Des Moines Register
11-06-06
Small businesses shake dependency on Maytag
Whirlpool merger brings big changes
By Bonnie Harris
The Des Moines Register
NEWTON, Iowa -- For 16 years, Cindy Bruner got most of her business from
Maytag.
Her graphic design firm, Art a la Carte, printed brochures, manuals and training
materials in as many as 13 languages for four of the appliance company's
product lines. Because of Maytag, she and co-owner Cathy Rickers were able to
expand their company from two employees to more than 12.
But now they're reinventing themselves because of Maytag, as are other small
businesses that relied heavily on the appliance maker -- acquired in March by
Michigan-based Whirlpool.
"It took some real soul searching to figure out how we were going to replace that
business and keep growing," Bruner said. "We just knew we weren't going to let
the Maytag situation bring us down."
Immediately after Whirlpool announced it would close the plant and headquarters
in Newton and move the operations to Benton Harbor, Mich., Bruner and Rickers
hired five employees to begin their "diversification process." They added a
multimedia component to their print product offerings and began to attract clients
with a greater geographic reach.
Their company now designs Web sites and develops updates as needed by each
client. And it has a menu of "a la carte" services that range from creating logos to
coming up with a new corporate brand.
Where they once had about 20 other clients in addition to Maytag, Bruner said
they have more than twice that.
"Our customer base is different now, but that's what we want," Bruner said. "We
changed the way we think about ourselves. We're not just a design company.
We're an extension of the clients we serve."
As Maytag's white-collar jobs shrink -- the next wave of cuts is expected soon -the company's former suppliers and other business owners are learning how to
switch gears and diversify.
That approach will make the difference for businesses in Newton, said Ken
Stone, a retail consultant in Ames, Iowa.
"And attitude is especially important to small businesses, which absolutely must
face the facts and think of other strategies they can offer," Stone said. "Certainly
a lot of our small-business people are very adaptable, and I never cease to be
amazed at their ability to bounce back."
David Swenson, an Iowa State University economist, said the loss of jobs will
multiply in Newton, beginning with those businesses that had a direct relationship
with Maytag and extending to the community level by way of cutbacks in
spending and sales.
"I call it the Main Street effect, and it has to happen," Swenson said. "Once you
lose those jobs ... that loss of labor has to multiply itself through the economy."
Bill Johnson, who owns Meisner Electric, said he already has experienced that
trickle-down effect in his business. Service calls are down because fewer dollars
are being spent on construction additions or luxury purchases that require
electrical work, he said.
"Those calls don't come in anymore," said Johnson, whose company once did a
large amount of work for Maytag.
Johnson said he has adjusted to the change by going after jobs in a broader
geographical market. He also was able to land a $2.5 million contract with the
Iowa Speedway, which will have its inaugural race next year.
With more hotels, restaurants and other development expected around the
racetrack, Johnson hopes his 80-employee company will continue to grow.