International Paper is shutting down plants. 3 International Paper mills will be closed and 1,600 International Paper workers will lose their jobs. Although International Paper announced the bad news this morning, their stock price rose 6 cents.
International Paper is headquartered in Memphis, Tennessee on Poplar Avenue. I’ve driven by their world headquarters hundreds of times. Although International Paper is closing mills in Virginia, Oregon, and Louisiana, the effects will be felt even in Memphis.
International Paper will take a $1 billion hit to their earnings, which will be reported in the current quarter and the first quarter of 2010. The worst casualties, however, are the 1,600 people that will lose their jobs.
So many American manufacturers are shutting down facilities. It’s scary to realize how much we don’t produce in the United States. There are hundreds of empty factories sprinkled through many states hit hard by the recession. The recession knows no boundaries, and no job is safe -particularly for manufacturers.
What could make this problem go away? For starters, there are many things we require domestically in the United States that should be manufactured here. For instance, military supplies, ammo, medical supplies, and vaccines. Basically, if something is a necessity rather than a discretionary item, it needs to be made in the US.
What would manufacturing items in the US do for us? All the displaced workers such as those from International Paper, General Motors, Chrysler, and all the thousands of other companies that have laid-off workers would have some skills useful to work at a re-tooled factory. This would help curb job losses.
International Paper is the nation’s largest producer of office paper. They also make containerboard, which is the paper product that boxes are made out of. They also make a variety of other paper products such as cupstock. Cupstock is the type of paper used to make Dixie cups.
The latest International Paper mill closings show us that no job is safe from the reaches of a recession. Although International Paper workers will get a combined severance of $60 million, many of the workers most likely fear that they won’t be able to get jobs once the severance money and unemployment benefits run out.
The best thing that American families can do in light of the recent recession is to spend wisely and get in a position to weather the storm as well as possible. Paying down debt and buying only what is needed are ways you can make money stretch farther in a tight economy.