15.07.2008

JLG announces lay-offs

JLG which is the last of the major North American manufacturers to announce headcount reduction, has not confirmed how many of its people will be laid off, it is understood that it will affect both production and office based employees at all of the company’s plants. JLG employs over 4,000 worldwide.

Kirsten Skyba, vice president for global marketing at JLG said that the lay -offs are a response to softening construction markets to “right-size” the company with the current market conditions.”

Reports in the local newspaper claim that there might also be partial shutdowns this week, as well as for four days in August.

Vertikal Comment

JLG is the dominant producer of telehandlers in North America with a market share in the region of 60 percent, through its Lull, JLG, Gradall and SkyTrak brands, not to mention its alliance with CAT.

Telehandler sales have been much harder hit than aerial lifts given their heavy use in residential construction. Aerial lift markets are not as badly affected, but concerns over the general economy is causing rental companies to hold off on placing orders and suspend any planned fleet expansions, although the underlying demand for aerial lifts is holding up well, particularly on a global basis.

Over the past five years or more JLG has also outsourced a lot of the work that it previously carried out in house, one of the stated reasons for this strategy was to allow some of this work to be brought back in-house and retain its workforce in slower periods.

JLG may well implement this plan if the current slow down deepens.