Closures & Layoffs (Dec. 7-13): Job Losses by Industry

A Weekly Report on Future Corporate Downsizings

December 11, 2008

In this week's issue:

Job losses large and widespread.

Plus, a whole new round of major U.S. corporation closures and layoffs were announced in Alabama, Arizona, California, Connecticut, Florida, Georgia, Indiana, Iowa, Kentucky, Minnesota, North Carolina, Oregon, South Carolina, Texas, Washington and Wisconsin.

Job Losses Large, Widespread

Nonfarm payroll employment fell sharply (-533,000) last month and the unemployment rate rose from 6.5 to 6.7%, the Bureau of Labor Statistics of the U.S. Department of Labor reported.

November's drop in payroll employment followed declines of 403,000 in September and 320,000 in October, numbers that were revised upward over much lower numbers released just a month ago.

Employment continued to decline in manufacturing (-85,000), with widespread job losses occurring among the component industries. Manufacturing employment has declined by 604,000 since December.

Within durable goods manufacturing, job losses occurred in November in fabricated metal products (-15,000), machinery (-11,000), wood products (-9,000), furniture and related products (-7,000), primary metals (-7,000), and computer and electronic products (-7,000).

Employment in transportation equipment edged up, as a return of 27,000 aerospace workers from a strike more than offset a job loss in motor vehicle and parts (-13,000). In the nondurable goods component, job losses occurred in plastics and rubber products (-12,000), printing and related support activities (-5,000), and textile mills (-5,000).

Employment in construction fell by 82,000 in November, with losses occurring throughout the industry. Since peaking in September 2006, construction employment has decreased by 780,000. Specialty trade contractors lost 50,000 jobs in November, with both residential and nonresidential components contributing to the decline.

Within professional and business services, the employment services industry lost 101,000 jobs in the month, bringing total job losses since December to 495,000. In November, employment fell by 10,000 in architectural and engineering services.

Employment in retail trade fell by 91,000 in November. Job losses continued in automobile dealerships (-24,000). Employment in the industry has fallen by 115,000 since December, with much of the decrease occurring over the last 2 months.

In several other retail industries, seasonal hiring for the holidays fell short of normal in November. After seasonal adjustment, employment declined in clothing and accessories stores (-18,000); sporting goods, hobby, book, and music stores (-11,000); and furniture and home furnishing stores (-10,000).

Wholesale trade employment was down by 25,000 over the month, with most of the decrease among durable goods wholesalers.

Employment in leisure and hospitality declined by 76,000 in November, with most of the decline occurring in accommodation and food services (-54,000). Since peaking in April 2008, accommodation and food services has lost 150,000 jobs.

Employment in financial activities continued to decline (-32,000). Within the industry, job losses occurred in credit intermediation and related activities (-16,000) and in rental and leasing services (-9,000). Job losses in financial activities have accelerated in the last three months, bringing the total decline since December to 142,000.

Elsewhere in the service-providing sector, employment in transportation and warehousing declined by 32,000 in November, with most of the losses in truck transportation (-12,000) and couriers and messengers (-8,000).

The information industry lost 19,000 jobs over the month.

Health care employment grew by 34,000 in November. Over the past 12 months, health care has added 369,000 jobs.

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Closures & Layoffs

Fleetwood Enterprises Inc. plans to consolidate manufactured housing plants in Woodland, CA; Auburndale, FL; Willacoochee, GA; Benton, KY; and Pembroke, NC. All of these plants will work through the orders they currently have and will begin transitioning production to some of the remaining 13 Fleetwood Housing Group facilities. They are expected to close within approximately 60 days. The company's Trendsetter Homes plant in Douglas, GA, which is one of two producing modular housing, will also be closed, effective immediately. Impending closure announcements were also made at Fleetwood's travel trailer manufacturing centers in Crawfordsville, IN. After the transition, all of the company's travel trailers and fifth wheels will be produced in its three existing plants in Ohio and Oregon. The closings will effective by mid January.

Viasystems Group Inc. plans to close its manufacturing facility in Milwaukee, WI, and its final-assembly and distribution facility in Newberry, SC, along with other global work force reductions.

The following future closings and permanent mass layoffs were reported in Alabama.

FPMI Solutions Inc. is closing down and laying of 89 workers in Arab on Dec. 29.

