Bearing Witness 2.0: Economy Forces One Family Business To Move Jobs Overseas

Sarah Atkinson Ramirez shared her story with HuffPost. Her story affect her entire town, a town that her family helped build. Sarah runs the Atkinson Candy Company, which has operated out of Lufkin, TX since 1932, and she faces a choice she is loath to make, outsourcing the jobs of people who have come to rely on her.

In Sarah's words:

My great grandfather started this business during the height of the Depression. He was laid off his job as a factory worker and had two young children at home to feed. He took what little money he had loaded up the family in the car and drove to Houston, TX, which in those days was a two week jaunt (now only two hours). While in Houston he purchased a good amount of candies, cigarettes, and other tobacco goods to bring back to Lufkin to sell. He continued his wholesale operation for several years running as a candy/tobacco jobber. In the late 1930's he decided that it would be more profitable manufacturing candy so he set up shop and the rest as they say is history.

Flash forward to today. I am the fourth generation to be working in the business my dear great grandfather started out of necessity for his family. We are not the biggest candy manufacturer in the business, but we're not the smallest either... Our business has grown tremendously from the small one room kitchen in the 1940's to the ever-expanding facility we have today. Our products and manufacturing techniques have evolved over the years...all in all we are the all American entrepreneur's dream. Until now.

When the economic situation first began to make headlines we were hardly affected. We are still a family owned business without any shareholders to report to...we had plenty of working capital...we had workers ready and willing to get the job done...we had costs that were challenging, but manageable. Now we are watching as most of our business is taken off shore to China, Mexico, and Brazil. With the current Farm Bill and sugar import quotas it is no longer possible for us to apply our trade within the confines of the USA (See a recent article from Business Week here regarding this crisis within the food industry).

What kind of country do we live in that small to medium sized business owners with an entrepreneurial spirit and some decent working capital (we rarely borrow from banks) has to LEAVE the country to keep a 76 year old business IN business? Now my great grandfather always said "candy sells when times are good, but even better when they aren't." For him this was true...even during the Great Depression he was able to build a thriving business. In today's depression/recession whatever you want to call it we have to bail to third world countries!

Our company is currently working to relocate some of our production to Guatemala. Given the cost factors we can no longer afford to operate our entire business here. This means that people will lose jobs. This means that one of the largest employers in a small East Texas town will disappear after being around 76 years. We don't want to do this. I don't want to have to tell people sorry you can't work here anymore. I don't want to have to move to Guatemala! I want to stay right here in my hometown and keep the family tradition going. It's a sweet business, but it is a business after all. If we want to be able to leave a legacy for the fifth generation we have to do something...we are left with no other choice and that is sad.

As long as major corporations and large lobby groups continue to wrap their collective fingers around the necks of our Senators and Congressmen...and as long as those Senators and Congressmen keep giving in...people like us will continue to disappear and all that will be left are greedy, manipulative, impersonal, and cold hearted corporations.

This story is part of Bearing Witness 2.0. HuffPost Eyes & Ears is asking for stories of the tragic human cost of the corruption and greed that have brought us this financial crisis, and for examples of recession heroes.

 

 

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Comments

[KC the SuperDog]

I need some chocolate.

[KC the SuperDog]

The US can't compete with third world countries, like Brazil, Russia, India and China because those counties do not have any labor laws to protect their employees or proper corporate laws to protect the environment or consumers (ex: China's products.. lead paint one day, chopping kid's fingers off the next).

Second, even US companies that are PROFITABLE are sending their US jobs overseas so they can make MORE money. IBM, after releasing positive 2008 year end results and bragging that they are not impacted by the economic crises laid off 10,000 US workers in the first 90 days of 2009. The rumours on the alliance website now say that they will do this again in 2010 (8-10,000 US workers). In 2009 IBM hired TWICE the number they laid off in India alone. This shift is strategic, IBM has a patent on how to do it.. they have gone from Americans = 80% of their huge workforce to now 20% in the US. Kick em out of the US I say, and let's make SURE they receive no stimulus work from Obama.

Greed in the BRIC countries, who abuse, kill, and maim for the sake of profits and Greed in US companies - who can't be satisfied with acceptable profits, millionaires like Bob Moffat who can't be happy as a millionare, want more more more.

I don't have the answers but I do my part when I can - I buy local and I don't buy from companies like IBM.

[leevntheus]

Holding Cuba down helps control sugar. Just like holding Iran and Libya down helps control the oil markets.

Its all rigged by old old money; families that you will never see or hear of whose grand nieces and nephews and such that have never worked a day in their lives chill out in multi million dollar apartments in NYC and Connecticut and Switzerland.

Its ALL trickle down...it always has been trickle down.

Everything else is their fishbowl. And we're the fish.

Wake up.

[imajoebob]

I think you slept through your alarm.

"Holding Cuba down" controls sugar?? No, ridiculous import duties controls sugar prices. Cuba wrecked their agri-business all on their own. Brazil clobbers them in both productivity and output. In fact, Brazil clobbers the US is ethanol production using sugar. But those pesky tariffs are also protecting the corn farmers.

Stop hitting the snooze alarm, lose the ridiculous crap about "old money" and read a book written after 1959. Perhaps you can regale us with tales of the Trilateral Commission next time.

[LeeCalif]

The article doesn't really explain things.

Are our minimum wage laws an impediment ? Or our environmental laws ?

This is why tariffs need to be accessed on ALL ALL ALL foreign goods.

That will bring manufacturing and profit and JOBS, back to our shores !!!

And the sooner, the better !!!

