Episode 1990
Keen's Departure: What It Means for West Coast Manufacturing
Keen Utility just pulled the plug on its Portland manufacturing facility, and honestly, it’s not the shocking twist we were hoping for in the plot of "Life in the West Coast." Eric G dives into the nitty-gritty of why this closure is more than just a corporate shuffle; it’s a head-scratcher reflecting the bigger picture of Portland’s rising costs and urban chaos. With Keen’s shift to Kentucky for a snazzier, more automated setup, he raises some eyebrows about what this means for the local job market and the whole “Made in USA” tag. It’s a classic case of businesses chasing greener pastures, while Portland’s own challenges seem to pile up like laundry on a Sunday afternoon. Let’s unpack this bumpy ride through the world of work boots and city politics—because if we can’t laugh, we might just cry!
This week, we’re diving into some pretty big news: Keen Utility has decided to close its manufacturing facility in Portland, Oregon. Now, why would they pull the plug on a local gem? Well, it seems like the winds of change are blowing through the economy, and not everyone is weathering the storm too well. I’m chatting about the current state of home improvement and how it’s affecting businesses like Keen, along with a peek into the struggles contractors are facing. So, whether you're a DIY aficionado or just curious about the latest trends, stick around as we unpack this development and what it means for all of us!
A significant shift in the landscape of home improvement manufacturing occurred this week with the announcement that Keen Utility has decided to close its manufacturing facility in Portland, Oregon. Eric G dives deep into the implications of this decision, exploring not only the immediate effects on local employment but also the broader economic trends that might have influenced Keen's move. He humorously notes that while Portland is known for its quirky culture and vibrant arts scene, the reality of operating a manufacturing facility there may not have lived up to the dream for Keen. From rising costs to logistical challenges, Eric paints a picture of a company caught between the ideals of local production and the realities of modern business.
As he elaborates on the economic landscape, Eric highlights that while places like Lowe’s report a spike in sales, the overall sentiment in the construction and home improvement sectors seems to be one of caution. Homeowners are opting for upkeep rather than major renovations, which leaves contractors in a bit of a bind. Are we witnessing a slow-motion repeat of the 2008 crash? Eric encourages listeners to be mindful when hiring contractors, emphasizing the importance of choosing those with a solid track record. With a mix of wit and wisdom, he reminds us that navigating this ever-changing market requires not just skill, but a keen sense of awareness.
Takeaways:
- Keen Utility's decision to close its Portland manufacturing facility reflects broader economic pressures affecting the home improvement sector.
- Eric G discusses how many homeowners are focusing on maintenance rather than big projects, hinting at a cautious consumer attitude.
- The podcast highlights the importance of hiring experienced contractors, especially in a tough economic climate where many are struggling.
- A recent Lowe's earnings report indicates some stability, but Eric warns that not all areas are thriving in the current market.
Keen Utility's recent decision to close its Portland manufacturing facility sends ripples through the community, sparking conversations about the broader implications for local economies and the work boot industry. Eric G dives deep into the heart of this issue, reflecting on his long-standing relationship with Keen Utility and how the shift in manufacturing strategies speaks volumes about the economic landscape on the West Coast. As a Portland resident, Eric shares firsthand experiences about the city’s rising operational costs and how businesses are forced to adapt, often at the expense of local jobs. The episode explores not just the closure of the factory but the nuances of the 'Made in USA' label, revealing the complexities behind what it truly means in today’s global marketplace.
Listeners will be taken on a journey through Eric’s memories of the Keen Utility factory, the people he’s met, and the community events that brought the brand to life. He contrasts Keen’s affordable work boots with other high-end brands, delving into the challenges of maintaining quality and manufacturing integrity when parts are sourced overseas. As he discusses the economic realities that led to this pivotal decision, Eric doesn’t shy away from acknowledging the decisions made by city officials that ultimately contribute to such business closures. This episode not only sheds light on Keen’s move but also serves as a microcosm of the struggles facing many cities grappling with safety, mismanagement, and high taxes, leaving listeners with a sense of urgency to reflect on the changes in their own communities.
Takeaways:
- Keen Utility's decision to close its Portland facility highlights the challenges of manufacturing in high-cost areas.
- The shift to Kentucky for Keen's manufacturing operations underscores a trend towards automation and cost efficiency in production.
- Portland's economic environment, including high taxes and crime, is pushing businesses to relocate to more favorable regions.
- The 'Made in USA' label is complicated by overseas production, raising questions about authenticity in manufacturing.
- Eric reflects on personal experiences with Keen boots, blending humor and critique about design flaws and company response.
