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January 30, 2014
www.thebuchanancountynews.com
75 Cents
By Christine Dale, Assistant Editor
As if it isn’t cold enough outside, propane users could feel a chilly draft in their wallet. A propane shortage throughout the Midwest has caused prices for the fuel to reach record levels approaching $5 per gallon. A ripple effect is already being felt throughout the country. According to the Los Angeles Times, last week public schools in one Tennessee county closed for two days due to low propane levels. When it finally received fuel, it paid nearly three times more than it had previously, which is hard on the school budget. On Monday, the Washington Post reported Midwest propane inventory was approximately two-thirds of its five-year average, and 40% lower than this time last year. Causes include an unusually wet fall creating more demand by farmers to dry crops, a particularly cold winter throughout the U.S., and maintenance on a major pipeline that led to a temporary shutdown. In an effort to improve the situation, the U.S. Department of Transportation established a regional emergency declaration, effective through Feb. 11, relaxing some of the regulations affecting commercial drivers who transport propane.
Bridal fair postponed due to severe weather
Propane shortage
According to the NBC Today Show, one doesn’t have to go big city to enjoy a wealthy life – it can be found as close as Des Moines. The program recently did a threepart series called Healthy, Wealthy and Wise, which identified three U.S. cities their research indicated were the most healthy, wealthy or wise. Des Moines, deemed the wealthiest city for regular people to lead a rich life in the U.S., was reported to have a cost of living about 10% below the rest of the country. Forbes Magazine named the Iowa capital the best city for business and careers, and Kiplinger said it was the best city for families. Among other industries, Des Moines is home for publishing and technology companies, as well as insurance and financial services. The program ranked the Twin Cities, Minneapolis and St. Paul MN, the healthiest and San Jose CA the smartest city.
Wealthiest city
L&M Radiator to close in March By Mary Beth Smith, Editor
L&M Radiator has announced plans to close its Independence plant March 28. The 25 Independence employees were told of the decision last Tuesday. L&M, which manufactures heat exchange radiators for large equipment, began operations in Independence in 2005, expanding in 2011. The company’s headquarters is in Hibbing MN with sites in Yankton SD and Las Cruces NM. It was also announced that the Las Cruces plant will close in March. L&M has international operations in Chile, Mexico, and Australia. All plants have seen decline in production. According to Buchanan County Economic Development (BCEDC) Director Nate Clayberg, L&M has been affected by the global downturn in demand for large mining equip-
ment. Their major customers are Caterpillar and Komatsu. After the recession, demand for large equipment took off, which increased demand for the Mesabi brand heat exchangers manufactured by L&M. At their peak, L&M employed about 125 in Independence, running three shifts. Clayberg said, “Over the last six months I have seen their employment levels drop. From a time a couple years ago when they couldn’t keep up with customer demand and hire enough people, the industry downturn has affected a great family-owned company. I was told that their customers are sitting on a lot of inventory that has not been sold, so demand for increased orders for new equipment has all but dried up. I know they tried to keep the plant going as long as they could. The loss of sales and operating four
domestic plants was just too much to handle financially for the company.” Clayberg is optimistic that “when the industry bounces back, they could look to reopen the plant. I would say they are not closing the door on Independence, just closing the door on the plant for now. … The loss will affect our municipal airport since the company used [it] throughout the year with their corporate aircraft to visit the Independence site.” For now, L&M will continue to lease the Independence building. Clayberg stated, “I don’t expect to market the building as available right now since I would expect L&M to look at ramping up if and when the market comes back, at least in the next year.” Clayberg said sub-leasing a portion of the local plant for me-
Northeast Iowa Bridal Fair is rescheduled for Sunday, Feb. 2 at Henderson Events Center, 2320 Iowa Ave, Independence, due to severe winter weather conditions on the previous date, Sunday, Jan. 27. The event time, noon to 4 PM with a 3 PM fashion show, remains the same. Learn more at www. neiowabridalfair.com dium- to long-term warehousing is a possibility “since we have had demand for that in our area.” Clayberg is assisting L&M’s human resources department and Iowa Workforce Development with employee needs. There may be some relocation opportunities to other plants.
Independence to host RAGBRAI riders overnight
Business Council to hire veterans
The Iowa Business Council, a non-profit, non-partisan organization comprised of major Iowa employers, has announced their support of the governor’s Home Base Iowa initiative. Collectively, members of the Iowa Business Council have set a goal of hiring 2,500 veterans over the next five years. The initiative was founded to serve as a comprehensive source for job services available to veterans. Gov. Branstad commented, “ In coming years, our nation will experience a great influx of returning military personnel. These individuals possess very unique skillsets and will be invaluable to Iowa businesses.” Cumulatively, Iowa Business Council members employ nearly 250,000 people in all 99 Iowa counties. For information about Home Base Iowa and how to support and engage veterans, visit www.homebaseiowa.org
The 2014 Register’s Annual Great Bicycle Ride Across Iowa (RAGBRAI) route was announced Saturday night. Independence will host bicyclists overnight on Friday during this 42nd year for the ride, to be held July 20-26 with an estimated 10,000 participants. Independence was selected as an overnight town in both 1983 and 2007, and a passthrough town in 2005.
Organizers state this year’s ride, through the northern part of the state, “gets back to small towns. There are no big cities this year.” The ride begins in Rock Valley and ends 418 miles later in Guttenberg. Pictured are members of the Dream Team Bicycle Club holding signs displayed at the route announcement party. (Photo submitted by IowaNewsNow.Net)