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The cost of the commute
by Susan Mires
Sunday, June 15, 2008
As shifts change and offices start to close for the day, commuter traffic begins to exit Maryville and file south on U.S. Highway 71 on Tuesday evening.  Gasoline near $4 per gallons is impacting workers across Northwest Missouri who live in outlying communities and must drive daily to jobs.

KIM MORRIS/ST. JOSEPH NEWS-PRESS

As shifts change and offices start to close for the day, commuter traffic begins to exit Maryville and file south on U.S. Highway 71 on Tuesday evening. Gasoline near $4 per gallons is impacting workers across Northwest Missouri who live in outlying communities and must drive daily to jobs.

Fewer pickups show up in the parking lot at Hemisphere GPS in Hiawatha, Kan. They’ve been replaced by smaller cars and even motorcycles.

This is the world where gas costs $3.87 per gallon.

“Everybody’s feeling it,” said Jeff Ferrar, channel marketing manager for Hemisphere.

Of the 50 people who work at the facility manufacturing and servicing precision guidance equipment for agriculture, about half live outside of Hiawatha, Mr. Ferrar said.

So far, the company has not lost any employees who decided it was too expensive to drive to work, but workers and the company are making adjustments.

“The $4 mark seems to be where it starts affecting life,” Mr. Ferrar said.

Gas prices have reached levels that hurt so much, workers across the region are having trouble getting to the job. Companies are doing what they can to help.

About five years ago, Hemisphere switched to a four-day week in which workers punch in for four 10-hour days, taking Fridays off.

“That amounts to a 20 percent savings on transportation costs,” Mr. Ferrar said. “At the time, that wasn’t why we were doing it, but it’s really paid off.”

Other workers have been forced to make changes.

“Professionals are not as open to traveling to Kansas City. They prefer to stay closer to home because of the price of gas,” said Linda Obermier, manager of Alpha Staffing.

Alpha Staffing places workers in professional and manufacturing positions. Ms. Obermier said she works with applicants to place them at jobs close to where they live if possible, although some have turned down jobs because of the commuting distance.

“Overall, people are dealing with it because they have to work,” she said.

Businesses are well aware that gas prices are hampering workers.

“The companies that we work with have been very good with folks and try to give them raises,” Ms. Obermier said.

Boehringer-Ingelheim Vetmedica employs more than 600 people in St. Joseph and commuting costs are a concern, said Dan Nowalk, vice president of human resources and communiciation.

“We want to be as understanding as possible,” he said.

Possible changes in work shifts will be discussed at an executive meeting in July. But because Boehringer’s production shifts operate 24 hours a day, it may be impossible to make significant changes, he said.

Sometimes, though, the commute just isn’t worth it. Mary Gilmore lives in Troy, Kan., and used to work in St. Joseph.

“I was putting money in the tank and that was it,” she said.

Fuel charges are affecting workers in other ways. Sandy Messa works as a nurse at Heartland Health. The drive to work is easily managed, but taking the children to their grandparents in Agency, Mo., who provide childcare adds to the cost. She recently switched to a smaller vehicle.

“If you leave something at home, you don’t go back to get it,” Ms. Messa said.

WireCo World Group moved its headquarters from St. Joseph to Kansas City last year. At the time, the company adjusted workers wages to account for the commuting costs, said David Hornaday, senior vice president of corporate administration. Escalating gas prices have led to other changes.

“We have more of our staff starting to carpool,” Mr. Hornaday said. “We’ve tried to assist with that.”

The average commute for a person who lives and works in St. Joseph is 12 miles, according to the U.S. Census. At $3.87 per gallon in a vehicle that gets 20 miles per gallon, that amounts to $1,161 a year. When gas was $1.50 per gallon, the annual cost would have been only $450 per year.

Those kind of figures make people think twice about their lifestyles, said Ted Allison, chief executive officer of the St. Joseph Area Chamber of Commerce.

“A lot of our work force, in particular high wage positions, choose to live elsewhere,” he said. “The higher it costs to commute, the more likely families are to reconsider that.”

That could lead to more people living in St. Joseph and recycling their paychecks in the community, Mr. Allison said.

Higher gas prices could have other positive effects on the local economy. WireCo produces wire rope product that is used in drilling and mining industries.

