New company resumes operation at former JW Peters facility
By Jennifer Eisenbart
Staff Writer
Having sat idle for three years, there were some surprises at the former JW Peters precast concrete manufacturing site in Burlington last week.
Reopening under the name KW Precast, the first concrete slabs were poured with 17 employees making up the workforce.
JW Peters’ precast concrete merged operation with IPC of Iowa in the winter of 2009 and ended up laying off its employees and shutting down production later that year.
Cretex, which owned the two companies and the JW Peters site, did not pay severance to most of its employees, and the site has been quiet since then – with the exception of vandalism.
Part of the problem that led to the company’s downfall, according to new owner Ming King, was that JW Peters’ labor costs priced it out of the market, which bottomed out in 2009.
“Part of the reason is management things,” said King, a native of China who went to school in Wisconsin and has lived here his most of his life.
Both King and partner Bob Hassey are former JW Peters’ employees. The idea is to keep the company solvent with what they say are competitive labor costs – $9 an hour for production employees.
King and Hassey say that the lower pay scale is necessary to compete with companies operating out of Illinois – which is where much of the finished product will be going.
“The market just went dead,” said Hassey about JW Peters being forced to close in 2009. “The market has improved a little bit.
“Another reason why they went out of business was they could not compete with the Chicagoland area,” he added, pointing to the labor costs. “Producers down there have a very low labor rate.
King added, when asked if the rate was higher at JW Peters before, said, “Way high.” He added he’s extended the offer for former employees to return, but for the lower rate.
In the meantime, the two are trying to bring the production units back up to speed. Vandalism, King said, was rampant on the site, with a number of machines – plus the offices – suffering a good deal of damage.
Hassey said KW Precast was working with local businesses to bring everything back up to par.
“We’re working with local plumbers, electricians, carpenters, glass people,” “Whenever we can hire local, we’ve been doing it.”
Both men were long-time JW Peters employees – King 38 years and Hassey more than 40 – and they said Friday they are committed to the company for the long term.
“Here, we have a lot of good friends in different levels,” said King. “We all have a passion for this place. We want to come back.”
Another round of hiring is expected to take place in the next week or two, according to Hassey.
Both also said City Administrator Kevin Lahner had been a great deal of help in getting the business back into business.
“We’re very excited because they’re moving forward very quickly,” Lahner said Tuesday. “It’s really nice to see that reopen and bring some jobs back there.
Lahner said the new company has been working through the Racine County Economic Development Corp. to seek possible tax credits that would help it create more jobs. He also said KW Precast will likely tap into the city’s revolving loan fund as it seeks to upgrade facilities and equipment.
The new company is the second in a month’s time to begin operating on the sprawling former JW Peters site. In late June, the Racine County Board approved a rezoning that allowed Asphalt Contractors Inc. to begin operating on the portion of the site that is in the Town of Burlington.
While that proposal drew opposition from some area residents, Lahner said the KW Precast operation should face less scrutiny because it is the same type of factory that had been operating on the site.
However, he noted that neighbors have probably grown accustomed to the site being shuttered for the past three years.
“They likely notice it when things start up again,” he said.
-
-
-
-
-
In the current economic climate, it is encouraging to see these two try and bring back a once thriving business to Burlington, and I applaud them for their efforts. However, after knowing many former JW Peters employees that earned a family supporting wage, I think we have to all ask ourself where we are headed in this country. Nine dollars an hour is right at the poverty level for a family of three in the US. I understand that market conditions dictate much of what is available for wages, but this is one more example of a job that was once available at a higher standard of living, that is being replaced with a low wage. In a economy that is largely based on consumer spending, and consumers facing higher prices on everything from gas and groceries and everything in between, and declining wages and benefits, you have to ask where we are headed and how things are going to ultimately work out in the future for the American worker. Food for thought.
I agreed with most of what is said in this comment. I feel by all the high wages we priced out of a lot of jobs. The wage is not the only thing to consider. Health insurance is not cheap,but most people do not consider it part of their wages or any other benifits, paid vacations, paid holidays and so on. We want jobs in Burlington and the whole country. This is a good starting place. And if we all started being more conscious about where the products we do buy are being made or coming from it would also make a differerence. For a few cents more (maybe) buy American made products. That will produce more jobs here in America and put more people back to work. More food for thought.
Paul, you said it all and better han I ever could. The question also becomes, “How did Illinois keep their labor rate low?” I can’t believe persons legal to work in the U.S. would work in the business for minimum wage, in particular Illinois.
Anyone with common sense and a good work ethic will eventually find more gainful employment, leaving those 17 positions filled with……. Quality product made safely is the only long term plan for success.
