Topeka consumer products manufacturer set to shut down
Lawrence-based Cardinal Brands announced today it would close its manufacturing plant in Topeka and shift operations to the Kansas City area. Enlarge video
Cardinal Brands Inc. is closing the last vestiges of its once-substantial manufacturing operations in Topeka, ceasing production in the city where the company's roots were established 118 years ago.
Cardinal Brands, with headquarters at 643 Mass. in downtown Lawrence, said it would combine its remaining production efforts in Topeka with an existing research-and-development center in Independence, Mo.
The move will cost Topeka about 60 jobs, and give the company's 15 employees in Independence a new work address. The two operations will be combined into a new center somewhere in the Kansas City metro area by the end of March 2008, said Phil Jones, the company's vice president for human resources.
The transition begins in April, as Cardinal continues to move the remainder of its other manufacturing equipment in Topeka to factories in Mexico, just across the Texas border. That ongoing move will eliminate another 65 Cardinal jobs by the end of this summer in Topeka, where Cardinal's predecessor - Adams Business Forms - had as many as 350 employees eight years ago.
"Our marketplace continues to rapidly change," said Jeff Morgan, Cardinal's executive vice president for operations, in a statement. "We have made several tough decisions regarding our Topeka operation over the last two years. We know this will be difficult for employees."
Cardinal will keep about 15 engineers, information technology professionals and purchasing personnel in Topeka, Jones said. They will remain at 200 S.W. Jackson, occupying a small portion of the 200,000-square-foot complex in downtown Topeka.
The bulk of the Topeka complex likely will be put up for sale, Jones said.
Cardinal's announcement came a week after Payless ShoeSource said it would be closing its 850,000-square-foot Topeka distribution center in the summer of 2008, a move that will put up to 550 people out of work.
Cardinal established its Lawrence headquarters soon after the company's formation with the November 2000 merger of Topeka-based Adams and St. Louis-based Eagle OPG.
Cardinal's Lawrence headquarters has 51 employees, including corporate management, marketing, accounting, sales and other support services.
"We plan to stay here," Jones said.
Cardinal designs, develops and manufactures business, consumer and hobby products that include shipping forms, business etiquette cards, three-ring binders, scrapbooking materials and dozens of others. The private company does not disclose sales, but Jones acknowledged that "we have been experiencing modest sales increases over the past several years."
The company has 1,600 employees overall, working in North America and Europe.
Adams was founded in 1889 by three brothers inside their Topeka kitchen, cranking up a foot-powered press on their sister's wedding day.
Comments
LJWorld.com doesn’t necessarily condone the comments here, nor does it review every post. Read our full policy. Also, read about banned accounts and harassing comments.
geekin_topekan (anonymous) says…
Those wacky Mexicans just continue to do it faster,better and cheaper.
I wonder if they offered existing employees the option to relocate with their jobs to the new plant?In Mexico?
werekoala (anonymous) says…
Here's a "Great Sucking Sound" for ya'. . .
bd (anonymous) says…
Thank you NAFTA!
With the flood of illegal immigrants and NAFTA, we don't have a chance!
We are doomed!
samsnewplace (anonymous) says…
bd good point! Everyday we hear of one more company shutting it's US doors only to relocate outside the US. Will America survive when all business and industry are located in another country, because the workers are cheap and the costs are minimal? What happened to be proud of buying something made in the USA? Very sad that so many people I know are either unemployed or going to be shortly due to this trend.
bd (anonymous) says…
What happened to Walmart's claim years ago about "american made" product they sell???
They are just as bad!
cowboy (anonymous) says…
proponents of these policies will talk about retraining opportunities. Bullsh!t , how many times can you build a new careeer. Most of this is not simply company survival but the corporate driven goal of increased earnings each quarter or year.
Our college students now should get four or five degrees to assure job options.
Kam_Fong_as_Chin_Ho (anonymous) says…
Ross Perot was nutty...but he was right.
just_another_bozo_on_this_bus (anonymous) says…
"I wonder if they offered existing employees the option to relocate with their jobs to the new plant?In Mexico?"
The housing costs would be much lower there-- although they would be one-room cardboard shanties with no indoor plumbing, electricity, heating or AC.
But, hey, the next time those laid-off American workers need a three-ring binder, it'll be 3 cents cheaper than when they were making them.
kmat (anonymous) says…
This is bad news, but those that are complaining can take some action. Don't shop at Payless. Don't buy Cardinal products. stop shopping at walmart!!!!!!!!!! Actually take a look at where something is made before you throw it in your cart. As long as everyone keeps demanding prices to be low and they aren't willing to pay more for American made product, then this trend will just continue.
The only upside, which will take a while, is that as these 3rd world countries start to grow because businesses relocate thier factories because of cheap labor, then employees in those countries start demanding higher pay. Starting to see this in some areas of China.
Take some action. Contact companies that move locations to MX or China. Boycott companies. Be picky with what you purchase. This is all driven by the consumer, which requires cheaper prices and loves to spend their money on worthless plastic crap from China and MX.
Godot (anonymous) says…
Welcome to membership in the global community.