PRESS RELEASE: Greenheck lays off 49 Schofield workers - WAOW - Newsline 9, Wausau News, Weather, Sports

PRESS RELEASE: Greenheck lays off 49 Schofield workers


SCHOFIELD (PRESS RELEASE)--Due to the continued weakness in the U.S. non-residential construction market, Greenheck announced today that it will reduce its work force by 49 production employees in Schofield effective April 2, 2010. The company continues to employ more than 2,100 individuals around the world, including approximately 1,500 in Schofield. Affected employees were notified officially of the layoff date today, although they had been informed previously that slower-than-anticipated order intake in February and March might negatively impact their employment.

"Today's actions, along with previous workforce reductions, voluntary furloughs and company-wide furlough days in both the office and factory, are necessary to adjust the size of our workforce to current order levels," said Aaron Gotham, vice president. "Non-residential construction in the U.S. has continued to decline and according to the F.W. Dodge non-residential construction outlook, this trend is expected to continue throughout 2010 and possibly into 2011. Since the start of the recession, the market for Greenheck-type products has declined more than 50% and is now at the lowest point since the 1950s."  

Company officials said today's layoff in Schofield was not related in any way to the company's recently announced facility expansion in Mexico.  In a notice to Greenheck employees, Gotham stated, "We want to assure you that our expansion in Mexico is absolutely necessary to improve our market share in Mexico and Latin America and to help make Greenheck a stronger global fan manufacturer. Manufacturing close to the customers greatly improves our ability to get new business by enabling faster delivery and reducing costs, such as a 20% savings on transportation and other logistics expenses."

Despite a shrinking U.S. construction market, Greenheck continues to hold a leadership position in the ventilation industry and has increased market share as reported by Air Movement Control Association (AMCA), an industry trade organization.  "We continue to balance the short term needs and long term objectives of our business by investing in product development, customer service, and sales initiatives to add revenue," said Gotham. "We believe once the construction industry begins to recover, we will be positioned to bounce back in an even stronger way from this difficult period in our company's history."


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