Georgia-Pacific Corp. is closing down operations in Monroeville and at 4224 Highway 21 North in Peterman and laying off 319 workers Jan. 10.

United Industrial is closing down its Spectrum Brands operations at 1309 Edwards St. in Sylacauga and laying off 107 workers Jan. 15.

Louisiana-Pacific Corp. is closing down at 1500 N. Clarke Industrial Road in Thomasville and laying off 129 workers next month.

Mars Petcare US Inc. has started laying off 54 workers at 1904 16th St. North in Birmingham.

Teledyne Continental Motors has started laying off 60 workers at 2039 S Broad St. in Mobile.

Berry Plastics Corp. is laying off 71 workers at its Covalence Specialty Adhesives at 126 Textile Ave. in Albertville Jan. 20.

West Fraser is closing its lumber mill at 20025 Odom Road in Citronelle and laying off 102 workers this month.

The following future closings and permanent mass layoffs were reported in Arizona.

Caliber Funding LLC is laying off 13 workers at 9201 E. Mountain View Road, Suite. 210 in Scottsdale on Dec. 31.

Kinro Inc. is laying off 67 workers at 3065 S. 43rd Ave. in Phoenix on Dec. 31.

Kmart is laying off 72 workers at 1920 W. Broadway in Mesa and 135 workers at 12025 N. 32nd St. in Phoenix on Dec. 18.

Spherion is laying off 65 workers at 7 W. 2nd St. in Yuma on Dec. 31.

The Share Group has started laying off 77 workers at 4411 S. 40th St., Suite D6, in Phoenix.

XDx, a molecular diagnostic company at 3260 Bayshore Blvd. in Brisbane, CA, is eliminating 25 positions.

The following future closings and permanent mass layoffs were reported in Connecticut.

Big Y Foods Inc. is laying off 89 workers in East Hartford on Jan. 15.
P&G Hair Care LLC is closing down a Clairol operation at 1 Blachley Road in Stamford and laying off 320 workers; layoffs begin next month with the plant closing in March 2010.

Shaw's is closing down and laying off 89 workers at 605 Post Road East in Westport on Jan. 10.

The following future closings and permanent mass layoffs were reported in Florida.

Bluegreen Corp. is laying off 182 workers at 1701 Park Center Drive, Suites 110 & 201 in Orlando and 122 at 4960 Conference Way, North, Suite 100, in Boca Raton on Jan. 24.

Ennis Paint Inc. is laying off 30 workers at 3550 Agricultural Center Dr. in St. Augustine on Jan. 5.

Fleetwood Homes has started laying off 73 workers at 700 South Main St. in Auburndale.

Marriott Vacation Club International has started laying off 81 workers at 7000 Grand Horizons Blvd. in Orlando.

Mundy Maintenance and Services has started laying off 131 workers at 3000 Old Chemstrand Road in Cantonment.

The following future closings and permanent mass layoffs were reported in Georgia; no layoff dates were specified.

CDG Management LLC is laying off 84 workers at in Augusta.
Dekalb County Schools is laying off 127 workers at in Decatur.

Qualex Inc is laying off 63 workers at 1355 Rock Mountain Blvd. in Stone Mountain.

Shaw Industries is laying off 125 workers at one plant 7G, one of its three plants in Calhoun.

Wasau Insurance is laying off 26 workers at 925 N. Point Pkwy in Alpharetta.

The following future closings and permanent mass layoffs were reported in Indiana.

Accent Marketing is laying off 164 workers at 645 Park East Blvd. in New Albany on Jan. 20.

ArcelorMittal USA Inc. is laying off 2,444 workers at its steel plant in Burns Harbor on Jan. 25.

Bluegreen Corp. is laying off 92 workers at 6435 Castleway West Drive in Indianapolis on Jan. 20.

Dexter Axle Co. is closing down and laying off 164 workers at 11870 N 650 E in North Manchester on Jan. 2.

Harford Metal Products Inc. is closing down and laying off 38 workers in Hartford City on Jan. 20.

Knauf Insulation is laying off 65 workers at 240 Elizabeth St. in Shelbyville on Jan. 19.

MI Windows and Doors Inc. is closing down and laying off 133 workers at 401 S Enterprise Blvd. in Lebanon on this month.

SourceNet inc. is closing down and laying off 48 workers at its operations in East Chicago on this month.

