The continued steep decline in construction activity has required Pella Corp. to eliminate 37 full-time manufacturing jobs in Sioux Center, Iowa, according to a statement from the company. The changes were effective on September 18.

“As a just-in-time manufacturer, we build the bulk of products to order, rather than accumulating large amounts of stock. As a result, our business is very cyclical and very much tied to the health of the housing economy,” says Pella spokesperson Kathy Krafka Harkema. “Through July of this year, new housing starts in the [United States]. were down by more than 40 percent year-to-date over last year’s deep declines, resulting in excess manufacturing capacity in Sioux Center. That’s why we’re taking these measures now to align our Sioux Center workforce with business needs before the onset of winter when construction traditionally slows even further.”

Those Sioux Center team members who were laid off will qualify for transition pay and benefits to assist them in the process of searching for a new career. In addition, Pella is partnering with Iowa Workforce Development (IWD) officials and area employers to help connect separated workers with potential new jobs.Pella Corporation’s Sioux Center Operations now employs 338 in the facility where the company manufactures windows.

“Unfortunately, construction activity has been hard-hit by the surplus of existing housing on the market, coupled with the tightening of financial markets and dramatic downturn impacting virtually all sectors of the U.S. economy, and the housing market is not expected to rebound quickly,” adds Krafka Harkema. “We will continue to monitor the economy and market actions in the future to determine what, if any, additional actions might be necessary.”


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