When a hurricane blows across the Gulf of Mexico, homeowners on Faraon Street don’t have to board up their windows.
But Northwest Missouri quite often gets soaked with wind and rain associated with the storms.
A financial typhoon has barreled down Wall Street. While we don’t see investment bankers panhandling on St. Joseph Avenue, the storm’s wake will certainly be felt here.
Some industries are prone to storm damage, while others are more protected. Northwest Missouri has its share of both.
Evidence of problems surfaced in Elwood, Kan., last week when Snorkel International revealed it would shut down production for a week in October. The construction industry is volatile in the best of times. Snorkel’s ownership is based in Britain and St. Joseph has a long history of frustration with out-of-town owners. One hundred workers were laid off last month and the community hopes management is proven right when it said the one-week shutdown will solve problems.
In the South Side, there’s concern about Prime Tanning. Ever since the leather processor announced plans in April to merge with a Chinese company, locals have been talking about changes at the plant. Those discussions have cranked up in volume in recent weeks. Company officials, however, have not commented on any changes.
The auto industry has taken a big hit from both fuel prices and a bummed-out economy. That’s raised questions about associated businesses, including Johnson Controls Battery Division, which employs hundreds of people at its St. Joseph factory.
For the most part, the agriculture industry is considered strong. Since agriculture is the largest employer and revenue generator in Northwest Missouri and Northeast Kansas, that’s good news.
Pockets of concern still exist, however. Ethanol and biofuel subsidies exist at the whim of Congress and, ultimately, taxpayers. Footing the bill on the financial bailout may cause other programs to get the axe. Lower gas prices and high grain prices could also affect the profitability level for alternative fuels.
Higher grain prices are affecting other industries. MGP Ingredients in Atchison, Kan., reported a $9 million loss for the fourth quarter, in part because of grain. Workers went on strike at the plant in September, contributing to a feeling of unease.
There’s also unease among food stores. Look for a shake up among St. Joseph grocery stores. Any time the price of everything in the store is knocked off, it’s an indicator of change.
It’s no hurricane, but some raindrops are falling. This could very well be the rainy day we’ve been warned about.
