U.S. Towns Court Green Companies to Bring Back
the Paychecks
Nov 03 - International Herald Tribune
Like his uncle, his grandfather and many of their neighbors, Arie Versendaal
spent decades working at the Maytag factory here, turning coils of steel
into washing machines.
When the plant closed last year, taking 1,800 jobs out of this town of
16,000 people, it seemed a familiar story of U.S. industrial decline:
another company town brought to its knees by the vagaries of global trade.
Except that Versendaal has a new factory job, at a plant here that makes
blades for turbines that turn wind into electricity. Across the road, in the
old Maytag factory, another company is building concrete towers to support
the massive turbines. Together, the two plants are expected to employ nearly
700 people by early next year.
"Life's not over," Versendaal said. "For 35 years, I pounded my body to the
ground. Now, I feel like I'm doing something beneficial for mankind and the
United States. We've got to get used to depending on ourselves instead of
something else, and wind is free. The wind is blowing out there for anybody
to use."
From the faded steel enclaves of Pennsylvania to the reeling auto towns of
Michigan and Ohio, state and local governments are aggressively courting
manufacturing companies that supply wind energy farms, solar electricity
plants and factories that turn crops into diesel fuel.
This courtship has less to do with the loftiest aims of renewable energy
proponents - curbing greenhouse gas emissions and lessening U.S. dependence
on foreign oil - and more to do with paychecks. In the face of rising
unemployment, renewable energy has become a crucial source of good jobs,
particularly for laid-off workers of the so-called Rust Belt.
With a U.S. presidential election campaign dominated by economic concerns,
wind turbines and solar panels seem as ubiquitous in campaign advertisements
as the American flag.
No one believes that renewable energy can fully replace what has been lost
on the factory floor, where people with no college education have
traditionally been able to finance middle-class lives.
Many at Maytag earned $20 an hour in addition to health benefits.
Versendaal now earns about $13 an hour.
Still, it is a beginning in a sector of the economy that has been marked by
wrenching endings, potentially a second chance for factory workers
accustomed to layoffs and diminished aspirations.
In West Branch, Iowa, a town of 2,000 people east of Iowa City, workers now
assemble wind turbines in a former pump factory. In northwestern Ohio, glass
factories suffering because of the downturn in the auto industry are
retooling to make solar energy panels.
"The green we're interested in is cash," said Norman Johnston, who started a
solar cell factory called Solar Fields in Toledo in 2003.
The potential market is big. In a report last year, the Energy Department
said the United States could make wind energy the source of one-fifth of its
electricity by 2030, up from about 2 percent today. That would require
nearly $500 billion in new construction and add more than three million
jobs, the report said. Much of the growth would be around the Great Lakes in
the northeastern United States, the hardest-hit region in a country that has
lost four million manufacturing jobs over the last decade.
Throw in solar energy along with generating power from crops, and the
continued embrace of renewable energy would create as many as five million
jobs by 2030, said Daniel Kammen, director of the Renewable and Appropriate
Energy Laboratory at the University of California, Berkeley, and an adviser
to the presidential campaign of Senator Barack Obama.
The financial crisis is expected to slow development, making investment
harder to secure. But renewable energy has already gathered what analysts
say is unstoppable momentum. In Texas, the oil developer T. Boone Pickens is
creating what would be the largest wind farm in the world. Most states now
require that a significant percentage of electricity be generated from wind,
solar and biofuels, effectively giving the market a government mandate.
And many analysts expect the United States to eventually embrace some form
of new regulatory system aimed at curbing global warming that would force
coal-fired electricity plants to pay for the pollution they emit. That could
make wind, solar and other alternative fuels competitive in terms of the
cost of producing electricity.
Both presidential candidates have made expanding renewable energy a policy
priority. Obama, the Democratic nominee, has outlined plans to spend $150
billion over the next decade to spur private companies to invest. Senator
John McCain, the Republican nominee, has spoken more generally of the need
for investment.
In June, more than 12,000 people and 770 exhibitors jammed a convention
center in Houston for the annual American Wind Energy Association trade
show.
"Five years ago, we were all walking around in Birkenstocks," said John
Brown, managing director of a turbine manufacturer, Entegrity Wind Systems
of Boulder, Colorado, which had a booth on the show floor. "Now it's all
suits. You go to a seminar, and it's getting taught by lawyers and bankers."
So it goes in Iowa. Perched on the edge of the Great Plains - the so-called
Saudi Arabia of wind - the state has rapidly become a leading manufacturing
center for wind power equipment.
"We are blessed with certainly some of the best wind in the world," says
Chet Culver, the governor of Iowa.
Maytag was born in Newton more than a century ago. Even after the company
swelled into a global enterprise, its headquarters remained here, in the
center of the state, east of Des Moines.
"Newton was an island," said Ted Johnson, the president of local chapter of
the United Automobile Workers, which represented Maytag workers. "We saw
autos go through hard times, other industries. But we still had meat on our
barbecues."
The end began in the summer of 2005. Whirlpool, the appliance conglomerate,
swallowed up Maytag. As the word spread that local jobs were doomed -
Whirlpool was consolidating three factories' production into two - workers
unloaded their memorabilia at Pappy's Antique Mall downtown: coffee mugs,
buttons, award plaques.
"If it said Maytag on it, we bought it," says Susie Jones, the store
manager. "At first, I thought the stuff had value. Then, it was out of the
kindness of my heart. And now I don't have any heart left. It don't sell.
People are mad at them. They ripped out our soul."
When the town needed a library, a park or a community college, Maytag lent a
hand. The company was Newton's largest employer, its wages paying for tidy
houses, new cars, weddings, retirement parties and funerals.
As Whirlpool made plans to close the factory, state and county economic
development officials scrambled to attract new employers. In June 2007, the
local government sent a team to the American Wind Energy Association show in
Los Angeles. Weeks later, a company called TPI Composites arrived in Newton
to have a look.
TPI, based in Arizona, makes wind turbine blades by layering strips of
fiberglass into large molds, requiring a long work space. The Maytag plant
was too short. So local officials showed TPI an undeveloped piece of land
encircled by cornfields on the edge of town where a new plant could be
built.
Although TPI was considering a site in Mexico with low labor costs, Newton
had a better location. Rail lines and Interstate 80 connect it to the Great
Plains in the central part of the United States, where the turbines are
needed. Former Maytag employees were eager for work, and the community
college was ready to teach them blade-making.
Newton won. In exchange for $6 million in tax sweeteners, TPI promised to
hire 500 people by 2010. It has already hired about 225 and is on track to
have a work force of 290 by mid-November.
"Getting 500 jobs in one swoop is like winning the lottery," says the mayor
of Newton, Chaz Allen. "We don't have to just roll over and die."
Originally published by The New York Times Media Group.
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