Business
Storied presses print L.A. Times for the last time as production moves to Riverside
The swing shift is about to start at a plant that is about to close. Late winter sunlight casts long shadows from workers crossing the parking lot, where stray cats skulk among the cars.
Only two weeks left, and the routine is unchanged: clocking in at 5 p.m., heading to the locker room, trading street clothes for work wear. If anyone feels sadness or loss, no one shows it. They have a newspaper to put out.
“We’re trying to do this with a little class and dignity,” said shift supervisor Kal Hamalainen.
Sixteen months ago, they were told that the Los Angeles Times, their employer, would outsource the printing of the paper and that the Olympic printing plant, once a crown jewel in a vast media empire, would shut down sometime in 2024.
The decision was set in motion many years earlier when the Chicago-based Tribune Co., then owner of The Times, sold its historic properties, and The Times became a tenant.
Now, six years after Dr. Patrick Soon-Shiong bought The Times in 2018, the lease on the Olympic plant is expiring, and paying rent has become untenable. The paper will be printed in Riverside by the Southern California Newspaper Group, with its circulation numbers remaining the same.
“Technology and economics have changed dramatically, and we’re transitioning to a new era for our business,” Times President and Chief Operating Officer Chris Argentieri said in a statement, citing both the daily newspaper and digital platforms.
March 10 will be the last run of The Times at the Olympic plant.
Dressed in blue pants and blue shirts with a Times eagle patch, the workers find their places throughout the sprawling facility. Each is a crucial link in a chain of production often called the daily miracle: that alchemical transformation of words and pictures into a newspaper to be held, sold, mailed or tossed onto any driveway, any doorstep in the city.
What once was so easy to take for granted has never seemed so remarkable.
They have watched as their crews have been cut, three shifts reduced to one. They once printed other papers besides The Times, and those have gone elsewhere. But it’s hard to be nostalgic over what seems inevitable.
Newspapers have suffered many depredations over the years, from the internet to cost-cutting shareholders to skepticism and disinterest in the written word. With print readership declining in most markets, many media outlets are publishing stories online before printing them. The Times is following this trend, though it consistently ranks among the six largest newspapers in the country for print circulation.
But that’s another story. On this Friday night, Feb. 23, what’s more important is a Ukrainian woman’s search for her husband, a jury’s verdict in a hit-and-run, and in sports, a profile of UCLA’s mercurial basketball coach, as well as the obituaries, comics and horoscopes.
Press operators gather to review the run: Tomorrow’s paper will have color on all but one of the 22 pages. They’ll start at 8:30, print a little more than 100,000 copies and be done in less than two hours.
To step inside the Olympic printing plant is to step inside a time capsule enshrining a 19th century product manufactured with 20th century technology and poised for 21st century obsolescence.
Within these walls was the future of Los Angeles and Southern California, as once imagined by the owners of The Times. Fueled by a diverse economy — a dividend of the postwar boom years — this building, likened by one manager to the Taj Mahal, was dedicated on March 6, 1990. (The paper had been printed on the company’s aged presses in the basement of its headquarters downtown.)
“This was to be a model for the world, not just Southern California,” said Tom Johnson, 82, publisher from 1980 to 1989.
It cost $230 million, the lion’s share of a nearly half-billion-dollar expenditure that saw the construction of a printing plant in Chatsworth and the renovation of an existing production facility in Costa Mesa. Those were halcyon days for The Times, whose revenue in 1991 topped $3.7 billion.
“Come visit the 21st century,” Times readers were encouraged in an advertisement inviting them to tour the new Olympic plant.
Its story was told by numbers: a 26-acre site; a 684,491-square-foot building; six presses capable of printing 70,000 96-page papers per hour; a 400,000-gallon underground water tank for fire suppression; six 6,200-gallon tanks of color ink; a warehouse capable of holding a 65-day supply of paper; and a 148-seat cafeteria for nearly 500 employees.
Beyond the numbers was the Jetsons quality of the place.
Robotic vehicles delivered rolls of paper from the warehouse to machines that fed the presses. Doors opened at the push of a button. Conveyors whisked printed papers to automated bundlers and then to awaiting pallets, hands free.
