The Rise of Outsourcing in Ohio
More and more companies appear to be sending jobs overseas and cutting jobs here in Ohio. The practice of outsourcing appears to have picked up plenty of steam last year. Joe Jeter, a former employee at Ranco Manufacturing, shares his experience of how his job was outsourced. "We were making money at our factory," Joe says. "We were profitable. But we weren't profitable enough." For most of Joe Jeter's adult life, he earned a paycheck from Ranco Manufacturing in Plain City. He helped make heat pumps for three decades until his job became someone else's.
The Impact on Ohio Jobs
Recently, there has been a significant increase in the number of Ohio jobs being sent overseas. At one point, it was rare for Ohio companies to outsource workers, but recent numbers tell another story. In the first quarter of 2004, roughly 11,000 people lost their jobs, with 9% of those lost jobs being replaced by positions overseas. Three months later, 32% of all the jobs lost by Ohio workers were replaced by foreign workers. In the third quarter of 2004, a staggering 42% of the jobs lost in the state were shipped overseas.
The Economics of Outsourcing
According to Capital University economics professor Dr. Robert Lawson, outsourcing can be beneficial when companies can find cheaper labor elsewhere. Dr. Lawson believes that anyone whose job doesn't require personal contact with a client could be a target for outsourcing, especially if the position is tied to a computer or a phone. He emphasizes the importance of having marketable skills to thrive in any economy. "The key for people is to have a marketable service," says Dr. Lawson.
The Upsides and Downsides of Outsourcing
While outsourcing may have negative consequences for some workers, it can also fuel the economy in certain cases. Doug Burnham, who runs Relizon, a company that takes on work other companies no longer want to staff, explains that they are able to save companies significant amounts of money. Relizon plans to expand their operations, which will lead to the creation of more jobs. However, for workers like Joe Jeter, who have spent their lives on assembly lines, the effects of outsourcing mean limited opportunities in an evolving economy.
Future Outlook and Concerns
The outsourcing trend shows no signs of slowing down. Earlier this month, NiSource, the parent company of Columbia Gas, announced its consideration to outsource the jobs of hundreds of employees in an attempt to cut costs. The uncertainty of whether these jobs will remain local or be sent overseas adds to the concerns of Ohio workers.
Combining the Topic of Hotels and the Article
While this article focuses on the outsourcing trend in Ohio, it is important to remember that there are other sectors of the economy that continue to grow. One such sector is the hotel industry. Hotels play a crucial role in attracting tourists, creating jobs, and contributing to the overall economic development of a region. As Ohio navigates the challenges posed by outsourcing, it's essential to explore opportunities to invest in industries like hospitality, which can drive local employment and provide stability for workers.