Process changes at Smuckers plants

Last week, we talked about a local manufacturing company Big Ass fan. One of the biggest contributions to their success is the fact that they are a profitable company due to their high tech manufacturing process, it is a very "LEAN" process. In Wednesday's edition of the Lexington Herald leader, there was an article about another local company, J. M.Smuckers Co,a food processing manufacturer. The headlines read Smuckers closes 4 plants, cuts 15% of its work force. This is another unfortunate plant closure for our country. The company is planning on cutting 700 jobs in the process of closing these plants.

Fortunately for the Bluegrass,the Lexington plant is not one of the four that will be affected in the closures. The article stated that the company had invested money into the Lexington plant for renovations. This is a positive sign for the Lexington plant, often the plants that management plans on remaining open do receive funds for technological upgrades and renovations. An example of this management strategy is another Bluegrass plant, AGC glass, in Richmond Ky, during the economic crisis, they were forced to place that plant on "hot hold". AGC choose to spend millions in technical upgrades and renovations to improve their processes and cut costs. The other AGC plants that were placed on "hot Hold" did not receive any funds, and now have been permanently closed.

The article references that management at the Smuckers Co is planning on spending $220 million over the next 3 years to build a new plant in Orville Ohio, and improve process at their other locations. This new improvements will allow the company to have a smaller workforce, therefore cutting costs. Smuckers is following other industrial manufactures in an effort to remain profitable. The J. M. Smuckers Company expects to save 60 million dollars annually with the proposed changes.