CENTRAL MOLONEY TO LAY OFF 50

By Wes Clement/OF THE COMMERCIAL STAFF

About 50 Central Moloney Inc. employees are to be laid off soon, Human Resources Director Chris Hart said Friday.

The layoffs, he said are a result of continuing low new home starts.

Central Moloney manufactures electrical transformers, and its inventory, Hart said, has grown to a point of requiring a cutback in production.

The company employs about 540 people. Its transformer plant is located at 2400 W. Sixth Ave., while Central Moloney Components is located in Jefferson Industrial Park.

“We don’t see any relief in the near future,” Hart said. “We have made a commitment in the past to build our finished goods inventory to prevent significant headcount reductions and to actually prevent this one for some period of time. Our inventories are as large as they’ve ever been, and our customers have large inventories as well.”

During 2005, at the height of transformer demand, Central Moloney employed more 750 people, Hart said.

“(That year) 2005 created the perfect storm for transformer need. You had Hurricane Katrina in August which devastated not only the industry, but also caused severe damage to some transformer manufacturing facilities that are closer to the coast line. Plus you had new housing starts at all-time levels.”

In 2007, Central Moloney had a 100 person layoff and during April this year, 40 workers were laid off. During the week of June 29, the company had a one-week shutdown of its transformer plant due to a reduction in business. Beginning also on June 29, the company had a two-week shutdown of its components plant located off of Jefferson Parkway.

“We’re heading into the slow time of the year coupled with a year when sales volumes have been drastically lower than we’re accustomed to.”

The company, Hart said, will continue to remove days from its production cycle to reduce the chances of future layoffs.

Two weeks are to be removed from November production.