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Another Wilmington business to shut down

Another Wilmington business will be closing its doors. The National Gypsum Dry Wall Plant in Wilmington will shut down on January 19, 2008. The closing will put 63 people out of work. A spokeswoman for the company said the slump in the housing market has diminished demand for dry wall and company profits. She added the company hopes to re-open the plant when things pick back up.

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Very sad to see this... I

Very sad to see this... I know many of these folks from Charity events we participated in with them. Great people who where always ready to pitch in when needed. The ripple effect from this will be more than financial. A big loss for Wilmington.

A sign of the times and a

A sign of the times and a prime example of how the mishandling of the financial markets and sub prime mortage issues are hitting home. These people and this plant was actually recognized as one of the 10 Best Manufacturing plants in North America a year ago. (Look them up on or google this plant.) The reckless ways of a an out of control financial market just took out one of the best in the manufacturing business. If we are looking to bail out the "BIG 3" what about the likes of these people who have shown the ability to run a business, unlike the likes of General Motors. If we are going to bail out at all, we should bail out the right people!

Don't be so naive

Washington could care less about the Big Three. When they act (and they likely will, after the issue leaves the headlines) it will be a UAW bailout. We'll give the Big Three billions to operate for another two or three years, and they can then be at bankruptcy's door again....but that's two or three more years where the average UAW worker will pull in the ridiculous wages and benefits these idiots agreed to pay. My favorite? The company has to make up the difference between your salary and UAW pension if you retire before you start collecting Social Security. With wages and benefits calculated, the average UAW worker at the Big Three pulls in over seventy dollars an hour. Now, the UAW has made concessions for newer workers and that figure is gradually coming down, but the companies are in the mess they're in in great part because they never stood up to the unions. Just like the American steel industry in the Seventies and Eighties, you have seen organized labor help destroy an entire industry. Regarding National Gypsum, the government can't create a demand for drywall. Accordingly, there's nothing the government can do to help them. The simple fact is that we (the buyers, sellers, owners, house flippers, appraisers, realtors) went crazy in the past ten years. We did this to ourselves because we were all chasing the big, fast buck. House-flipping became a major cottage industry. Yes, the banks made lots of mistakes, but WE, the people, drove the prices up and up and up until we caused a massive glut in housing and a woefully inflated housing value. Then we discovered that the emperor had no clothes. People woke up and realized that a housing market with a thirty-percent increase in value per annum was a load of nonsense! And when the house-flippers found themselves facing an ARM uptick on a house they suddenly couldn't sell, or a developer couldn't make the payment on a short term note because sales were in the toilet, the defaults started. Now, no one is building, we have large excesses in housing in many large, key markets, and any company whose product is related to residential construction is going to suffer for a LONG time. Even the "experts" (HA!) who are predicting an economic upturn in late 2009 or early 2010 will throw in a caveat, that their predictions do not inlude housing. That's a BIG chunk of the economy to have stagnated. Kitchen faucets, door locks, windows, refigerators and ranges all depend upon new construction. Replacement sales are a small portion of their revenue. The sad fact is that in the previously super-hot markets, where building went crazy, brand new homes are sitting unsold and empty, entire developments that are only a few years old are collapsing, and you may see a depressed housing market for five years or more.

Let's not forget

how well the foriegn auto makers do at plants in this country. In non-union settings, they produce automobiles which meet the consumer demands. They do so at an hourly rate, which includes benefits, at about $38 per hour as opposed to the Big 3 having an hourly rate of $72. $34 difference per hour adds up fast. Anyone remember Lee Iaccoca standing before the UAW and telling them Chrysler would not have any jobs at $20 per hour? They could operate at $16 per hour or shut down. The Union got the message.

job loss

Now another company is shutting its doors. What are they suppose to do now? NO ONE around here wants any new companies to come in,because it will make their property decrease in value. WELL all the people who think this needs to stop and think.Will their cushy little job be next to leave? If all these companies keep shutting their doors how are you going to get the stuff you need for your own house? Not only is it hurting the people at National gypsum its also hurting truck drivers,because we depend on their product so we can have loads to haul so we can take care OUR families.

I'm equally confused.

i don't know of ANYONE who doesn't want new businesses in the area. Those who are out of work need jobs, and those who have jobs often are looking for new opportunities.

Your comment

confuses me in part. How does an incoming new business or industry cause property values to drop? Were that true, cities and counties would be paying companies not to locate within their boundaries. You are correct to note the closure has a rippling affect. It hits the suppliers of the materials used in the production. It hits the drivers who deliver the materials and the finished products. It will certainly hit the 63 employees and their families. But all is not lost. The new administration will save everything on January 21. They are so confident, the President Elect did not even feel it was necessary to attend the recent Economic Summit; and that was despite the multiple requests and invitations he received. Imagine the affect on other businesses as the new administration begins taxing the small businesses as they have indicated they will do. The worst is yet to come. Let us hope it does not stay too long.