NC direct mailing company IWCO Direct officials say 380 workers are losing their jobs because a plant that develops direct mail advertising in a small North Carolina town is closing.
Officials handed out notices Thursday at IWCO Direct in the Wilson County town of Elm City. The workers earned between $9 and $25 an hour and were given 60 days severance pay.
The company's Debora Haskel said the plant was closing because fewer companies are sending brochures in the ailing economy. Haskel said the closing "is completely market driven.
"Credit card marketers aren't making as many offers as they used to," Haskel said. "They are not making as many (direct mail) loan offers."
This is a big difference from cutting back a shift or eliminating overtime. This is a permanent closing of a factory. It will not come back.
Doesn't it seem like direct mailing should be done on a regional basis anyway? The "IWCO said it is moving its operations to Minnesota and continues to send 200 million mailings a month." It seems more efficient to me to keep a spread of regional mailing centers to reduce logistics costs. This is how Netflix does it.
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