Local control of key employers vital to quality of life
NEWARK – Maintaining local control of corporate decisions can make the difference between a community that's thriving and one that's dying, local officials claim.
Licking County reaps the benefits of Licking Memorial Health Systems, Park National Corp., Southgate Corp., MedBen and Anomatic having their headquarters in Newark.
The Heath-Newark-Licking County Port Authority exists to keep and attract companies to the Central Ohio Aerospace and Technology Center in Heath.
There's also Englefield Oil and Gummer Wholesale in Heath, ArmorSource in Hebron, MPW Industrial Services in Union Township, Tech International in Johnstown, Contract Lumber in Pataskala, and the Bath and Body Works building in New Albany, plus many more.
Maintaining local control was one of the five critical community needs The Advocate identified for this year's Five to Thrive series on the future of Newark and Licking County.
Rob Montagnese, president and CEO of Licking Memorial Health Systems, said local ownership is critical to the hospital's success in providing service to the community.
"I think it's extremely important and one of the topics our board and I discuss on a regular basis — maintaining our independence," Montagnese said.
"Because of that (independence), we are able to meet the needs of the community very quickly and very appropriately."
The health system remains independent, Montagnese said, by responding to the community's needs, considering feedback, offering the latest technology, and working with larger facilities for services they do not provide.
"The community allows us to be successful, and we are able to re-invest in the community," Montagnese said. "I think it's clear we have a very positive reputation throughout the state.
"Licking County is a wonderful place to live, work and raise a family. We are able to attract outstanding physicians."
Licking Memorial has long fought to prevent Columbus competitors from taking away its business, as large health care systems seek to buy hospitals, physician practices or rehabilitation facilities.
OhioHealth, for example, has facilities in eight Ohio cities.
"The larger health systems are very interested in what we do and how we do it," Montagnese said. "I'd say we must be an attractive health system. We do well but are very adamant we want to remain independent."
Licking County fortunate
The various locally owned companies, along with local assets such as the industrial parks, foundations, local developers and colleges, help ensure Licking County's future rests in its own hands.
"Businesses that are headquartered here, I would think, would be more anchored into the community," Heath Mayor Mark Johns said. "Southgate is a great example of an instance where a local company is really able to do a lot to positively impact this community. They've been a fantastic community partner in a number of way for many years."
A real estate development firm specializing in industrial and commercial properties, Southgate has filled three speculative manufacturing buildings in the past few years and continues building.
Southgate has built almost 50 spec buildings, most in the 600-acre Newark Ohio Industrial Park, which employs 4,000 people at 41 companies.
"A lot of communities would give their right arm to have someone like the O'Neills build spec buildings," Licking County Commissioner Tim Bubb said.
Park National Bank, Johns said, is another local business that has made invaluable contributions in Licking County.
"It's hard to imagine what the landscape would be like, for the whole county, without Park National Bank doing as much as they have over the years," Johns said.
Jim Lenner, village manager in Johnstown, credits Technical International for helping put Johnstown on the map. The tire repair company, with worldwide operations, has been based in the village for 75 years.
"With Tech, they create an identity for the community," Lenner said. "When you think of Technical International, you think of Johnstown. Like Park National and Newark. They're involved in the community.
"The sheer generosity to the village is also key. That continued relationship, I think, is irreplaceable."
No control of Meritor
Corporate decisions made by unknown executives in other states or countries can make or break a community.
Employee layoffs, benefit reductions and plant closings at a community's major employers can be devastating.
Rick Platt, president and CEO of the Heath-Newark-Licking County Port Authority, said he's seen what can happen when the control of key employers does not lie in local hands.
"I've lived in other communities and seen industries completely leave town," Platt said. "In Steubenville, our largest locally controlled bank was purchased, and it was like an on-off switch that went off. That was a wake-up call."
Meritor, based in Troy, Michigan, announced in April that it will close its Heath plant, putting the remaining 40 workers out of a job.
The former Rockwell plant that employed more than 1,000 in the 1980s, and opened in 1951, will be closed no later than Sept. 30.
Johns said it was difficult to lobby Meritor's leadership to keep the plant open.
"It was, perhaps, even less advantageous to not be able to have easier and more direct contact with the decision-makers involved in that process, but that wasn't the only reason why Meritor decided to close their operation in Heath," Johns said.
In 2008, the plant was saved from a possible closing through a massive negotiation effort involving city, union, company, county and state officials.
Positive 'ripple effect'
A major local employer doesn't usually just provide jobs for local residents. It also donates to local organizations, causes and foundations, and its leaders serve on key community organizations.
"When the CEO lives here and the company is based here, they have more invested in the community and more of a stake in the community," Bubb said.
Park National Bank, for example, donated $950,000 in 2013. Many of its employees also volunteer their time in the community.
Newark Mayor Jeff Hall said the companies based here are successful, which helps keep them in Newark.
"I think it's key and what makes it work around here," Hall said. "It's great for the community, the economy and the tax base."
Kurt Harden, MedBen president and chief operating officer, said its business comes from administering benefits to local companies such as Park National, Licking Memorial and Energy Cooperative.
"As a benefits provider, we think it's critically important to have local control," Harden said. "If the headquarters are far away, we're at the mercy of them and don't get to show ourselves for what we are.
"If it's a national company with a division here, I have no chance to administer their benefits. I never even got in the door at Meritor."
The business that local companies can provide for each other, as well as the community involvement of the companies, is hard to measure.
"The ripple effects are great," Harden said.
Montagnese agreed.
"If our local economy is strong and we have employers headquartered in the county, that strong economy allows more of our people to have outstanding health insurance."
A diverse group of locally owned employers has been credited for helping the county's economy bounce back from the recession. Employment reached an all-time high of 84,300 in May.
"Certain gems in our community, you have to embrace how important they are to our economy," Platt said.
kmallett@newark
advocate.com
740-328-8545
Twitter: @kmallett1958
WHAT ARE THE FIVE NEEDS?
This package is part of our year-long look into the five most pressing issues for Licking County.
• Closing the skills gap
• Creating drug-free workplaces
• Maintaining local control
• Restoring Newark's neighborhoods
• Capitalizing on Licking County's Location
Find all of our content for this series at www.newarkadvocate.com/future