2 area manufacturers will cut hundreds of jobs

By BILL VIRGINP-I REPORTER
Two Washington-based manufacturers said Thursday they are laying off workers.
Intermec Inc., the Everett-based maker of bar code and radio-frequency identification systems for tracking inventory and shipments, said it plans to cut 260 jobs companywide as it moves manufacturing from its Everett headquarters to a Singapore-based contractor and consolidates repair work at other locations.
Of that total, 180 jobs will be gone from Everett, according to the company's filing with the state Employment Security Department.
The layoffs will occur over the next nine to 12 months.
Genie Industries Inc.'s parent, Terex Corp., laid off 120 full-time workers and an undisclosed number of temporary workers in its aerial work platforms segment. Redmond-based Genie, which makes lifts, booms and light towers, makes up the majority of that division, but the company didn't disclose how many of the layoffs were there or at its manufacturing plant in Moses Lake.
Those layoffs occurred this week.
"Our business is a cyclical one," said Genie spokeswoman Melinda Zimmerman-Smith. "We're responding to the industries we serve, particularly construction," which has been hit by rising fuel and raw-material costs.
Intermec plans to transfer final assembly of its products to Venture Corp. Ltd., a Singapore-based contract manufacturer, consolidate two U.S. service depots (including one in Everett) to existing locations in the U.S. and Mexico and transfer onsite field service repair to an outside company.
Dennis Faerber, senior vice president of global supply chain operations, said Venture has been doing product assembly and engineering for Intermec for a decade.
Intermec buys many of the components used in its products in Asia, sends them to Everett for final assembly, then ships them to customers around the world.
That model "is a very long supply chain and, frankly, a very expensive supply chain and getting more expensive as logistics costs continue to increase," Faerber said.
With the decision to end production in Everett and the flow of parts and subassemblies that would also be needed for repairs, Intermec decided it "could no longer sustain a viable service depot operation in Everett," added Mike Wills, senior vice president of global sales and service.
"This is not a reaction to near-term economic conditions, " Wills added. With many of its competitors already producing products in Asia and more headed that direction, "This is a strategic play" for Intermec.
Intermec currently has 690 employees at Everett. What will remain are the corporate offices, engineering, marketing and finance operations.
The company didn't disclose how much the changes will reduce expenses but said it plans to take pretax restructuring charges of $7.5 million to $9 million, spread out over multiple quarters.
Intermec also warned that second-quarter revenue will be $216 million to $218 million, less than its previous estimates of $227 million to $232 million, because of the timing of large projects for certain customers.
Intermec stock fell $4.14, or 20 percent, to close at $16.08 in trading Thursday.
P-I reporter Bill Virgin can be reached at 206-448-8319 or billvirgin@seattlepi.com.