Housing Recession Causes Another Manufacturer to Close Plant

October 28th, 2011 by DWM Magazine

Another major door and window manufacturer has announced the closing of one of its plants due to the housing recession—this time Pella Corp. The company announced that it will close its West Columbia, S.C., vinyl window manufacturing site, by the end of December 2011. The plant employs 147 people.

“We consider plant closures and workforce reductions as a last resort, but new home construction has dropped more than 70 percent since 2006 and construction activity is predicted to remain soft,” said Pella spokesperson Kathy Krafka-Harkema. “Therefore, unfortunately, we must reduce excess manufacturing capacity.”

The company has operated the facility since 2004. Once manufacturing ceases there, production of doors and windows will continue at other existing Pella plants.

The company also announced that it is offering incentives for team members to retire or voluntarily leave the workforce at some of its facilities. The move is a result of the continued recession in the U.S. housing economy that is projected to continue.

“That’s why we’re now offering incentives for those who wish to voluntarily leave, to align our workforce size with business needs that continue to be impacted by low consumer confidence and the struggling U.S. economy,” said Krafka-Harkema.

Pella is offering incentives for its team members who opt to voluntarily leave the workforce at a number of its manufacturing sites. In Iowa those include operations in: Carroll, Shenandoah, Sioux Center and Pella. Incentives are also being offered at Pella’s manufacturing sites in Macomb, Ill. and Portland, Ore.

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