1,550 Jobs Lost Since 2002

Discussion in 'General Industry Discussions' started by patron, Jan 31, 2008.

  1. patron

    patron LawnSite Member
    Messages: 180

    Little Tikes from 1970 to today

    January 30, 2008
    Little Tikes was founded by Thomas G. Murdough in 1970 to make large plastic outdoor play equipment, toy boxes, and children's furniture in an old barn in Aurora using rotational molding. By the end of the 1970s, Little Tikes sales had grown to $15 million.

    Its most famous product, the red and yellow Cozy Coupe ride-in car, was introduced in 1979, and Little Tikes sold 6 million by 1999. Little Tikes total sales totaled $23 million in 1982 and rose to $42.9 million in 1983.

    In October 1983, Murdough broke ground on Barlow Road for a $7.5 million plant in Hudson Township. A 250,000 square foot facility was built on 42 acres of land for Little Tike headquarters and manufacturing, and the operations at Macedonia and Twinsburg were moved to Hudson.

    Little Tikes sold 50 items including large riding toys, sandboxes, slides, wagons, building blocks, juvenile furniture and housekeeping products.

    The Hudson facility employed 380 workers in 1983 but increased to 500 employees by 1985.

    Rubbermaid owned

    Murdough sold Little Tikes to Rubbermaid in 1984 for $50 million but remained for five years in a leadership role. Sales continued to increase with $100 million in 1987, $270 million in 1989 and $400 million in 1995.

    Murdough resigned in 1989 and began a new company, Step2, in 1991 in Streetsboro.

    In 1999 Newell Inc. purchased Rubbermaid for $5.6 billion. By 2002, Little Tikes had 2,000 employees and sales of $2.59 billion.

    Little Tikes facility had three office buildings for headquarters, two manufacturing buildings and two storage facilities for a total of 1.3 million square feet on 122 acres in 2002, but its workforce had been cut by more than half by 2005.

    In 2005, the company's 900 workers contributed approximately $500,000 to Hudson in income tax collection with sales of $250 million reported in 2005.

    During 2005, the workforce was cut from 893 to 665 employees. In March of 2006, Little Tikes cut its workforce by 160 employees.

    MGA Entertainment
    takes over

    When California-based MGA Entertainment Inc. purchased Little Tikes in November 2006 from Newell Rubbermaid, it employed 500 workers.

    Roberts said there was a meeting in 2006 shortly after Little Tikes was purchased and Isaac Larian, founder and chief executive officer of MGA Entertainment, indicated the company was staying in Hudson.

    Larian told the Hub-Times in September 2006 the manufacturing facility will stay in Hudson. Larian said he anticipated little change in staffing at the Barlow Road plant, though he added it was possible that more factory workers would be hired in the future.

    In June of 2007, after 50 employees were laid off from Little Tikes, Larian said the city and state had offered minimal concessions for Little Tikes to remain in Hudson long term.

    However, he told the Hub-Times the company would not make any changes for at least two years in a June 2007 interview.

    Hudson Communications Manager Jody Roberts said the company was offered more than $3 million from the city and state to maintain its operations in Hudson, but Larian said the offer amounted to just $80,000 a year, and only if the company hired additional workers.

    According to Roberts, the city and state have offered an "aggressive" incentive package and sees tremendous potentials in MGA Entertainment. She said Hudson "would love to be a partner in their success."

    However, Roberts has said MGA Entertainment has threatened to move its Little Tikes operations to Los Angeles or Mexico, though Larian has said he hoped to maintain the facility in Ohio.

    Compiled by Laura Freeman

    ED'S LAWNCARE LawnSite Senior Member
    Messages: 361

    I don't know what this has to do with General green industry?????

    But on a side note as time passes automation takes over and fewer workers are needed in a factory. 1 Robot can take the place of 5 workers. And they don't call in sick.
  3. patron

    patron LawnSite Member
    Messages: 180

    I wanted to show that jobs leave and factories close and it has no connection to Mexicans doing the work for less money.

    It has to do with the green industry because the big shots at this company live in my town and my company and others like us cut the lawns, mulches the bed , and plows the snow for them.

    Some times simple economics ain't so simple!
  4. IA_James

    IA_James LawnSite Silver Member
    from Iowa
    Messages: 2,592

    No, it's China this time. Those darn Mexicans are getting too expensive for their own good in some industries, and we must offshore from Mexico.

  5. PHS

    PHS LawnSite Senior Member
    Messages: 724

    Maybe, maybe not. I take it you've never lived or worked in CA before. As the numbers of illegal immigrants increases so too does the strain on public services like 'free education', health care (primarily emergency room), incarceration, etc. Public services are paid for by tax payer money and newsflash nit-wit, businesses are saddled with a large (and increasing) tax burden too in this country. Taxes are as big and often a bigger reason for companies moving operations to foreign countries rather than simply the cost of labor because much labor can be mechanized as you pointed out for us.

    So just in case you aren't making the connection...increase costs = increased taxes = companies moving. Just look at the flood of people and companies moving out of CA right now in large part because they're letting the state be overrun.
  6. patron

    patron LawnSite Member
    Messages: 180

    News Flash READ THE STORY
    It May say something about a $80,000 a year tax break!

    This factory also received major tax abatements when it was built.

    And in this town there were no city payroll taxes until 1995.
    After a Merger with the City payroll taxes were collected at 1%
    In 2005 the were raised to 2 % (by a vote of the people)

    I never said any thing about "labor can be mechanized"

    I take it you have not been to this part of Ohio.

    In this area of the country we DO NOT have any large number of ILLEGALS!


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