Energizer Holdings occupies a space in this warehouse, seen in November 2019, near Interstate 65 on Franklin’s east side.
Daily Journal File Photo
Energizer Holdings is relocating their packaging operations facility from Franklin, but local officials say the plant is not shutting down.
The St. Louis-based battery and portable lighting production company released a statement Monday announcing the relocation of their packaging operations department from their Franklin facility to another out-of-state location. Packaging operations would cease in the first half of 2024, according to the statement from an Energizer Holdings spokesperson.
The Fortune 500 company is not shutting down the Franklin plant, as their lease on the building lasts until approximately 2035, but the layoffs will affect approximately 100 individuals, Franklin Mayor Steve Barnett said.
“I’m hearing that they are still going to have about 40 or 50 employed for now,” said Barnett. “They’re looking in the future to employ more there with a different strategy. Energizer is not closing but restructuring to better meet their needs; this facility will still be open.”
Although the packing side of the Bartram Parkway plant is relocating, the distribution side will be remain. Energizer is looking at re-purposing the facility to better suit the company’s needs, which will most likely add additional jobs as they redevelop that space, Barnett said.
“Regardless of how they use it, Sunbeam Development Corp. is the building owner and will continue paying taxes which financially benefits the city of Franklin’s economy,” he said. “They have the lease — they are not going to go anywhere.”
An Energizer Holdings spokesperson said Franklin will continue to serve as the central distribution center for their U.S. battery and lights business. They have also given employees information on severance and job placement assistance, the spokesperson said.
“Over the next several months, we will continue to focus on ensuring our colleagues have the resources they need,” the spokesperson said.
The Franklin City Council unanimously approved the tax abatements for Energizer Manufacturing, Inc., and building owner Sunbeam Development, back in November 2019, which included a $58.5 million tax break on personal property and a $4.1 million tax break on real property for Energizer. The abatement remains in effect despite the company’s planned layoffs and restructuring, Barnett said.
Barnett says when larger companies come to Franklin, they are sometimes given tax abatements. It is a common misconception that these tax abatements mean that these companies are not paying taxes. The reality is these tax abatements saves them a little bit of money at a time, he said.
For instance, about $309,000 in taxes were paid by Sunbeam on the building, even after the tax abatement. As the tax abatement fades in next year, they will pay closer to $498,000, he said.
“Then the following year, it’ll be about $600,000. Then it’s going to be about $750,000,” Barnett said.
When it gets towards the end of the 10-year abatement, Sunbeam will bring in between $1 to $1.5 million each year, which makes a significant impact on the local economy, he said.
Energizer also committed to paying a 2% economic impact fee annually, with the money being used for projects around Franklin, according to reports from November 2019.
Barnett said that he is very concerned about the people being laid off, but he is also confident that they will find another place to work, and that the community can help them with that objective.
“Our residents can work with WorkOne to expand their job search and skills,” Barnett said. “I believe they are partnering with Energizer to assist Energizer employees who are affected by these changes.”
Other nearby employment agencies that can assist the afflicted personnel are Elwood Staffing and Express Employment in Greenwood.
Dana Monson, community development specialist for the Franklin Development Corporation, says that there are a number of businesses in the community that are increasing their employment and a plethora of opportunities in the area.
“We are actively working with local manufacturers and logistics firms who are looking to expand,” Monson said.
Monson encouraged those looking for a job to browse local opportunities online utilizing job search sites like Indeed. They can also reach out to Aspire Johnson County or the Franklin Chamber of Commerce.
There is also the possibility that there would be an opportunity for employees to return to Energizer Holdings after they re-purpose their packaging line, Barnett said.
“There would be an opportunity for some people. I don’t know as of yet what they are going to re-purpose it for, but I am sure that there would be opportunities for anybody that wanted to come back and work there. Energizer is a good company,” he said.
Not all of the layoffs affect people who live in the city of Franklin, as the city draws a decent amount of their work force from neighboring communities like Columbus, Shelbyville and Martinsville because of the major highways that run through Franklin, Barnett said.
Energizer’s alterations is a piece of the company’s strategic plan, Monson added. She believes that Energizer will be here for a long time and will continue to have a positive impact on other Franklin businesses and the local economy.
“In the short term, we have to be very understanding that yes, the reality is there were going to be some folks that are going to be temporarily unemployed,” Monson said. “We obviously never want to see that happen if we can help it. We as a community will obviously rally around and help to support them; help them find the resources that they need to get themselves where they need to be once again. This is a downturn, but hopefully they can find an even better place and an even better position to keep them moving forward.”
Monson also said the technology in a company like Energizer is undergoing a lot of change at this time and is becoming increasingly fluid. With artificial intelligence, we will see a lot of changes like this in the future but it is also a sign of businesses evolving, she said.
Barnett is saddened by the loss of Energizer jobs, but he does see Franklin having a bright future that offers residents stable employment within a strong economy.
“We value every single business, and we value every single business that would want to do things different — to try to rearrange their company and make things more profitable for their company,” Barnett said. “We’re all onboard with helping them.”
