Gates Manufacturing, the area’s largest employer, is celebrating its 40th year in Iola.
That’s a long enough time to span two, sometimes three, generations of workers.
To help mark the company’s anniversary, Iola Mayor Joel Wicoff has designated today as Gates Day.
The plant also is giving tours from 1 to 4 this afternoon.
Employment stands at 500, according to Teri Porter, human resources manager at the plant. It’s been as high as 800.
The company manufactures industrial hoses used in myriad ways, including hydraulic hose used on heavy farm and road construction equipment as well as pole-built hose that is used in extracting oil.
So right there, you can see why an expansion planned for last summer is still on hold and employment is down 150 compared to February 2015.
“A downturn in road construction projects, a slow economy that may affect agriculture, or a stagnant oil and natural gas market, all directly affect us,” said Scott Strycker, plant manager.
“A lot of the industries where our hydraulic hose is necessary to their equipment are either cutting back on production or waiting longer to buy new equipment,” he said. “A slowdown in building new schools or roads hits our bottom line. It all ties back to us.”
The 82,000 square-foot expansion “will be on the back burner,” Stryker said, at the very least until the oil business “turns around.”
Tagged at $17 million, the expansion is to accommodate a new line of oil and gas hose products.
WHEN GATES opened in 1976, Iola was an industrial mecca.
Berg Manufacturing had on its payroll 380 employees; Thompson Poultry, 200; IMP Boats, 110; Quality Packaging, 150, and Walton Foundry, 45.
The gears started turning in 1974 when Gates officials came scouting and found the local industrial climate a good fit.
“We looked for a community where an investment of this caliber would be a good gamble. We chose Iola,” said Charles Gates, president and CEO of Gates Rubber Company, during the June 8, 1976 dedication ceremonies.
Iola Industries, a local business development group, sold Gates 97 acres at the site of the old Lehigh Cement Company, which went out of business in 1971.
