The economic mortician

Atcon’s state-of-the-art plywood plant closed
DAVID SHIPLEY

Telegraph-Journal
Published Saturday March 15th, 2008
Appeared on page C1

New Brunswick’s weakened manufacturing industry has suffered yet another blow. The privately-owned Atcon Group announced Friday it is temporarily idling its state-of-the-art plywood plant in Miramichi, leaving 100 people out of work. It is the second plant closure in three days in Northern New Brunswick. On Wednesday, Olin Corp. announced the permanent closure of its two chemical plants in Dalhousie, leaving 50 employees jobless.

David Shipley’s got himself a Macabre assignment these days. Doing the post-mortems on plant closures in New Brunswick. He cuts into the cadaver and finds the cause of death. I just hope that there are two sets of people reading. One, the companies – hopefully they will learn what is killing these firms and make changes to their diet and lifestyle and two, the government – hopefully it will learn what changes need to be made to the environment – that is things under its control – to help keep these companies from dying. Power costs, wood costs, etc. are all directly influenced by government policy.

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0 Responses to The economic mortician

  1. Anonymous says:

    I am getting tired of businesses that are unable to compete turning their troubles into political arguements.

    Surely the US housing industry decline is a far more significant factor in this closure than an 8-10% increase in energy costs; an increase many manufacturers experienced as world energy prices soared.

    If this is just politics, then fine, let it go. But if our NB businesses leaders honestly beleive their global competitiveness is entirely in the hands of their provincial government, get ready for a wave of business obituaries!

  2. nbt says:

    “[…]government – hopefully it will learn what changes need to be made to the environment – that is things under its control – to help keep these companies from dying. Power costs, wood costs, etc. are all directly influenced by government policy.”

    The above statement is the equivalent to saying that green house gases [GHGs] can be curbed by applying suntan lotion every day. Don’t get me wrong, it may make sense to your everyday Paris Hilton type economist, but in reality, it’s so uncool.