http://www.timesunion.com

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Callaway golf ball factory to close
118 employees to lose jobs when plant is shuttered at the end of July; most of the work is going to China

By CHRIS CHURCHILL, Business writer
First published: Friday, May 30, 2008

GLOVERSVILLE -- Callaway Golf Co. on Thursday said it will close its ball factory here, putting 118 employees out of work.
     
Michele Szynal, a spokesperson for the California company, said the Route 29 factory is scheduled to close July 31, and much of its production will be shifted to China.
"Over 50 percent of our sales and 50 percent of our profits come from overseas," Szynal said, "and we've determined that manufacturing closer to where our products are being shipped makes financial sense."
The factory opened in Crossroads Industrial Park in 1989 as Spaulding Sports Worldwide Inc.
The industrial park's first tenant, it was considered a victory at the time for Gloversville and Fulton County. Officials say the company spawned additional growth.
"Economic development really took off after that," said Lisa McCoy, marketing director for the Fulton County Economic Development Corp. "They were a name for us. We could say, 'Look, Spaulding's coming here. You should come, too.' "
McCoy said Empire Zone tax benefits, along with the park's low electricity costs, helped lure Spaulding to Gloversville, a city of 15,000 people about 35 miles northwest of Schenectady. She said the benefits have since expired, though she was unsure exactly when.
Though Callaway's Szynal declined to disclose the pay rate for workers at the factory, the 118 lost positions largely are considered quality manufacturing jobs, and they may be difficult to replace in an area with employment needs.
The April jobless rate in Fulton County was 6.3 percent, higher than the statewide rate of 4.6 percent.
"The economy here is in pretty bad shape," said Donald Young, owner of Grumpy's Bargain Mart & Novelty Nook in Gloversville, who expressed disappointment at the Callaway shutdown. "There's no work around here, really."
It's unclear what Callaway, which acquired the factory in 2003, will do with the 70,000-square-foot building.
Headquartered in Carlsbad, Calif., publicly traded Callaway (NYSE: ELY) reported 2007 net income of $54.6 million on sales of $1.12 billion. Sales were up 10 percent from the previous year and net income more than doubled.
Despite the year's success, Callaway warned in its 2007 annual report that growth in the golf ball market is limited because "there has not been any material increase in the number of golfers worldwide in over five years."
The report also cites increased competition and costs in the golf ball market.
Callaway manufactures golf clubs and golf balls, and sells golf accessories under the Callaway Golf, Top-Flite, Odyssey and Ben Hogan brands.
Some of the Gloversville work will be shifted to Chicopee, Mass., where the company's ball production is concentrated and where it has nearly 900,000 square feet of factory, warehouse and office space.
Leo Rosales, a spokesman for the state Department of Labor, said Callaway on Thursday notified state officials of the impending closure in Gloversville.
He said the Labor Department will offer to provide training and assistance to Callaway's employees.
Workers might be eligible for added training and unemployment insurance benefits under the Trade Adjustment Assistance program, which aids employees harmed by the movement of jobs to overseas locations, Rosales said. Churchill can be reached at 454-5442 or by e-mail at cchurchill@timesunion.com.

Another company moves to China to maximize their profits by taking advantage of cheap labor.

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"Over 50 percent of our sales and 50 percent of our profits come from overseas," Szynal said

50% of our sales ... come from Chinese exporters selling the product back to the United States at places like WalMart, Target and KMart.

I can't believe with the poverty, political structure of China that there are more golfers (equaling more profits) in China and Asia than there are in the US.

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He said the Labor Department will offer to provide training and assistance to Callaway's employees.
Workers might be eligible for added training and unemployment insurance benefits under the Trade Adjustment Assistance program, which aids employees harmed by the movement of jobs to overseas locations, Rosales said.

.....and who pays for this?
http://www.doleta.gov/tradeact/2002act_index.cfm

they keep open the plant in Taxachussets though. See what that there says about how hard it is to make a go of it in the great state of New York for a company. It is officially worse than Taxachussets now.  

Yup, the biggest thing that I got from this is not only is another company pulling out of the US, and out of NYS, but they decided that it's better to run business in Massachusetts than it is in NY.

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50% of our sales ... come from Chinese exporters selling the product back to the United States at places like WalMart, Target and KMart.

MT, you hit this one right on the head.

And I believe thaqt it is better to run a business in almost any state but NYS. Oh heck....it's obviously better to run a business in another country than in any state!!! But when any private company looks at NYS and see that the public sector jobs are the majority of jobs, they run!!!

http://www.dailygazette.com

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We cant afford the greens fees or the trip to get there.....dear dear dear....what will happen to us.....it's just like paying $5.00/gal gas for our transportation and still spending upwards of $30.00 or more for NASCAR crap to wear with other folks names and numbers on them......I dont get it.....