Kearney Powermate Portable Generator Plant Closes

Kearney, NE employees have been blind-sided by the closing March 21, 2008 of the Kearney Powermate Corp. plant, that made portable generators, due to bankruptcy. These generators made the difference for many when Katrina and other disasters hit around the country and around the world.

The Powermate Corp. plant has been part of the Kearney community since 1986, twenty-two years. The last few years, as one company bought out another, there have been layoffs and struggles. But few had any idea the Kearney Powermate Corp. plant that supplied portable generators around the world would close and with almost no warning to the community or the employees themselves.

A source close to the situation said employees may well have lost medical and other insurance benefits, as well as insurance that often covered their whole family. The employees may lose the retirement funds they looked forward to receiving. Even the 401Ks may cost money to salvage, money these employees now don't have access to. Then there are the couples with the double whammy since both husband and wife worked at Powermate Corp.

Every disaster around the country, including Katrina, pointed out the need for portable generators when electricity was unreliable or non-existent. Many of these portable generators came from the Powermate Corp. plant in Kearney, NE. Kearney's disaster the winter of 2007 with ice storms that left the whole area without power, some for weeks, caused hundreds, maybe thousands in the Kearney area to purchase Powermate Corp. portable generators.

The closing of the Powermate Corp. plant is a hit for many Kearney area families. It is also a hit for the economy of Kearney as a whole. But there is another problem with the closing of the Powermate Corp. plant that may affect many not just in Kearney, but also the rest of the country. Parts. That's right, parts. Repair parts.

The Powermate Corp. web site (http://www.powermate.com/generators) made this claim before the site went down: "Our products are backed by the best warranty coverage available and, when service is required, you have access to a comprehensive network of 2000 service centers nationwide.

"Whether you need portable power for boating, camping, or tailgating, or for when the lights go out at home, or for everyday jobsite use, when you buy a Powermate generator, you will have peace of mind knowing you have purchased a product that offers superior performance, reliability, and durability."

Will this still be true? What happens when the Powermate Corp. portable generators go down and need parts and repair? Where will parts be available? Who will owners go to for repairs? Have those who purchased the Powermate Corp. portable generators to use in disasters such as Katrina have a large, unwieldy generator on their hands with warranties not worth the paper they've been written on and that may become pieces of junk in the near future?

The closing of the Kearney Powermate Corp. plant impacts on many levels personally and economically. It also begs the question, "Who will supply portable generators when the next Katrina type disaster strikes?"

We can hope that when the dust settles, a company will buy out Powermate Corp. and re-open the Kearney plant.