- The episode dives deep into broader issues affecting urban centers like Portland and their impact on local economies.
Links referenced in this episode:
Companies mentioned in this episode:
- Monument Grills
- Keen Utility
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Mentioned in this episode:
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Transcript
Foreign.
Speaker B:The House with Eric G.
Speaker B:Your go to source for everything home improvement.
Speaker B:Whether you're a DIY enthusiast or just looking to make your space shine, Eric G.
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Speaker B:So grab your toolbox, put on your thinking cap, and let's get to work right here on around the House with.
Speaker A:Eric G.
Speaker A:Welcome to the Round the House show, the next generation of home improvement.
Speaker A:I'm Eric G.
Speaker A:Thanks for tuning in today.
Speaker A:This hour is brought to you by our friends at Monument Grills.
Speaker A:Check them out online for that next barbecue.
Speaker A:Do you need one for Memorial Day weekend?
Speaker A:Check them out@monumentgrills.com I'm going to put together for an upcoming episode my new MN Essence series, the 405.
Speaker A:I'm looking forward to this one.
Speaker A:Small, portable, powerful, all the latest in tech.
Speaker A:It's going to be a lot of fun.
Speaker A:Today is a special episode when I see something come up that didn't fit into the midweek special or didn't fit into this weekend show.
Speaker A:And as you can tell with my voice, I'm still getting over this rough cold I've had this week and it's been a rough one.
Speaker A:But I wanted to talk a little bit today here about what I'm seeing in our west coast cities.
Speaker A:I live in Portland, Oregon, and something just happened that I saw get announced this week that just made me shake my head and I saw it coming.
Speaker A:I used to have a strong partnership with Keen Utility.
Speaker A:I did.
Speaker A:I went to their vents.
Speaker A:They sent me down 15, 20 minutes away from my house to their factory.
Speaker A:40 minutes with traffic.
Speaker A:You know how that goes.
Speaker A:And I would go down there and show up, we'd do these events, we'd have a great time.
Speaker A:And they supplied me with a lot of boots over the years.
Speaker A:One thing that happened that I noticed a few years ago and I noted it in my head and I went, that's interesting.
Speaker A:Keen started shipping all of their shoes out of Kentucky, started coming out of the Midwest and I went, that's not good for Portland manufacturing because they did have a rather small manufacturing presence here in Portland, Oregon.
Speaker A:And they had the kind of Made in USA logo on their boots.
Speaker A:Were they really made in usa?
Speaker A:No.
Speaker A:Not compared to my Truman boots that are made down in Eugene, Oregon that I love.
Speaker A:Now those are not in comparison to Keen Utility because Keen Utility are a work boot that is an affordable work boot.
Speaker A:And I say that because they're 120 bucks versus the handmade, all made in USA.
Speaker A:Four to $600 boot down there.
Speaker A:So they're not in comparison that way.
Speaker A:We're talking custom versus a good quality work boot.
Speaker A:Now, the issues that I saw is all the parts were mostly made overseas, so they'd get these pieces made in overseas.
Speaker A:And since they were bonding pieces together, heating them up, fastening together and building the shoe in Portland, there was enough that they could call it Made in usa, even though the uppers and the lowers and all these other pieces were made overseas and they had a decent size facility there, but by no means was anywhere near half of the boots were made in Portland.
Speaker A:Now, you could see some that said Made in usa.
Speaker A:And those are the ones that they could bond together like that and build at that factory.
Speaker A:And they had probably 100 people working in this factory.
Speaker A:Great people.
Speaker A:I was there every year for years after years doing these things.
Speaker A:Now, Keene Utility has a big presence in downtown in the Pearl District.
Speaker A:They have a big.
Speaker A:Their big meeting space there for all their offices.
Speaker A:They've got the Keen store.
Speaker A:They've had a Portland institution here for a while.
Speaker A:I knew as soon as we saw that shipping facility open up there, I'm like, why would it make sense to make boots in one of the most expensive places in the country to make boots and ship them to a place that would be so much cheaper to make boots, which would be in Kentucky or in the Midwest, anywhere.
Speaker A:Sure enough, this week, those hundred jobs went away and they went all the way out to Kentucky where they're putting in a bigger manufacturing facility with more automation, less people, and they could build more boots.
Speaker A:Now is that good for Keen and the Made in USA stuff?
Speaker A:Sure it is.
Speaker A:That's.
Speaker A:I don't blame them a bit for that.
Speaker A:Have I had some problems with Keen?
Speaker A:Yeah, I did.
Speaker A:I had one of their shoes that, that I was wearing walking across my floor and I stumbled a little bit and my foot bent.