At the center of it all were the six presses, three on one side and three on the other, running almost two football fields long, connected by a nearly soundproof room with windows angling overhead, providing press operators with easy line of sight and silent escape from the incessant 100-decibel thrum.
The lobby, as elegant as an art museum, was finished in marble and hardwood and featured a glass wall, three stories tall, overlooking the presses that receded far in the distance. In the floor lay a time capsule, a measure of the owner’s faith in the future, to be opened on the paper’s bicentennial: Dec. 4, 2081.
Bob Lampher came to work at the Olympic plant in 1989 as the presses were being installed. He had started at the Times 22 years earlier, “a dream job” after working the presses for the Anaheim Bulletin, the Downey Southeast News and the Costa Mesa Daily Pilot.
“Oly” — as the plant was known — “was the most modern pressroom around,” said Lampher, 82, a retired superintendent. “When I first got here, my jaw dropped. It was simply beautiful, and I thought it would run forever.”
The assumption is forgivable. The Times’ weekday circulation — spread among the Olympic plant, as well as Orange County and the San Fernando Valley printing facilities — was 1.2 million; 1.5 million on Sundays. (Today, success is measured by digital subscriptions, currently close to 550,000.)
To meet that printed volume — for a newspaper so filled with advertising that it ranged from 100 to 200 pages daily (on the Sunday after Thanksgiving 1993, the paper was a whopping 592 pages) — managers choreographed a round-the-clock dance that pushed newsprint through the presses at nearly 30 mph, resulting in close to 60,000 papers printed in an hour.
The sound was like a thundering locomotive. Ink mist and paper dust flew through the air. Margins of error were unforgiving.
“When you’re doing it, it boggles the mind,” said Lampher, who left The Times in 2002. “I would go back tomorrow just to hear those presses running again.”
His buddy and former press room manager, Jack Boethling, 77, understands. “When you get ink in your veins, there’s nothing like the roar of the presses going at full speed.”
As the swing shift gets underway, Emmett Jaime pries inked plates off cylinders. A Dead Kennedys song plays on a radio boom box, as a bell rings a brief warning each time a cylinder turns.
Jaime, 56, plans to take a little time off before looking for another job. He’d like to work eight more years, but he followed his father to The Times when he was 19 and knows only this world.
John Martin, 60, sits at an operator’s console, studying a copy of a real estate section, whose advertiser is known to be especially picky. He’s making sure the columns of type and photographs sit squarely on the page with equal margins top and bottom.
“It’s been a great, great, great, great run,” he said, describing his 43 years with The Times. When he started, his seniority number was 380. He had hoped one day to make No. 1 but is satisfied to be No. 22.
In the paper warehouse, Marcus Arnwine, 64, takes a quick inventory of the newsprint. Once a thick forest with rolls stacked five high to the ceiling, it is now a small glade as stock runs low.
“I’m going to miss the wealth of knowledge in this place,” said Arnwine, who started here when he was 20. “There was always someone here who knew something you needed to know.”
Neither Martin nor Arnwine is certain what their next step will be, whether to look for work or retire.
Later that evening, Adam Lee is in the plate room imprinting digital files, produced by editors and page designers, onto aluminum sheets. The air, bathed yellow by safe lights, smells of photographic chemicals and is filled with a rhythmic clicking and a shuttling swoosh.
Lee, 46, is one of the few who has a new job lined up. He started here 18 years ago, joining his stepmother and his uncle, as well his father, who put in 47 years before retiring.
His story is a familiar one: a pressroom of multigenerational employees banking on good benefits, good income and challenging work.
“When we first started,” Hamalainen said, “it was common for an old-timer to take a new hire aside and say, ‘Well, kid, you’ll have a job for life.’ ”
Today in the building’s growing emptiness, they are still a community kept close by their commitment to that work, proud of their craft and eager to dazzle visitors with technical explanations of a job that took years to master: the speed of the paper, the proportions of water and ink, the ability to make a fix on the fly.
They knew there were risks. Some lost fingers in the presses or wrenched knees working on the floor. Some lost marriages to the strain of an unforgiving schedule.