Books Are Fun Ltd. is closing down and laying off 108 workers at 1680 Highway 1 North in Farifield, IA, this month.

The following future closings and permanent mass layoffs were reported in Kentucky; no layoff dates were specified.

GREIF is laying off 46 workers at 5100 Interchange Way in Louisville
Holley Performance Products is laying off an unspecified number of workers at 1801 Russellville Road in Bowling Green.
Intertec is laying off about 157 workers at 900 Nutter Drive in Bardstown.
Leggett & Platt is laying off about 154 workers at 6019 Preston Highway in Louisville.

SurModics Inc. will reduce its workforce by approximately 5%. In addition, the company is consolidating its office space in Eden Prairie, MN. The workforce reduction was to be completed by the end of November, and the move of personnel from a leased facility to corporate headquarters is to be completed by the end of this month.

Aleris International Inc. will be idling one of the coil coating lines at its Roxboro, NC, facility this month. The Roxboro coil coating facility supplies coated aluminum coil for building and construction, transportation, distribution and consumer durables applications. This action will affect 45 salaried and hourly employees at the facility and will reduce potential production by approximately 25 MM pounds per year.

The following future closings and permanent mass layoffs were reported in Oregon.

ACS Business Process Solutions is closing down and laying off 90 workers at 7303 SE Lake Road in on Feb. 3.

DHL Express is closing down U.S. operations and will be closing down at 14344SW 72nd Ave. in Tigard and at 5330 Courier Court Portland affecting 140 workers.

Shorewood Packaging Corp. is closing down and laying off 88 workers at 500 International Way in Springfield, OR, beginning Dec. 19.

The following future closings and permanent mass layoffs were reported in Texas.

ABX Air Inc. is closing down at 101 Apron Road in Waco on Jan. 13, laying off 185 employees.

Alcoa is curtailing production at its plant at Farm to Market Road 1786 in Rockdale by Jan. 17, laying off 480 employees.

Aquatic Industries Inc. is closing its whirlpool plant at 11880 Ranch Road 2243 in Leander on Jan. 26, laying off 101 employees.

Carlson Wagonlit Travel will close its office at 12962 Willow Chase in Houston by Jan. 31, laying off 55 employees.

Flint Hills Resources LP will close its chemical plant at 2505 S. Grandview in Odessa on Jan. 16, laying off 454 employees.

Leggett & Platt Inc. is closing its Rodgers-Wade wood retail fixtures operations at 1401 3rd SW in Paris in February, laying off 89 employees.

Siemens Energy & Automation Inc. is closing its facility at 1400 Henry Brennan Drive in El Paso by June 30, laying off 154 employees.

Temple-Inland is ceasing producing hardboard siding products at its plant at 600 A St. in Diboll as of Dec. 5, laying off 79 employees.

The University of Texas Medical Branch has started laying off 3,000 employees at 301 University Blvd. in Galveston due to permanent damage from Hurricane Ike.

The following future closings and permanent mass layoffs were reported in Washington.

CDG Management is closing its WA State Firefighters Association Fundraising Center at 2302 Harrison Avenue NW in Olympia on Dec. 21, affecting 18 workers.

Hunter Douglas Fabrication Co. is closing down at 1905 Raymond Ave. SW in Renton on Feb. 2, affecting 166 workers.

The following future closings and permanent mass layoffs were reported in Wisconsin.

Bluegreen Corp. will close marketing facilities in four locations on Jan. 20, resulting in permanent layoffs of 153 employees. The facilities are: 922 Windsor St., Suite 2, in Sun Prairie; 1701 Wisconsin Dells Ave. in Wisconsin Dells; Highway H S944 Christmas Mountain Road in Wisconsin Dells; and 1171 Wisconsin Dells Ave. in Baraboo.

Hexicon is planning a permanent layoff and ultimate closing of the facility at 8601 95th St. in Pleasant Prairie with layoff affecting approximately 110 individuals between Jan. 30 and Sept. 25.

Plymouth Tube Co. plans to layoff at least 31 workers starting Jan. 30 at 2056 Young St. in East Troy.

Presto Products is laying off 250 employees at 204 E. 3rd Ave. in Weyauwega starting around Feb. 1 and continuing in phases until June 30.

Roundy's Supermarket will close its Copps supermarket at 1009 Holiday Lane in Hurley, resulting the permanent layoff of 29 full-time and 27 part-time employees by Jan. 28.