Martinsville Bulletin, Inc.
P. O. Box 3711
204 Broad Street
Martinsville, Virginia 24115
276-638-8801
Toll Free: 800-234-6575
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| Nationwide Homes makes cuts |
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Tuesday, January 15, 2008
By DEBBIE HALL - Bulletin Staff Writer
A leading builder of modular single family homes is laying off about 25 percent of its Martinsville work force, company officials said Monday.
Nationwide Custom Homes, an affiliate of Texas-based Palm Harbor Homes Inc., is laying off between 70 and 80 employees in Martinsville, said Andy Miller, president of the Martinsville facility. The company is located on Rives Road.
Nationwide experienced more than a 30 percent decline in 2007 in sales in the region served by the Martinsville facility, Miller said. On a national level, the housing market experienced “a tremendous drop in 2007,” he said, and sales of modular homes followed the same trend.
The downward trend is expected to continue in 2008, Miller said, and the company is downsizing its work force because the “order rate is not sufficient.”
According to Palm Harbor Home’s second quarter report ending Sept. 28, 2007, for fiscal 2008, net loss was listed at $98.1 million compared to a net loss of $5.3 million the previous year.
Larry Keener, chairman and chief executive officer for Palm Harbor Homes, said the results “were heavily influenced by difficult industry conditions.”
The traditional manufacturing housing industry was down 23 percent through August, Keener said. Additionally, sales in the three most important manufactured housing states — Florida, California and Arizona — were down a combined 45 percent.
“The recent fallout in the subprime mortgage market has created additional pressures, as the number of defaults and repossessions continue to grow,” Keener said. “At the same time, appraisal values are declining with greater availability of lower priced, site-built homes on the market.”
Despite the layoffs, “we’re still committed to Martinsville and Henry County,” Miller said, and more than 280 employees remain with the company.
The layoffs were effective Friday, according to Tommy Rakes, production supervisor in Martinsville, with all different types of workers affected.
None of the production lines will be shut down, but production will be done at a slower rate, Miller said.
The layoff will mean a better workweek for employees not affected because it will provide more hours, Rakes said, adding that the number of hours depends on the workload.
Downturns in the housing industry are not uncommon, and Miller said he is hopeful the market will rebound this year.
As soon as the market picks back up, employees affected by the downsizing will be called back to work, Rakes said.
In addition to its 47-acre site in Martinsville, Nationwide has locations in Arabi, Ga., and Siler City, N.C.
Employees at those facilities are not affected by the layoff, Rakes said. A majority of the company’s manufacturing capacity is in Martinsville, he said.
Officials with the Virginia Employment Commission (VEC) will be on site at Nationwide today to assist affected workers, according to Hesta Anderson, work force services supervisor.
Anderson said some of the affected employees were notified Friday, and others were notified Monday.
Mark Heath said the Martinsville-Henry County Economic Development Corp. (EDC) is working with Nationwide Homes through its existing business program. He could not be more specific because discussions with the company continue, he said.
Although he was sorry to hear of the layoffs, Heath said, “I’m thankful that it’s not more than that.”
The company “will work with the employment commission any way we can” to help ensure employees receive the necessary assistance, Rakes said.
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