As often as they held history in their hands — the Gulf War, 9/11, the invasion of Iraq, the death of John Wooden, of Kobe and the pandemic — the work never allowed lingering, and they never missed a deadline.
They lived by the clock and by schedules defined by the vastness of Southern California. They had to know when to finish a run to make a 6 a.m. delivery to Santa Barbara, San Diego, Palm Springs.
“Old news doesn’t sell,” Lampher said.
By 8:44, the presses are rolling at a modest clip. Crews grab from the conveyor early copies being sidelined as waste. They thumb through pages to make sure the ink density is proper, that the color is in registration, the margins are set, pagination perfect, date accurate.
They make refinements and by 9:15 set the throttle to a full gallop, 45,000 papers an hour. Overhead, the newsprint whips by in a blur, running through a succession of cylinders inked cyan, magenta, yellow and black, before converging into a central machine that folds and cuts it into individual papers.
They feel that familiar thrum in their chests. They breathe the moist, almost humid air, and still marvel that such brutish machinery can produce such delicate results.
“It’s like an NFL player who can also be a ballerina,” Hamalainen said. “There is so much strength, power, endurance and finesse in this equipment.”
They find it hard to believe that once they are done, the presses will be dismantled and sold for scrap. The building and the property will be turned into movie and television production studios, said a spokesperson for the owner, Atlas Capital Group.
Then at 10:31, the pitch of the whirring presses begins to drop as they slow, soon coming to a stop with 107,481 copies printed.
A few minutes later, a voice comes over a loudspeaker: “No finals.”
And they are done. A conveyor clatters as the last papers are carried to the bundlers. The first delivery truck has already left. The last truck will leave at 12:45 a.m.
The swing shift now scatters. Some of the crew strip plates off the presses. Some sit back and read tomorrow’s news, eschewing The Times’ website for the printed paper. A few head to the cafeteria to watch a movie on their phones or to the fitness room for a few reps before heading home.
The witching hour has begun, a disquieting moment for them to have nothing to do. Usually, they’d be cleaning presses and getting ready for another run, but today such diligence doesn’t make much sense.
Hamalainen steps out onto the balcony where some of the crew has gathered.
From this vantage, the Olympic plant has always felt vital to Los Angeles. Two miles away, the skyscrapers of the financial district light up in the night sky, windows glowing against the darkness. City Hall glows blue and yellow in honor of Ukraine on the second anniversary of the war. Distant sirens and horns and the whoosh of the nearby freeway provide the accompanying pulse.
They speak easily among themselves, their emotions masked by familiar banter, old memories and pride.
“It used to be that the quietest time was Sunday morning,” said Hamalainen, once the week’s final run completed at 2:30 a.m.
“Yeah, and in those days, Macy’s was the big advertiser,” said pressman Joaquin Velazquez, 65. He started working at the Olympic plant in 1984. “Remember that? Now, maybe there will be one ad.”
“Used to be a 16-pounder on Black Fridays.”
“Yep, and more than a million papers every day.”
They know they’re running on habit and adrenaline. They know there will be a bit of a freefall once they’re done.
“They’re hiring at the Arizona Republic and the Bay Area News Group and the Las Vegas Review-Journal,” Hamalainen said. “There’s work, but you have to be willing to move away.”
Velazquez draws on his cigarette. Soon, he will no longer be commuting four hours a day from his home in Eastvale.
“It’s sad to see it come to an end like this, but we’re blessed to hit the finish line,” Velazquez said.
“You know, I think I’m going to sneak back in, just to see it all cleared out,” Hamalainen said. “This is going to be one big empty building.”
Business
Scott Bessent, Trump’s Billionaire Treasury Pick, Will Shed Assets to Avoid Conflicts
Scott Bessent, the billionaire hedge fund manager whom President-elect Donald J. Trump picked to be his Treasury secretary, plans to divest from dozens of funds, trusts and investments in preparation to become the nation’s top economic policymaker.
Those plans were released on Saturday along with the publication of an ethics agreement and financial disclosures that Mr. Bessent submitted ahead of his Senate confirmation hearing next Thursday.
