CeraTech struggling in slow economy
Although it is down to only four employees, CeraTech Media, Inc., of Marion is still open and operating, according to Florence Sumner, the company president.
Sumner, contacted Monday at her home in Atlanta, Ga., said the economic downturn has hurt the company, prompting it to furlough a few employees, but she is confident the company will be back to full production soon.
"We had hoped for July 15," Sumner said regarding a timetable for calling back workers, "but I can't say that for sure."
Sumner confirmed that electricity and gas had been turned off at the plant. She said the gas was turned off due to a misunderstanding in billing. She said the power was off in the plant, but on in the office area. Turning it back on in the plant is not an option, she said, until the company is ready to ramp back up to full production.
Sumner said CeraTech is still a viable company and, in fact, she explained that it shipped out a small order to Delta Airlines last week and shipped what she characterized as a "major order of 34,000 pounds" of ceramic media to a longtime customer on Monday.
"This might get worse, but I am optimistic that we're going to get things turned around," Sumner added.
Issues about the company have arisen over the past several weeks, including CeraTech's failure to make payments on its loan from the City of Marion's Revolving Loan Fund.
Last summer, CeraTech applied for and received a City of Marion Revolving Loan Fund loan. At the time of application, the company reported having 25 employees and estimated annual receipts of more than $1 million. The lending, finalized Dec. 19, 2008, included the repackaging of a previous loan through the Revolving Loan Fund and some new additional cash equalling $207,886. Payments were scheduled to start in January 2009. To date, only one payment of $2,938 has been made. The company is six months behind on its payments, according to public records at city hall.
CeraTech also has a conventional loan through The Peoples Bank of Marion. The original note for $200,447, was issued Dec. 29, 2008, according to public records at the courthouse.
Employees who say they were laid off spoke on the condition of anonymity because they may want their jobs back. They told The Press that troubles starting surfacing in late winter and early spring when Atmos turned off the company's natural gas, which is used to fire kilns. Electricity to the plant was turned off in June, according to an employee.
Former employees say they were last paid on May 22. Two weeks later, on June 4, about a dozen workers were laid off. They said the company still owes them for work done during three weeks in May.
Florence Sumner says she doesn't think the company owes anyone for three weeks pay. She said there could be a few employees who are owed two weeks pay, but says that will be taken care of in the near future.
City Administrator Mark Bryant said no action has been taken to this point to collect the late loan payments due to the Revolving Loan Fund. Bryant said it is his understanding that William Sumner has been seeking new investors in the company. Florence Sumner confirmed that on Monday.
"We have spent a major portion of our lives and our finances on this company and we do not want to close it. That is why we are doing this equity offering now, trying to raise capital," she said, pointing out that her husband met earlier this week with potential new investors.
CeraTech makes ceramic media used by manufacturers of metal and steel products. The ceramic media, pieces which look like tiny cookies, are tumbled alongside hand tools and other metal products or parts to remove burs from them. The media polishes the metal.
Some of CeraTech's customers have been Delta Airlines, Daisy BB Guns, NASA, General Electric and Smith and Wesson among others.
Sumner said everything possible is being done to revive the company. As of Monday, she had not spoken with any local government nor economic development officials.
"We are working nonstop to get through this," Sumner added. "As are many other small companies."
This is an abbreviated version of an article that appeared in this week's printed edition
Marion moving on WiFi venture
Two or three times a week, Kelsey Simpson settles into a booth at her favorite downtown restaurant where she may spend an hour or so without even realizing how much time has passed. But it’s not the daily specials or dessert menu that keep the 20-year-old so distracted at Main Street Coffee Shop and Grill, it’s the free Internet access served a la carte each day.
Simpson has been taking advantage of the wireless Internet, or WiFi, hotspot for several months now, working on her associate’s degree through Madisonville Community College’s online degree program. If a proposal by city officials is given the green light by Marion City Council members later this month, Simpson and others like her could be surfing the Web at any Marion restaurant when August rolls around.
City Administrator Mark Bryant said the town is ready to move ahead with long-awaited plans to make free WiFi access available throughout Marion. Though residents like Simpson will undoubtedly reap the benefit of the service, the intent is to add WiFi as another marketing tool for Marion’s tourism commission.
