Economic Blows Leave St. Louis Feeling Sluggish
The end of the Cold War and a soft auto market have landed one-two punches on this Mississippi River city, where defense contracting and cars are economic heavyweights.</br></br>Since the first of the year, thousands of pink slips have gone out to St. Louis workers, with more feared. Even if the Persian Gulf crisis delays Pentagon budget cuts, many believe the damage is already done.</br></br>In February, Chrysler Corp. announced it was closing its Plant No. 1 in Fenton, in western St. Louis County. Despite some last-minute orders, the automobile assembly plant will be completely closed by November, leaving 4,500 workers out in the cold.</br></br>In July, Belleville Shoe Manufacturing Co., across the Mississippi in Illinois, announced it was letting go 160 people, or 46 percent of its work force. Belleville Shoe is the largest supplier of combat boots to the U.S. military, producing 2.4 million pairs in the past four years. The Pentagon postponed any new orders for at least a year.</br></br>On July 16, after weeks of rumors, the heaviest punch hit. McDonnell Douglas Corp., the nation's largest military contractor, said it was eliminating 17,000 jobs nationwide and as many as 5,200 in St. Louis alone. McDonnell Douglas is the largest employer in the state of Missouri, with more than 40,000 workers.