Pella Chronicle

November 16, 2011

Prolonged housing recession claims more jobs

The Chronicle

Pella — Pella Corporation today announced that 198 people will be separated from its workforce. A result of the prolonged housing economy recession, the move will align the just-in-time manufacturer’s workforce size with business needs and projections for an ongoing weak outlook for construction activity.

“Low consumer confidence, tighter access to home loans, and the volatile U.S. economy continue to hamper the American housing economy, said Pella spokesperson Kathy Krafka Harkema.

Workforce reductions were announced at Iowa manufacturing locations in Carroll, Sioux Center, Shenandoah and company headquarters and manufacturing operations in Pella, Iowa, as well as a manufacturing site in Portland, Ore. On Oct. 27, Pella first offered team members at those locations the chance to retire or voluntarily leave the workforce, in return for incentives for doing so in 2011.

“Pella has used a variety of creative approaches like furloughs and incentives for team members to voluntarily leave the workforce to help keep as many people at work in an extremely volatile time for those in construction-related industries,” Krafka Harkema said.

Also on Oct. 27, the company also announced it will close its West Columbia, S.C. vinyl window manufacturing site by December 30. That site now employs 145 people.

To assist team members impacted by the latest workforce reductions, Pella is partnering with state and area officials to help those displaced as they pursue new careers.