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April 18, 2008
Plant closings and layoffs in Northwest Georgia are straining the resources of the Coosa Valley Regional Development Center’s workforce investment program.
Gwen Dellinger, director of the program, said about 3,600 workers in the 15-county region have lost jobs since July 2007 — the worst record in the state.
“It is our region that’s being affected (by the economic downturn),” she told members of the CVRDC board Thursday. “We are the manufacturing base of Georgia.”
Dellinger wrangled $140,000 in dislocated worker training funds the Southeast Georgia RDC wasn’t using, and the state kicked in another $250,000.
But she said the U.S. Department of Labor is now looking for refunds from the states, including $9 million from Georgia, to redirect to other programs. “We think our area won’t be touched by that because we spent ours,” Dellinger said, but warned that the Labor Department is projected to cut the “rapid response” retraining program by 26 percent next year.
The region should brace for more financial hits within the next six months, said board member David Hammond, a Calhoun city commissioner.
Hammond said escalating corn prices have affected the production of poultry and other meat. An industry report shows consumers will be seeing price hikes between 10 percent and 43 percent.
“With the layoffs, high fuel prices and now food, it’s the perfect storm,” he said. “It’s going to be a biggie.”
On the plus side, a new federal program is expected to provide about $750,000 next year to train workers for emerging industries.
Bill Steiner, CVRDC executive director, said there could be as many as 31 nuclear power plants built in the U.S. during the next decade — and utility and construction workers will be at a premium.
Alabama Power Co. is in talks with the Nuclear Regulatory Commission on a proposal and asked for a letter of support from the CVRDC.
After a brief discussion, the board unanimously agreed.
“The outcry from the consumer has changed, now that energy prices have impacted them,” Hammond said. “Nuclear power plants are economical and cleaner (than coal-fired electric plants). I think it’s the wave of the future.”
The CVRDC has partnered with northeast Alabama and southeast Tennessee in a 26-county public/private collaboration called the Tri-State Regional Alliance.
“We want to identify what this region needs to be competitive — which companies are growing and what are the gaps between workers’ skills and upcoming jobs,” Dellinger said.
Some federal Economic Development Administration funding could be available from Chattanooga, Tenn., she said, and the alliance is also seeking a $2 million grant to boost science and technology skills.
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