Speaker A:Normally, if you were skinning down, let's say I dropped down like I was getting into a track position.
Speaker A:Drop my knee down on the ground like you were starting off in a track position.
Speaker A:When that happened, it dislocated my toes because the carbon fiber toe that pinched my foot and dislocated toes out the back of my foot.
Speaker A:Yeah, that hurt.
Speaker A:I had a boot and there was a lot going on there with that.
Speaker A:Did Keane respond when I came back to him?
Speaker A:Yeah, I got a phone call after I called up my rep, after I said, why aren't you guys even look into this?
Speaker A:People are going to get hurt.
Speaker A:Their CEO calls me, had a Nice conversation.
Speaker A:Only because they knew I was going to talk about it and they said they'd get back to me with what they found.
Speaker A:And after that it was crickets.
Speaker A:So that's my problem with Keen Utility.
Speaker A:In full disclosure, do I still wear their boots?
Speaker A:Yeah, I have a dozen pair of them.
Speaker A:Will I change over to another brand for a work boot?
Speaker A:Yeah, when these wear out and they get replaced.
Speaker A:You're right.
Speaker A:I'm not going to waste these boots because these boots are good boots.
Speaker A:Now the ones that hurt my foot, yeah, I'm not wearing those out because I'm not going to do it again.
Speaker A:That's a design flaw in my opinion and I'm not going to get hurt again wearing that same shoe when all I did was bend over.
Speaker A:When I sit there and have to reach down to get something or if I stumbled again, I was carrying a two by six and I tripped on the foot of a table saw when I was carrying it through the shop.
Speaker A:Simple thing.
Speaker A:But the bigger story here is when we have cities like Portland, which I don't live in the city, I live outside of a much more sensible community.
Speaker A:When we see the crime, the mismanagement of city resources, when you see the people frustrated trying to fix city government and the high taxes and they wonder why people like Keen Utility are shutting down and going to a place that has much more sensible and safer places for their people to work, I get it.
Speaker A:I wake up this morning on Thursday morning here on the 22nd and I turn the TV on.
Speaker A:What do I see?
Speaker A:Yup, City of Portland's gonna take two more million dollars out of the police budget to fund parks.
Speaker A:People aren't going to the parks because they're not safe.
Speaker A:So let's take a little bit more money out of the police department and put people in the parks for programs where the kids could be at risk because of the lack of police funding.
Speaker A:Here's my little rant for the day.
Speaker A:This is why we have these problems in cities like Portland.
Speaker A:This is why people are moving out of Portland for safer homes.
Speaker A:This is why we see manufacturing jobs for these are boots made for the construction worker, for the trades, for the warehouse workers, the restaurant workers.
Speaker A:We've got some serious problems we got to fix.
Speaker A:And it's going to take cities like Portland having to crash and burn the whole downtown core.
Speaker A:What do they have a 60% occupancy rate?
Speaker A:They are on their road to Detroit in their bad day.
Speaker A:Detroit's cleaning itself up.
Speaker A:It's looking really good.
Speaker A:But cities like Portland Cities like Seattle, cities like San Francisco still have not figured out that what they're doing is chasing businesses away and it's going to be a ghost town.
Speaker A:How are they going to fix it?
Speaker A:Put in people that understand how to run a city, people that put the residents first, not their social programs.
Speaker A:And three, they're going to have to convert all of these spaces and nobody wants to go visit into residential housing or something because there are going to be retail stores everywhere that are empty.
Speaker A:So that's going to create maybe more housing needs downtown and maybe that'll bring things back.
Speaker A:But these are some of the problems we are seeing.
Speaker A:All right, everybody, I'm gonna let you go on this update.
Speaker A:I just saw this and I had to put a rant out because I'm just shaking my head.
Speaker A:People are shocked in Portland and I'm like, we all saw it coming.
Speaker A:It's the most expensive place to do business.
Speaker A:And they wonder why they're leaving.
Speaker A:I feel bad for the residents of Portland, but then I don't.
Speaker A:The people of Portland voted in what they're getting.
Speaker A:This is what they asked for and this is what they're getting.
Speaker A:And places like Kentucky, places like Nevada, places across the country, whether it be Texas or Florida or anywhere else, they're adding these companies, they're adding these businesses while the other ones, they're losing out and they're losing the tax dollars and blue collar workforce that they'll pay for later.
Speaker A:All right, guys, I gotta go.
Speaker A:My throat is gonna start coughing any minute here and that's not gonna be a good thing.
Speaker A:I'm Eric G.
Speaker A:Thanks for tuning into around the House on this breaking news moment.
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