The documents show the extent of the wealth of Mr. Bessent, whose assets and investments appear to be worth in excess of $700 million. Mr. Bessent was formerly the top investor for the billionaire liberal philanthropist George Soros and has been a major Republican donor and adviser to Mr. Trump.
If confirmed as Treasury secretary, Mr. Bessent, 62, will steer Mr. Trump’s economic agenda of cutting taxes, rolling back regulations and imposing tariffs as he seeks to renegotiate trade deals. He will also play a central role in the Trump administration’s expected embrace of cryptocurrencies such as Bitcoin.
Although Mr. Trump won the election by appealing to working-class voters who have been dogged by high prices, he has turned to wealthy Wall Street investors such as Mr. Bessent and Howard Lutnick, a billionaire banker whom he tapped to be commerce secretary, to lead his economic team. Linda McMahon, another billionaire, has been picked as education secretary, and Elon Musk, the world’s richest man, is leading an unofficial agency known as the Department of Government Efficiency.
In a letter to the Treasury Department’s ethics office, Mr. Bessent outlined the steps he would take to “avoid any actual or apparent conflict of interest in the event that I am confirmed for the position of secretary of the Department of Treasury.”
Mr. Bessent said he would shutter Key Square Capital Management, the investment firm that he founded, and resign from his Bessent-Freeman Family Foundation and from Rockefeller University, where he has been chairman of the investment committee.
The financial disclosure form, which provides ranges for the value of his assets, reveals that Mr. Bessent owns as much as $25 million of farmland in North Dakota, which earns an income from soybean and corn production. He also owns a property in the Bahamas that is worth as much as $25 million. Last November, Mr. Bessent put his historic pink mansion in Charleston, S.C., on the market for $22.5 million.
Mr. Bessent is selling several investments that could pose potential conflicts of interest including a Bitcoin exchange-traded fund; an account that trades the renminbi, China’s currency; and his stake in All Seasons, a conservative publisher. He also has a margin loan, or line of credit, with Goldman Sachs of more than $50 million.
As an investor, Mr. Bessent has long wagered on the rising strength of the dollar and has betted against, or “shorted,” the renminbi, according to a person familiar with Mr. Bessent’s strategy who spoke on condition of anonymity to discuss his portfolio. Mr. Bessent gained notoriety in the 1990s by betting against the British pound and earning his firm, Soros Fund Management, $1 billion. He also made a high-profile bet against the Japanese yen.
Mr. Bessent, who will be overseeing the U.S. Treasury market, holds over $100 million in Treasury bills.
Cabinet officials are required to divest certain holdings and investments to avoid the potential for conflicts of interest. Although this can be an onerous process, it has some potential tax benefits.
The tax code contains a provision that allows securities to be sold and the capital gains tax on such sales deferred if the full proceeds are used to buy Treasury securities and certain money-market funds. The tax continues to be deferred until the securities or money-market funds are sold.
Even while adhering to the ethics guidelines, questions about conflicts of interest can still emerge.
Mr. Trump’s Treasury secretary during his first term, Steven Mnuchin, divested from his Hollywood film production company after joining the administration. However, as he was negotiating a trade deal in 2018 with China — an important market for the U.S. film industry — ethics watchdogs raised questions about whether Mr. Mnuchin had conflicts because he had sold his interest in the company to his wife.
Mr. Bessent was chosen for the Treasury after an internal tussle among Mr. Trump’s aides over the job. Mr. Lutnick, Mr. Trump’s transition team co-chair and the chief executive of Cantor Fitzgerald, made a late pitch to secure the Treasury secretary role for himself before Mr. Trump picked him to be Commerce secretary.
During that fight, which spilled into view, critics of Mr. Bessent circulated documents disparaging his performance as a hedge fund manager.
Mr. Bessent’s most recent hedge fund, Key Square Capital, launched to much fanfare in 2016, garnering $4.5 billion in investor money, including $2 billion from Mr. Soros, but manages much less now. A fund he ran in the early 2000s had a similarly unremarkable performance.