Just a few more thoughts on this. My parents generation consisted of most households with one wage earner. Now in most cases it is two. With that being said, the average American’s appetite to buy more things escalated also. My generation, I see many friends, neighbors, who have minimum savings, small 401k contributions, or have emptied out their 401k once or more for a downpayment on a house. The generation behind us is even in worse shape. There is a pretty good chance that Social Security will be insolvent by the time we retire, and if not, it would be hard to live off of anyway. It just gets me thinking about what the future holds. Large amounts of elderly homeless people? In the depression, parents took their kids out of school to work to make ends meet. Do we re-visit that? There is a lot of “old money” still in play today that is helping the current younger generations get an education, help buy a house, pay for a wedding, etc. Is that going to be the case in the future? Were going backwards and the middle class of this country is going to be gone shortly.
All i can say is what a bunch of crap….I had several family members that worked for JW for many many years..Over priced Engineering,and some very very costly mistakes in a time when costs were tight .Yes the labor costs were higher then flipping burgers at Mcdonalds . Yet the work is very physically demanding.Working out in the elements all year round.Kinda funny on how JW’s competitor in Waukisha,Spancrete.. Pays union wages and has a great business with a large workforce.. KW Precast is just another company that is trying to get something for nothing.Taking full advantage of the slower economy to cut labor cost to just above poverty levels for their gains..
24 Years I worked there, management was so out of touch with reality for the last 4-6 years of operation it wasn’t funny. There were a lot of hard working dedicated union employee’s that put up with harsh conditions and LONG hours. I remember one day starting at 6 a.m. and getting done at 10:45 P.M. one day ! Management surrounded itself with yes men and did not want to deal with reality. I just feel fortunate I landed a better job with great pay that I like to go to, I just feel bad for some of my fellow Peters workers that were/are not so fortunate 🙁
spancrete employees only make 16 to 18 dollars per hour get your facts straight. they have a in house union it doesn’t pay the most and the waukesha plant no longer exsists.
When I was a young man I worked at Peters and back then it was a pretty good paying job. I understand wages is part of the cost of business. But the risk these guys take everyday on the job is not worth 9 dollars an hour. If I had a son I would tell him to go work at McDonald’s better pay and less of a chance of being killed.
I had the great pleasure of working at JWP for 25 years. From the perspective of an employee who worked in many facets of the operation, poor management was a major contributing factor for the failure of Cretex’s decision not to reopen the doors. Bottom line is no doubt the profit margins. Lets not forget the fact that when past employees in upper management worked there, they were part of the negotiating team that led to the wages and total benefit package. Every contract was approved by the mother company Cretex(JWP). I do wish both parties involved much success but there were two lives lost there and both of those deceast employess were seasoned veterans.
Some good times my friend, good times LOL
You brought up a good point Keith, two lives were lost. It is a serious and dangerous job and I don’t know what pay level makes it “worth it” but 9 dollars an hour sure seems like a super low ball wage.
I have to say for what it is worth…JWP lost business in part because they couldnt meet deadlines like others could because of various elements..one being work conditions another being management…Their main competitor was/is Spancrete in Illinois…many left JWP to seek employment there..They actually paid more not less and they were not exposed to the elements for they had indoor beds to pour their projects…so unlike JWP they did not have to deal with rain or snow calling off productions…The rising cost of health care made them have to cut benefits..including those of retired workers…they no longer would be covered..to me that was a slap in the face for men and women who broke their bodies making a living that JWP profited from…They thought that was a way to cut spending trying to stay afloat…It is dangerous hard work to say the least…and anyone who has slung concrete for a few years will tell you that your body will never be the same…I just think this is taking advantage of people whom are desperate for work and have few options because this is all they are able to do..all they know…Yes it’s better than it sitting empty when jobs are desperately needed…however this wage isn’t much above minimum yet the risk and wear on the body warrant a much higher income. I wish KW all the best with this endevour however I just had to comment that even in this time the wage is unfair to the work involved and not the only failing of the previous management/company to focus on.
My letter to the editor regarding KW Precast appeared in the Aug. 9th Burlington Standard Press. I also want to add a few online comments. Keith and Jim you may remember in Sept. 1995 JW Peters had a big tent meeting and Bob Hassey held up a newspaper with a fake headline-“JW Peters Closing”. This was the start of TQM or Continous Improvment Process. We formed committees and even started a newsletter. Everyone was Gung Ho! But by 1997 it all fell by the the wayside and in 2009 Bob Hassey s prediction came true.
Let’s touch on one thing. Why is the labor cost so low in Illinois? Here’s why, Mink King owns that too. Using the labor through a temp agency. Which means, no benefits, low hourly rate, and mostly non-citizens of the U.S.A. The high labor at JWP, well, I personally was on the negotiating team, every contract was approved. I also have the contract from Spancrete. Their wage package was comparable to ours. Let’s get all the facts before we speak.