Monday, November 30, 2009

NUMMI closure effects on San Joaquin County

I think Mike Locke has the employment impacts of the NUMMI plant closure on San Joaquin County about right in this Stockton Record article. We built in an additional 1% increase (3,000 more unemployed) in the County unemployment rate by Spring 2010 into our September forecast and will do the same in our December update. Locke's estimates are roughly the same.

Although NUMMI plant is in the East Bay, it has a proportionally larger impact on the Northern San Joaquin Valley than the Bay Area. The recession does not end in the northern San Joaquin Valley until NUMMI closes in March 2010.

Michael Locke, president and chief executive of the San Joaquin Partnership, said up to 3,200 county residents - about 1 percent of the civilian work force - could lose their jobs with NUMMI's closure.
"We have 1,200 employees employed in nine manufacturing plants here in San Joaquin who are component manufacturers," he said Wednesday. "At this stage, we believe all of them will close with the closure of NUMMI.
Also, there are more than 800 direct NUMMI employees living in the county, including an estimated 300 in Tracy, 200 in Stockton and 200 in Manteca.
Finally, Locke said there are another 1,200 area residents employed by other vendors and service providers, which as Valley Mountain Express, a Manteca trucking company that moves auto parts from various NUMMI suppliers to the Fremont assembly plant.
"As that business is eliminated, they're significantly impacted," he said.

1 comment:

  1. It saddens me to know how many will loose there job when Nummi closes, the ripple effect is going to be big, having worked for one of the trucking firms that supply parts to Toyota this will hit Modesto, Merced as well as Stockton, manteca and Tracy. Poor Mountain Valley Express? If you only knew how greedy there managment has gotten in the past 5 years. One would have no sympathey for them. One of there employes was fried after there cheap heath insurance would not help the employee with treatment, this poor driver refused to give up, i saw him once, the pain he went thew just to work pissed me off. Sadly I was told he was fired for scratching a trailer in Nummi. Since he was fired he has not been able to find a job one of his former co-worker told me.
    Merry Christmas you all, dont spend your money, save it.