REGION: JLG experiences more layoffs
The company said last week the latest round of downsizing will affect 500 employees worldwide.
"With financial instability and credit issues, our end markets, construction markets, are largely impacted. That's persisted on a global basis," said Kirsten Skyba, JLG's vice president, global marketing. "It's been a very challenging year."
The aerial access equipment manufacturer previously announced layoffs in July and again in August. Skyba said the three rounds affect a total of 1,400 employees, or about 31 percent of the global work force of 4,500 people.
The latest round of layoffs, which began Friday and continues through January, affects both production and administrative positions.
"Economic conditions have continued to their unprecedented deterioration since mid-September, leading construction markets to intensify their slide over the past two months. We've seen a particularly strong downturn in Europe, which has now followed the slowdown in North America," said Craig Paylor, JLG president and executive vice president of Oshkosh Corp.
JLG has facilities in McConnellsburg, Shippensburg and Bedford, as well as North Dakota; Ohio; Maasmechelen, Belgium; Tonneins, France; and Medias, Romania. Skyba said the number of affected employees at each facility is not available, but the majority of downsizing affects North American operations.
There's no question these are tougher economic times and the national and state unemployment pictures are looking worse.
The U.S. Labor Department said this week that new claims for unemployment hit a 16-week high as President Bush signed an extension of jobless benefits into law on Friday.
Also this week, the state Department of Labor and Industry said job levels hit a 20-month low in October. The job losses came primarily from manufacturing and the trade, transportation and utilities sector.
While Pennsylvania's economy has fared better than much of the country, unemployment tied a five-year high in October. Unemployment in Franklin and Fulton counties also recently hit a five-year high. Unemployment claims have been significantly higher this year in both counties.
Amid announcements of swelling unemployment and layoffs this week, there was a bright spot for JLG. The company broke ground Tuesday for a new facility in Tianjin, China.
"Long-term, the more you can balance your geographic opportunities and market segments, the better it positions you to weather this downturn, which has hit many companies," Skyba said.
Skyba said JLG currently does very little business in China and the company saw "a very significant growth opportunity." She said the decision to build in China was not based on outsourcing or lesser labor rates.
"The reality is for us to sell more products, we're at a disadvantage because of shipping rates. It puts us at a price disadvantage. The intent is to have a better competitive position to grow in Asia," she said. "If you look at JLG's history, our production is typically linked to areas where we build business. As Europe's grown, we've built facilities there. This is the next step JLG is taking."
While the North American and European construction markets have seen a significant slowdown, China is seeing growth.
"Look at the amount of construction that is taking place in terms of transforming a country and society that is the largest population on the planet. It's remarkable the amount of money being spent. It just makes sense to be there," said L. Michael Ross, president of the Franklin County Area Development Corp.
The Tianjin facility is scheduled for completion in early 2010.
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Marcus Rauhut can be reached at mrauhut@publicopinionnews.com or 262-4752.
Labels: JLG Inustries, layoffs
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