Misty Harbor’s closure in Humboldt outlines need for qualified labor in Iowa, Reynolds tells business leaders
In FD visit, governor talks about Future Ready Iowa
Misty Harbor, a Fort Dodge-based company that manufactures pontoon boats, recently closed its Humboldt plant less than 10 months after opening there because it had a difficult time finding and retaining qualified labor, according to Tom Christy, vice president of Misty Harbor.
That labor challenge outlines a problem experienced by many employers in Iowa.
It’s a topic Iowa Gov. Kim Reynolds highlighted during the Future Ready Iowa Regional Summit held at the east campus of Iowa Central Community College, 2031 Quail Ave., on Monday.
Later, Reynolds toured Misty Harbor’s plant on the west side of Fort Dodge, 228 Kenyon Road.
“There’s not a day goes by that I don’t have an employer, job creator, business tell me that their business is growing and are excited about the growth — they just need people,” Reynolds said to a crowd of about 50 people, which included economic developers, business owners and educators. “It’s the grassroots vision, energy and commitment that are going to be critical for us achieving our goal of having 70 percent of Iowans in the workforce have either education or training beyond high school by the year 2025.”
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Reynolds, who is being challenged for the office of governor by Democratic businessman Fred Hubbell and Libertarian Jake Porter, touted the Future Ready Iowa Act. The Future Ready Iowa initiative aims to help employers like Misty Harbor find the skilled workers they need to grow.
She said about $4 million in funding is in place to support the Future Ready Iowa Act this year.
“But we know it will require significant new dollars for the 2019-20 year,” Reynolds, a Republican, said. “That’s a top priority and we are going to make that happen next legislative session. I believe with unanimous support we have a Legislature that will make that happen as well. It’s especially important as we launch the Future Ready Iowa Last Dollar scholarships, which is part of the Future Ready Iowa initiative.”
She said the scholarships are for new high school graduates and adults already out in the world.
“The scholarship will cover the cost of tuition after federal and state aid, up to a two-year degree for high-demand jobs like advanced manufacturing, IT and health care,” Reynolds said. “It also includes shorter-term education and training for vocational programs such as practical nursing or welding technology for faster entry into the workforce.”
She added, “What we have seen with young people and adults going back, if we can help them complete something, it really builds their confidence and they are even more likely to want to advance in their careers. The sooner we can help them find success and find where their passion is, that’s going to help them continue to advance in their career.”
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Despite the closure of the Humboldt facility, John Jergens, president of Misty Harbor, said business remains strong.
In fact, the company is exploring the possibility of expanding the Fort Dodge site and opening a facility out of state.
“An increase in operational efficiencies and specialized manpower are required to meet the continued growing demand for Misty Harbor products,” Christy and Jergens said in a joint written statement on Monday. “An exploration of future expansion opportunities in Elkhart, Indiana, which has synergies with both common marine industry suppliers as well as sister companies to The Marine Group (Misty Harbor), is underway as well as potential growth and expansion of the Fort Dodge main manufacturing facility.”
Jergens and Christy both worked for Electrolux, a washer-drier factory in located in Webster City, for about 15 years. When Electrolux closed in the spring of 2011, the two found a new opportunity at Misty Harbor and took ownership with business partner George Thomas, of Indiana, in the spring of 2017.
Misty Harbor employs 175 people.
It employed about 40 in Humboldt.
Jergens said the company retained about half of its Humboldt workers. Those employees now work in Fort Dodge.
He said the company will hire and train its workers, but some level of education and experience is preferred.
The company uses a lot of aluminum to build its boats and, as a result, they employ dozens of welders, Jergens said.
“Welding does take some training and skill set,” he said. “Most people come with experience or education, but we will train.”
Reynolds told business leaders at Misty Harbor during her tour Monday that Future Ready Iowa will continue its goal in developing Iowa’s workforce.
“We are focused on getting them the skills they need and letting them know what’s here,” she said.