“It’s pretty active out there,” Mr. Hornaday said.

Hemisphere’s GPS guided products help farmers precisely apply fertilizer, seed and chemicals. Farmers are looking for ways to cut fuel and other costs and Mr. Ferrar said the guidance systems can pay off.

“We’re doing very well,” he said. “Because of high input costs, we can show the grower a good return on invesment.”

The Department of Energy forecast last week that gas prices would level out at a national average of $4.15 per gallon. National prices are expected to stay above $4 for the rest of the year.

Mr. Allison said he expects some correction in the market, but workers and business will have to adapt.

“Long term, it’s going to cost more to commute,” he said.

Business editor Susan Mires can be reached

at susanm@npgco.com.

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Posted by RH on June 16, 2008 at 9:35 a.m. (Suggest removal)

There aren't alot of professional level jobs in St. Joseph as there only seem to be newer restaurants or retail shops opening in St. Joseph vs companies that tailor to those with degrees and/or pay higher wages. Mr. Allison and others are delusional if they think people will not move to Kansas City to take jobs vs just finding something in St. Joe to cut out commuting expenses. Wish it were that easy but those who are qualified for higher paying jobs that can mean a 30% pay increase + may choose to move vs not taking it. Buying a house in many areas of Kansas City isn't that much more expensive than in St. Joe. I drove back and forth from St. Joe to KC for a few years but determined I could not afford to continue the drive nor work for the wages in St. Joe and I moved to Kansas City. It's unfortunate that I had to do this, but there are a ton of people I see on a regular basis in the part of the city I live in who are former St. Joe residents and moved due to lack of opportunities in St. Joe for a true career. Until the powers that be recruit and maintain professional corporations that aren't pork plants, restaurants and retail shops, St. Joe is going to keep bleeding and KC will continue getting what St. Joe has "cast off".

Posted by njones60 on June 16, 2008 at 12:06 p.m. (Suggest removal)

I have a great job in KC and earn at least twice what I could earn in St. Joe. I've stayed in St. Joe because I want to be near my family and because I thought the cost of living was cheaper. I have recently been looking for a new home and I am appalled at the price of housing in St. Joe. I can buy a 4 bedroom, 3 bath home with a 3 car attached garage in Independence for less than $200,000. I can't find a similar home in St. Joe for less than $275,000. Why pay $75,000 more AND commute 100 miles a day?! I don't want to leave my hometown, but with the housing market in St. Joe, plus the cost to commute, it's starting to look like I would be making an irresponsible decision if I chose to stay.

Posted by lithoguy on June 18, 2008 at 1:06 p.m. (Suggest removal)

I have to agree with you njones60. I have been commuting to Kansas City for about 15 months now. Initially, it was out of necessity as I could not find employment in St. Joseph that pays anything close to what I am making in KC. Now I am doing it out of preference. Great job, great pay, great area. I definately want to move down here but I first must sell my house. That will not be an easy thing to do either.

RH, you are right about the availability of certain types of jobs. There just are not very many upper management or executive jobs available in St. Joseph. It forces those of us with those particular types of qualifications to look elsewhere. I do like St. Joseph and the neighborhood that I live in but I can definately see myself moving south in the near future. The cost of gas and the wear and tear on my car and me just is not worth it.

Posted by njones60 on June 18, 2008 at 1:50 p.m. (Suggest removal)

Good luck on the house sale lithoguy. Judging by the prices of homes I've been shopping, the market hasn't taken a real downturn in St. Joe, so you should be okay. I'm almost 9 years into this job and I will begrudginly admit that the rising gas prices aren't as bad as I thought they might be. As I said, I commute 100 miles a day. I fill up two to three times a week. Each fill up is about $10 higher than it was a year or so ago. That's an average of about $25 more a week or $100 or so a month. Yes, I'd rather have that extra $100 to take my kids to dinner and a movie (because that's about what it costs for the 5 of us) and yes I'm lucky that I have a good job (thus the commute) that I can absorb that without too much trouble. But those that work 5 miles from their home and only fill up to a half tank so the car isn't as heavy and will get better gas mileage, need to actually do the math. I hope gas prices go down, but even more so, I wish the cost of groceries and daycare would quit rising. That's where I'm taking the biggest hit!!


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