You see the expansion notices in Meridian or Post Falls, but they don’t spread evenly. Rupert today joined the list of rural places taking a hit, as Kraft Foods said it would close its processing plant there, taking 140 jobs with it, early in 2007. The plant produces cheese products.

Are there any takeaway lessons for local people, like those in Rupert, or elsewhere in Idaho or the Northwest? Well, yes, if you look closely at Kraft and its business environment.

Not, that is, at Rupert or Idaho - local conditions in that city and state appear to be irrelevant to the closure. (Not that the closure will be irrelevant to the city and state - it will put some hurt on Rupert.) Kraft was quoted as saying the closure had nothing to do with local productivity - and there’s no reason to assume otherwise - but rather is part of a series of consolidation of its processing facilities. Certainly the corporation is doing some restructuring - late last month it announced it was outsourcing most of its communications and database work.

An internal squeeze seems to be on, and in that connection you might consider this from an on-line piece basically about Wal-Mart: “In fiscal 2005, Wal-Mart saw sales grow 9.5% while inventories climbed 9.3%. Wal-Mart was able to wring out such good results by putting much of the onus on suppliers such as Procter & Gamble Co. , Kraft Foods Inc. and Estee Lauder Cos.”

Message to community economic development entities: When considering which manufacturers or base-level industries to attract to your community, or considering the mix you already have, ask who that business sells to. From that, you may be able to better determine if that business has a long or possibly short life span in your community.

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