DELPHI PACKARD ELECTRIC Company to vacate warehouse
The center serves Delphi facilities and customers across North America.
WARREN -- Delphi Packard Electric Systems will vacate its Warren Distribution Center on North River Road this year, moving operations to the rear of Plant 15 in Bazetta Township.
"Our intention is just to move the entire distribution center," said Ann Cornell Vickers, Delphi Packard's local senior communications manager.
It now occupies a facility at 655 N. River Road that Delphi Packard will leave when the lease expires, no later than Nov. 23.
She said the building has about 253,000 square feet and is mostly warehouse.
The move from there is part of the corporation's plan to get out of as many leased facilities as possible, and to move into areas where there is excess floor space, Cornell Vickers said.
"There will be an empty building once we vacate, when the lease is up," the spokeswoman said.
According to the Trumbull County auditor's office, the building is owned by River Road Investments Inc. and was built in 1987.
Return to its origin
The operation is, in effect, moving back to where it came from.
Plant 15 is part of the corporation's massive complex east of the distribution center, also on North River Road. It already has docks in place, because it's the same general area that the distribution center had occupied before moving to its current location.
Employees have known about the move for a year, and the move won't happen all at once, Cornell Vickers said. She said the company does not discuss specific employment figures for its facilities.
The Vindicator has been told, however, that there are 40 to 50 total hourly employees on two shifts, plus 25 to 30 salaried employees. Employees have been told the shutdown will happen in July; then, skilled trades will return the building to its original state and be done later in the year.
The distribution center serves Delphi facilities and customers across North America. It allows the corporation to keep on hand only the inventory it needs, and to have as little time as possible in the process of ordering and shipping.
Delphi Packard Electric Systems is Warren's largest income tax withholder.
The distribution center workers pay income tax to the city, which has been making budget cuts to address declining revenues. City Auditor David Griffing said he had not been aware the building would be emptied; the income tax impact was not immediately available from the city.
The building is in the LaBrae School District.
Not a precedent
This is not the first leased building in the Mahoning Valley that Delphi Packard is leaving behind.
In 2002, Delphi Packard cited cost savings and improved efficiency as its top reasons for relocating its world headquarters and 154 salaried employees from Belmont Avenue in Liberty Township to Warren. The company had been leasing office headquarters at 4944 Belmont Ave.
That year, the corporation consolidated or closed 51 manufacturing facilities, warehouses, supply in line sequencing centers and administrative offices to cut costs.
The parent company, Delphi Corp., said in December that it plans to eliminate 3,000 U.S. jobs this year, and some of the cuts will be in Ohio. Delphi Packard employs more than 5,000 in the Mahoning Valley and makes electrical wiring systems for vehicles.
Delphi Packard has been trimming its local hourly and salaried work force in recent years. It has about 3,900 workers who are members of the International Union of Electrical Workers and about 1,400 salaried workers.