they're the majority party. I blame them 60-40 over Repubs. Both parties are bad, dems worse.
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CharlieVarrick
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11-08-09 10:33 AM
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It's part of NAFTA. Remember when Clinton said NAFTA would increase jobs? Well it may have down South but not up in the Northeast. It boils down to all of our congressional leaders of both parties sitting on the flats of their azzes. Term limits would solve a lot of America's problems. Could you imagine Nancy Pelosi or Harry Reid or Shuster being relegated to term limits? What a noble idea. Bring in new blood. When a pro-football team begins losing what do they do? They fire the coaching staff not the players. Why isn't the messiah obama creating those green jobs he promised? His primary aim is to destroy the health care system in his first and only term. He doesn't care about workers. He knows if he gets socialized medicine, he's done his job. Whatever happened to enterprise zones? Whatever happened to cutting business taxes so that small businesses, the backbone of the country can hire more people? That's right put your faith in a guy like obama.
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DRILLMAMMA
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11-08-09 8:22 AM
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My point exactly. More minimum wage jobs. SKF was a good paying job for people. Your right leprechaun, another plant could have moved in.
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Leprechaun
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11-08-09 7:07 AM
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Where are our representatives in all of this? The likes of Geist and Shuster stand idly by and don't even make an attempt to keep these businesses in operation, nor do they make any appeals to bring new industries into our area. I thought it was an absolute disgrace to allow the SKF plant to be razed, the ground sold to a local developer in order to build yet another grocery store. Pretty hard to buy groceries when one doesn't have a job!! The SKF plant could have been retooled and another industry could have been been wooed to come here, but no, Billy Boy gets fatter and happier and wealthier and Geist, "your man in Harrisburg" is invisible until an election year or the "Tour de 'Toona." When will the voters of this area ever learn and turn these leeches out of office? We are slowly bleeding to death economically here and yet these elected Bozo's do NOTHING!! How about writing an editorial about their lack of effectiveness on our part?
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DRILLMAMMA
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11-08-09 6:33 AM
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Little by little, one by one. We are turning into a ghost town. The only jobs are minimum wage, retail and fast food. There is no pliable future here for anyone. If something does not happen in the near future, the crime rate is just going to go up. People need money to survive and they can't pay their bills on minimum wage. Rent for a decent place to live would take your entire paycheck on minimum wage.
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