Ceramo refitting for future; recovering from '03 tornado

JACKSON -- The tornado that blew through Jackson in summer 2003 dealt Ceramo Co. a devastating blow, but not a knock-out punch. The manufacturing building and two warehouses incurred several million dollars in damage, and production was slashed for about three weeks. Long-time customers were lost to competitors.

Ceramo is a 60-year-old company that manufactures and distributes up to 40 million red clay flowerpots a year, according to company president Vernon Kasten Jr. Headquartered in Jackson, Ceramo has a distribution center in Chicago and has customers in 21 states.

On Feb. 17, Ceramo laid off 17 full- and 60 part-time employees. About 40 full-time workers remain at the company that in the past has employed more than 100 workers. Kasten said the layoffs were permanent, but noted the 60 part-time workers were actually employed by a local worker staffing agency.

"We were hit hard by the tornado and put out of business for a long time," said Kasten. "Some of our former clients had to go to other suppliers, where they got comfortable doing business, so it's hard to get them back."

Kasten said the production problem initially caused by the tornado was complicated by insurance tangles. Reimbursement from an insurance company has not been fully paid, which resulted in Ceramo suing the company, said Kasten, adding that his company's insurance claim was the largest of all businesses in the city damaged by the tornado.

Kasten said other factors contributed to the layoffs -- increasing natural gas prices, downsizing production time from seven days a week to five, and the acquisition of new, more efficient equipment.

"There's still a lot of positives here," said Kasten. "We're back in production with our new shuttle kilns and some other new equipment that doesn't take as many people to operate.

"We are more efficient in many product opportunities with our new glazing system that makes glazed pottery in lots of different colors."

Kasten said that when the layoffs were announced, the state Department of Economic Development Rapid Response Team arrived to help former workers find employment. Also, laid-off workers were given severance pay.

"As far as I know the Rapid Response Team helped some former employees," said Kasten. "I was talking to a former employee and he told me many former employees have found work elsewhere."

Kasten said the company wanted to do everything it could to help former employees find work. He said he's glad that many were quick to find other employment.

Kasten said Ceramo is not closing, and the acquisition of new and improved manufacturing equipment proves the point. He said a business has to do the right things to succeed, and becoming more efficient is part of the plan.