[imajoebob]

This reeks of a planted story by an industry press rep.

The only "cost factor" cited is sugar import tariffs. Nothing about property taxes, payroll taxes, inability to borrow, not even HEALTH CARE!!! So ALL of the problems are the result of expensive domestic sugar?

Really? REALLY?

What a crock.

[hulagirrrl]

Funny, just read this, and thought, mhhh, candy factory must outsource due to high price of sugar??

http://www.honoluluadvertiser.com/article/20090924/NEWS0102/909240309/Kaua+i+sugar+plantation+prepares+final+harvest

[Tom95134]

Every one in your factory should be thankful for the 8 years of Bush when most of the changes that are killing your business got pushed through Congress.

[liberalcynic]

Nothig wrong with jobs godivg oversea as
The income flows back as there are cost savings use that to import.
That's how imperialism worked

[ILibertine]

That's sound logic if you're economic aspiration is Chinese sneakers. It ain't that simple, which is why China holds much of our debt.

[hulagirrrl]

I am funny about buying imported food stuff. The only imported things that I buy are from countries where i know the health and safety standards exceed the US, not the other way around.

[land2341]

We are creating potentially serious food supply issues by allowing multinational corporations like Monsanto and ConAgra to fully dominate food production. Anti-trust laws have not been used to scrutinize these companies. We recognized the impact on business of a microsoft monopoly, but we ignore the impact of a food production monopoly until it is too late.

[hulagirrrl]

We need stronger consumer protection groups, but how do we start? I would love to be part of such a movement.

[KC the SuperDog]

Shake it hula girl, I'm with you. I'm tired of finding out my Made In China product will kill or maim me.

[marijam]

Sounds like propaganda to me. If its cheaper to go overseas and ship it back, then there's a reason besides sugar. What other well-known candy company, hint "chocolate", recently moved everything overseas because of sugar costs? Really, it had to have been labor and larger profits, but who wants to admit killing an entire town because of greed?

[hulagirrrl]

Hershey chocolate went to Mexico, and it was probably the usual shareholder greed, but where the rising costs come from was not explained. Sugar is awfully expensive in this country. I can buy a pound of sugar for about sixty to eighty cents in most supermarkets in Europe. I think there is a monopoly on sugar in the US?

[leevntheus]

My dear, sugar is one of the OLDEST old old money commodity insider scams ever. As far as the Americas go, we're talking since the 1500's. Slaves, empires, wars...you name it...its been done all in the name of sugar control. Really, only oil trumps sugar when it comes to man's greed and avarice. And oil's only been around since 1859 or so. Sugar money has been aggregated for 300 more years than THAT!!!

Kinda puts it in perspective, donchya think?

[canuck99]

The Colbert Report on sugar shortage.

http://ucpress.typepad.com/ucpresslog/2009/08/nestlecolbertsugarshortage.html

[canuck99]

You all might want to read this article to gain some perspective of the sugar market.

http://www.foodproductiondaily.com/Supply-Chain/Sugar-and-strife-not-so-nice-if-the-price-is-not-right

[land2341]

Thank you for this info. The whole issue of staying competitive rests on these price controls containing balancing forces. Protectionism does have its place, as does extra efforts to maintain internal business standards that promote the purchase of locally produced products.

It is simply not logical that it is cheaper to make something overseas and import it back than it is to manufacture it here unless the price manipulations are deeply flawed on behalf of the large multi-national corporations, and this is precisely what we are seeing. These circumstances are directly tied to corporations like ConAgra and Monsanto.

[vippy]

Let her move overseas and when she bring in the candy, then tax it! Make up the difference in import tax. We need to hold on to our jobs. Scan your purchases and buy only Made in the USA. Not much but it is a start.

[loki]

I think more than likely people like her have been thinking of doing this for a long time, they just needed something to disguise it under so they wouldnt be seen as just wanting to increase the profits. She did this quickly, so you know It was pre planned for a while and was going to happen, the economy is just a wonderful cover story.

[ILibertine]

Yep. You got it!

Some retort that you can't find non-China or Mexico goods, and sometimes you don't know (but that GM or Ford is plenty south of the border). There aren't always options. People who believe this a problem should make conscious decisions to make do without that imported product, or pay extra in the event there's a choice between foreign and USA produced. But Congress needs to get involved with making this a consumer-friendly process (pricing and full disclosure of where a product and its parts are made).

[CarmanK]

I think grandfather had more spirit and patriotism, than does this 4th generation of business operators. The founder of the company produced a product, used his ingenuity to build a company and demonstrated his loyalty to his town and his customers time and again. This is just a cop out." Pretty much like the descedent Waltons who took their multi millionaire inheritaces and impersonalized the company to a multi national status with no character or stamina. It takes hard work, innovation and imagination to really build a company. Too many times the heirs to "the fortune" take the easy way out, because they have nothing to contribute. Blame the government, blame the customers, blame the country. It is the blame game accepting no responsibility. Obama needs to stop the bleeding of american jobs overseas. We need to rebuild the country, that takes imagination and vision. The business sector let america down a long time ago. They sold us out for the mighty buck. The Supreme Court needs to re difine the "personhood" of corporations. American corps are the" new oppressors". Instead of a monarchy, or an imperial presidency, we have Corporatism which is blind to human needs and robotic in its quests for power and wealth. We have to get congress to deflate bloating american businesses, or the american people will be subject to the "new world order" without a vote or our permission. We are allowing corporations to destroy our democracy from within.

[shthar]

She needs to lobby to remove the cuban sugar embargo.