Workers notified of big layoffs at Andersen Corp.

[OhioChick]

Posted on Wed, Dec. 06, 2006
Associated Press

BAYPORT, Minn. - Workers at Andersen Corp. said they've been notified that the window and door maker will lay off more than 400 workers by the end of the year.

Workers leaving after an afternoon shift at the plant Tuesday told reporters they were informed that everyone hired since February 2000 would be laid off, and several said their last days on the job would come before the end of the month.

Andersen - the world's largest maker of wood windows, patio doors and storm doors - employs more than 9,000 people worldwide, including its Bayport window and door factory, according to a corporate profile posted on its Web site. Annual revenue at the privately held company has been estimated at more than $2 billion.
http://www.mercurynews.com/mld/mercurynews/news/breaking_news/16171688.htm

[ixion]

1. as housing starts continue to fall, we'll see alot more of this

in this sector.

It's the equivalent of what happened in the up-scale service industry when the dot com bubble burst.

[mohinoaklawnillinois]

2. Not a good sign, IMHO, but Bush still keeps blathering on

about how "great" the economy is.

Yeah right, Bubble Boy George..

[Joe Bacon]

7. Remember, the Pigboy says the economy has NEVER been better.

And Pigboy will blame this on Nancy Pelosi!

[mohinoaklawnillinois]

8. Pigboy can blame this all he wants on Nancy Pelosi, but

bottom line he's lying once again.

My husband's business is directly tied to the home construction business and believe me we've felt the "pinch" all year. He hasn't made as much money this year as he had in the past.

Contractors are cutting back and have been for a while. Most of the builders we know are just hoping to sell what they've got on the market right now. They're not even talking about next year.

[Solo_in_MD]

9. Hopefully you are not in the Wash DC area

It was on the news this AM that several of the bedroom community counties have instituted bans on new housing tracts due to issue with transportation.

[mohinoaklawnillinois]

13. No we live in near-in SW suburb of Chicago, but the new housing market

in the Chicago area is slowing down big time.

[ClintonTyree]

3. Another sign that the housing bubble has burst

sliding new home sales, nobody needs doors and windows. Happy Holidays from Anderson Corporation!

[acmejack]

4. Must ensure the blessings of the Season fill those households

So touching.

http://www.forbes.com/lists/2006/21/biz_06privates_Andersen_OAE3.html

#94 largest Privately held company with Revenues +20%

I couldn't find "Jim's" salary information for some reason.

[dflprincess]

15. In the past, Anderson has shared the profits their employees

Normally, this time of year the local media would be reporting on the bonuses their employees were getting. If I recall correctly, the amount of the bonus was based on length of service+salary. I know there have been many times when I've heard what their bonuses were and wished I worked there.

[smirkymonkey]

5. Why do they always pull this crap right before the holidays?

[Sherman A1]

6. It is the end of the calendar year as well

which many businesses still use as their fiscal year. Just an explanation... I think it sucks and is exceptionally cold hearted.

[customerserviceguy]

23. On the other hand

it is better to let people know in early December before they spend a lot of money on Christmas, rather than in January, when the credit card bills come in...

I know, I've been there, and done that, when I worked in the title insurance industry and they cut us back.

[Tandalayo_Scheisskopf]

10. Talked to a life-long Real Estate Agent.

She is leaving the business. Sales are non-existent in this neck of the woods in NJ and the future prospects suck.

When it came to Real Estate, she was once the biggest cheerleader there was.

[kickysnana]

11. 3M announced about 350 layoffs a couple days ago. nt

[newyawker99]

17. Hi kickysnana!!

Welcome to DU!! :toast:

[sweetheart]

12. Their products are too expensive

I looked in to Anderson windows, and they're not worth the premium, IMO... or perhaps
all those deep pockets builders who don't care a few thousands extra for a sweetheart
deal, haven't minded until now when a recession is chomping on that extra spend.

Its too bad that there are not more manufacturers of construction glazing who are
smaller and more diversified... this is the problem with the monopolist economy, when
the monopolist has trouble, the internal issues of the company become a public concern
as there is not enought effective competition. Why is that? Concentration of wealth.

The path of wall street merger wealth concentration makes for a weak economy,
andersen windows illustrates.

[llmart]

14. Me too.

Went with Pella for $1500 less.

[lindisfarne]

18. IIRC, Andersen is a company that treats its workers quite well - good benefits, good policies, good

wages. But even a good company can't keep paying workers if its products aren't being sold.
But if I were in the market for windows, I'd be happy to pay a premium to a company that treats its workers well.

[brentspeak]

22. Same here

[LiberalFighter]

21. I just got Anderson windows installed last week Tuesday

Went with them after comparing with having windows from Menards installed by a contractor. Only a few dollars difference. They had an advertised sale and then there were discounts for deciding to buy that day and paying cash/credit.

I believe their advertised sale has been ongoing for a while and still doing it.

[phantom power]

16. Looks like we're going to soon find out how much of our economy...

was floating on the housing bubble. Bad bad bad.

very bad.

[Vinca]

19. I'm no economist, but I've been near the real estate business for

more than 30 years and IMHO this is just another cycle. It's happened before. The housing market goes up, the housing market goes down. Everyone panics. Eventually it goes back up. This is not to say people don't get hurt along the way. They do. It never makes sense to take out interest only mortgages or finance the entire cost of your home. As for the Andersen employees, I'm smelling the onset of more outsourcing rather than a permanent layoff due to a "housing bubble" bursting.

[sendero]

20. I would agree with you...

... but there is an important difference this time. Downturns used to be related to normal boom and bust cycles that are an inherent part of capitalism.

This time, the down cycle is going to be aggravated greatly by the monkey-business financing that has gone on widely in the last few years. In the past, even when houses dropped 5%-10% in value, most folks were not upside-down. That is not going to be the case this time.

It's hard to convince a man who is struggling financially to keep making payments on a house that is worth less than he owes on it. Lots of these folks are going to mail in the keys. Each foreclosure add more pressure to prices. It COULD be (won't necessarily be) a death spiral.

We'll have to wait and see.