Business
As wildfires rage, private firefighters join the fight for the fortunate few
When devastating wildfires erupted across Los Angeles County this week, David Torgerson’s team of firefighters went to work.
The thousands of city, county and state firefighters dispatched to battle the blazes went wherever they were needed. The crews from Torgerson’s Wildfire Defense Systems, however, set out for particular addresses. Armed with hoses, fire-blocking gel and their own water supply, the Montana-based outfit contracts with insurance companies to defend the homes of customers who buy policies that include their services.
It’s a win-win if the private firefighters succeed in saving a home, said Torgerson, the company’s founder and executive chairman. The homeowner keeps their home and the insurance company doesn’t have to make a hefty payout to rebuild.
“It makes good sense,” he said. “It’s always better if the homes and businesses don’t burn.”
Torgerson’s operation, which has been contracting with insurance companies since 2008 and employs hundreds of firefighters, engineers and other staff, highlights a lesser-known component of fighting wildfires in the U.S. Along with the more than 7,500 publicly funded firefighters and emergency personnel dispatched to the current conflagrations, which have burned more than 30,000 acres and destroyed more than 9,000 structures, a smaller force of for-hire professionals is on the fire lines for insurance companies, wealthy individual property owners or government agencies in need of additional hands.
Their presence isn’t without controversy. Private firefighters hired by homeowners directly have drawn criticism for heightening class divides during disasters. This week, a Pacific Palisades homeowner received backlash for putting a call out on X, the social media site formerly named Twitter, for help finding private firefighters who could save his home.
“Does anyone have access to private firefighters to protect our home in Pacific Palisades? Need to act fast here. All neighbors houses burning,” he wrote in the since-deleted post. “Will pay any amount.”
“The epitome of nerve and tone deaf!” someone replied.
In 2018, Kim Kardashian and Kanye West credited private firefighters for saving their $60-million home in the Santa Monica mountains during a wildfire. But those who serve wealthy clients make up only a small fraction of nonpublic firefighters, according to Torgerson.
“Contract firefighters who are hired by the government are the vast majority,” he said. The federal government has been hiring private firefighters since the 1980s to support its own forces. According to the National Wildfire Suppression Assn., there are about 250 private sector fire response companies under federal contract, adding about 10,000 firefighters to U.S. efforts.
Some private firefighting companies, including Wildfire Defense Systems, are known as Qualified Insurance Resources and are paid by insurance companies to protect the homes of their customers. Wildfire Defense Systems refers to its on-the-ground forces as private sector wildfire personnel.
Wildfire Defense Systems only works with the insurance industry, but other privately held firefighting companies contract with industrial clients such as petrochemical facilities and utility providers. Wildfire Defense Systems declined to disclose company revenue or what it charges for its services.
Allied Disaster Defense, a company that has sent personnel to the fires in Los Angeles, offers services to both property owners and insurance companies. Its website says its services will “enhance the insurability of properties” and “contribute to reduced claims.”
The website also has a page dedicated to services for private clients, which include emergency response and assistance with insurance claims for “high net-worth and celebrity” customers. The company does not list prices for its services and has nondisclosure agreements with its private clients.
Several other private firefighting companies are based in California, including Mt. Adams Wildfire, which contracts with government agencies, and UrbnTek, which serves Los Angeles, Orange County and San Diego among other areas. Along with spraying fire retardant on trees and brush to stop an advancing fire, the company offers “a double layer of protection by wrapping a structure with our fire blanket system.”
Torgerson, a civil engineer with 34 years in emergency services, said he has been struck by the speed of the current wildfires. While typically it takes two to 10 minutes for a fire to sweep through a home, he said, the Palisades fire is traveling at higher speeds.
“It’s moving so fast, it’ll likely take one to two minutes for these fires to pass over the properties,” he said.
He said his company responded to all 62 of the wildfires that threatened structures in California in 2024 and didn’t lose a property.
Business
As Delta Reports Profits, Airlines Are Optimistic About 2025
This year just got started, but it is already shaping up nicely for U.S. airlines.
