$93 million investment revives struggling Bloomington GE plant

Carven Thomas feels blessed.

The Bloomington GE union president celebrated with co-workers Monday when GE announced a $93 million investment in the plant as part of a $161 million initiative through 2014.

“To go from having to look for a job to knowing you’re going to have a job — a good job — for the next few years, that’s indescribable,” he said.

The 44-year-old factory worker endured years of layoffs and closure threats, wondering if and when his job would cease to exist.

At one point, he viewed the plant’s uncertain situation as a positive opportunity to go back to school and take on the challenge of a new career. That was before the economic collapse.

Suddenly, he found himself facing the daunting reality of competing against recent college graduates with bachelor’s degrees in an unstable economic climate.

Though previously threatened with a closing announcement two years ago, the plant now faces a significant investment for its future.

The funding will convert the plant to run the new, energy-efficient products of the future.

The conversion is crucial in a time when legislation continues to push for new energy efficient units and appliances, Thomas said.

The investment also marks a change in strategies, as GE spent the past 12 years transferring production away from the Bloomington facility.

“GE’s investment indicates the company’s faith in Bloomington and its workforce,” Mayor Mark Kruzan said in an e-mail. “This really is a perfect case study of what staying competitive and relevant means to the American workforce.”

The side-by-side refrigerators from the plant will now meet anticipated high-efficiency Energy Star criteria as well as the 2014 U.S. Department of Energy efficiency standards.

The funding will also create 200 jobs by 2014, bringing employment back to numbers similar to before last fall’s layoff of about 190 workers.

Based on this job creation plan, the company can receive up to $2.25 million in performance-based tax credits from the Indiana Economic Development Corporation.

The benefit of those 200 jobs goes beyond the four walls of GE, said Ron Walker, director of the Bloomington Economic Development Corporation.

As a result of supplier relationships and consumer spending, Walker projected that 170 outside jobs will benefit from the addition of 200 new GE jobs. This equates to about 140 households affected by the addition.

Outside businesses also benefit, as the plant requires services and utilities.

“They require everything from maintenance to food to paper towels,” Walker said. “All down the line they need things, and there are other companies that provide those things.”

The economic ripple effect of this investment should not be underestimated, Kruzan said.

“The buying power of the company and its employees means more dollars circulating through our community, which is really one of the defining aspects of what keeps a community livable,” Kruzan said. “The fact that not only is GE staying open, but is adding 200 jobs is nothing short of a blessing for Bloomington.”