Lake Mills prepares for layoffs

Officials looking for ways to bring other industries in

By Jason Schoonover | Albert Lea Tribune

Published Friday, September 4, 2009

A little more than a week after learning that Cummins Filtration, the largest company in Lake Mills, Iowa, will cut about 400 employees, town officials are working to keep those workers in the community.

“Hopefully, we can bring another company in that will be able to utilize these workers, or maybe they’ll be able to find jobs within driving distance and will choose to stay in Lake Mills. We hope that we really don’t see the impact that could be possible,” said Lake Mills Chamber Development Corp. Director Marilyn Hoffman.

Hoffman and other city officials are already searching for new businesses to come to Lake Mills, and they’re researching what companies may be looking to relocate.

“We’re going to be doing whatever we can to bring another industry in,” Hoffman said.

No timetable has been set for the addition of a business, and Hoffman said it’s difficult to plan ahead because they don’t know which of the Cummins buildings will be vacated.

One of the first steps to attract a new business is a rapid response team that will meet with Cummins employees next week. The response team includes Iowa Workforce Development and the Iowa Department of Human Services. The team will go over the resources available to the employees.

Sometime after the initial meeting, Iowa Workforce Development will give employees a skills test. Hoffman said that information will help them market the skills of the employees when they market the building.

Hoffman also said it’s possible Cummins employees and community members could want to open a business.

Cummins currently employs about 510 people, which is the most of any business in Lake Mills, Hoffman said. The next largest employer is Larson Manufacturing Co., which employs about 200 people in Lake Mills.

Aside from the loss of jobs, the Cummins layoffs will have numerous effects throughout the city. The closing of the Cummins building will affect city utilities. Other businesses in town that had contracts with Cummins will lose work, Hoffman said.

The change will also affect the schools, as Hoffman said about 73 Lake Mills students have parents who work at Cummins.

According to the U.S. Bureau of Labor Statistics, Winnebago County had an unemployment rate of 8.8 percent as of July. That number will likely rise after the Cummins cuts.

The first layoffs will occur around Nov. 15, then there will be a few in the end of December and the final layoffs will be in March of 2010.

Lake Mills has turned to other communities that went through a similar situation to learn how to best cope with the loss of jobs. Hoffman contacted officials in Newton, Iowa, a town that lost the Maytag Corp. headquarters after Whirlpool Corp. bought Maytag. The topic was even featured in The New York Times in 2007. From Newton officials, Hoffman has learned the importance of community involvement.

“You need to get the whole community involved with this,” she said. “This is not just strictly the city leaders that need to be involved. This is pulling the community together, getting their input. The community residents need to feel like they’re part of this.”

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