“Anything and everything we can give them to play up our community, we want to give them,” Bryant said.
If okayed by the council at its July 20 meeting, Bryant said equipment could be in place and up and running within two weeks of that date. The city’s cost to install the digital subscriber line, or DSL, and necessary equipment would be about $20,000, but the rewards could be priceless.
“We want to make sure all of our restaurants have coverage,” Bryant said. “We want to get (tourists) into those places spending money.”
With each dollar spent at eateries from The Front Porch at the city’s southern limit to Darben Plaza on the north edge of town, not only do those Marion businesses benefit, the city earns three cents toward its tourism promotion from a citywide dining and lodging tax.
One restaurateur who already knows the rewards of offering free WiFi is Thom Hawthorne, who has offered the service at Marion Café and Thom’s Sweet Shoppe for years. Hawthorne said it draws people to his diner every day.
“Tons of people come in with their laptops,” he said. And they’re not just using the Internet, either. “They’re ordering breakfast, lunch and supper.”
Ironically, Simpson utilizes Hawthorne’s WiFi just a couple of doors down at the coffee shop. She uses the free feed because she cannot afford it at home. She used to drive 17 miles to get online at her parents’ home in rural Crittenden County before discovering the feed downtown.
Hawthorne has seen an increase in Internet traffic inside his restaurant for what he believes to be the same reason.
“So many people just cannot afford Internet service,” he said, adding that he does not mind others outside his doors taking advantage of the free WiFi. “A lot of people sit in their cars outside our window.”
Bryant said the notion of offering the service dates back a couple of years, when city officials became aware at a Kentucky League of Cities meeting of what other areas in the state had already begun. However, if plans move ahead, Marion would still become one of the first small towns in western Kentucky to offer the service.
Aside from tourists passing through to enjoy the rural scenery, Bryant said reliable hotspots along Main Street, particularly at the courthouse, could provide the business community with an asset for out-of-town visitors. Five-Star Food Mart, perhaps the busiest store in Marion from both its fuel and convenience store customers, would also be covered.
If implemented, all users of the WiFi service would automatically be directed to the city’s Web site as soon as they log on. This provides for endless amounts of marketing opportunity for both tourism and the city’s businesses, Hawthorne believes. And it’s an idea whose time has come, he adds.
“This is a serious tourism tool. I’m glad they’re doing this.”
Drive on to keep families cool in heat
With the heart of summer bearing down on the community, many families without adequate cooling systems in their homes are in need of fans.
Kathey Penn of Pennyrile Allied Community Services is spearheading a Fan Drive to Beat the Heat in Crittenden County.
“We are targeting elderly, people with disabilities and families with children,” Penn said. “We need to find about 25-30 fans.”
Heather Shewmaker of Starling Lane in Marion said last week that a fan provided by the PACS program has been a great asset during the recent hot weather. She said a thermometer in her bathroom read in the high 80s or above nearly every evening.
“I didn’t check it during the hottest part of the day,” she said.
Her husband, Lee, said he’s tried air conditioners in their manufactured home in the past, but each time they’ve not lasted very long.
“We try to stay gone during the hottest part of the day. I am usually at work, but (Heather) and kids are here,” he explained. “These trailers are like an oven in the summertime. When it’s 100 outside, it’s 120 in here.”
The demand for standing and window fans has increased with recent spikes in temperatures, Penn said. Her agency as well as the Cabinet for Families and Children have both received multiple requests for assistance.
Penn is asking the community to donate new fans or make monetary donations to help those in need. New fans cost about $20 and up, she said. She is looking for fans that are 20 inches in diameter or larger.
Fans may be taken to Farmers Bank or The Peoples Bank in downtown Marion. The banks have agreed to be a clearinghouse for the donations.
Penn said that many of the department stores in Marion carry new fans. She prefers to have new ones as opposed to used fans that might not be in good working order.
“PACS had six requests for fans a couple of weeks ago when it was so hot,” Penn said.
Penn may be contacted at the Crittenden County Courthouse PACS office at 965-4763.