After several setbacks, the industry ended 2024 in a fairly strong position because of healthy demand for tickets and the ability of several airlines to control costs and raise fares, experts said. Barring any big problems, airlines — especially the largest ones — should enjoy a great year, analysts said.
“I think it’s going to be pretty blue skies,” said Tom Fitzgerald, an airline industry analyst for the investment bank TD Cowen.
In recent weeks, many major airlines upgraded forecasts for the all-important last three months of the year. And on Friday, Delta Air Lines said it collected more than $15.5 billion in revenue in the fourth quarter of 2024, a record.
“As we move into 2025, we expect strong demand for travel to continue,” Delta’s chief executive, Ed Bastian, said in a statement. That put the airline on track to “deliver the best financial year in Delta’s 100-year history,” he said.
The airline also beat analysts’ profit estimates and said it expected earnings per share, a measure of profitability, to rise more than 10 percent this year.
Delta’s upbeat report offers a preview of what are expected to be similarly rosy updates from other carriers that will report earnings in the next few weeks. That should come as welcome news to an industry that has been stifled by various challenges even as demand for travel has rocketed back after the pandemic.
“For the last five years, it’s felt like every bird in the sky was a black swan,” said Ravi Shanker, an analyst focused on airlines at Morgan Stanley. “But it appears that this industry does have its ducks in a row.”
That is, of course, if everything goes according to plan, which it rarely does. Geopolitics, terrorist attacks, air safety problems and, perhaps most important, an economic downturn could tank demand for travel. Rising costs, particularly for jet fuel, could erode profits. Or the industry could face problems like a supply chain disruption that limits availability of new planes or makes it harder to repair older ones.
Early last year, a panel blew off a Boeing 737 Max during an Alaska Airlines flight, resurfacing concerns about the safety of the manufacturer’s planes, which are used on most flights operated by U.S. airlines, according to Cirium, an aviation data firm.
The incident forced Boeing to slow production and delay deliveries of jets. That disrupted the plans of some airlines that had hoped to carry more passengers. And there was little airlines could do to adjust because the world’s largest jet manufacturer, Airbus, didn’t have the capacity to pick up the slack — both it and Boeing have long order backlogs. In addition, some Airbus planes were afflicted by an engine problem that has forced carriers to pull the jets out of service for inspections.
There was other tumult, too. Spirit Airlines filed for bankruptcy. A brief technology outage wreaked havoc on many airlines, disrupting travel and resulting in thousands of canceled flights in the heart of the busy summer season. And during the summer, smaller airlines flooded popular domestic routes with seats, squeezing profits during what is normally the most lucrative time of year.
But the industry’s financial position started improving when airlines reduced the number of flights and seats. While that was bad for travelers, it lifted fares and profits for airlines.
“You’re in a demand-over-supply imbalance, which gives the industry pricing power,” said Andrew Didora, an analyst at the Bank of America.
At the same time, airlines have been trying to improve their businesses. American Airlines overhauled a sales strategy that had frustrated corporate customers, helping it win back some travelers. Southwest Airlines made changes aimed at lowering costs and increasing profits after a push by the hedge fund Elliott Management. And JetBlue Airways unveiled a strategy with similar aims, after a less contentious battle with the investor Carl C. Icahn.
Those improvements and industry trends, along with the stabilization of fuel, labor and other costs, have created the conditions for what could be a banner 2025. “All of this is the best setup we’ve had in decades,” Mr. Shanker said.
That won’t materialize right away, though. Travel demand tends to be subdued in the winter. But business trips pick up somewhat, driven by events like this week’s Consumer Electronics Show in Las Vegas.
The positive outlook for 2025 is probably strongest for the largest U.S. airlines — Delta, United and American. All three are well positioned to take advantage of buoyant trends, including steadily rebounding business travel and customers who are eager to spend more on better seats and international flights.
But some smaller airlines may do well, too. JetBlue, Alaska Airlines and others have been adding more premium seats, which should help lift profits.
While he is optimistic overall, Mr. Shanker acknowledged that the industry was vulnerable to a host of potential problems.
“I mean, this time last year you were talking about doors falling off planes,” he said. “So who knows what might happen.”
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