The 2020 Mid-Year Economic Update_long

Global Manufacturers Announce Layoffs

A number of manufacturers have announced layoffs in the past couple of weeks, citing weakness in the global automotive, industrial and construction markets.
 
The Stanley Works announced that it would be cutting 2,000 positions, or 10% of the current employee base. It will also be closing three manufacturing facilities and eliminating certain layers of management."
 
In a news release, the company explained:
 
"During previous recessions dating back to the early 1970s, at times when the company had much higher percentage exposure to CDIY markets and customers than today, the company's physical unit volume shipments have never declined by 7% or greater for two consecutive quarters. As previously reported, the company's third quarter 2008 unit volume ...

A number of manufacturers have announced layoffs in the past couple of weeks, citing weakness in the global automotive, industrial and construction markets.
 
The Stanley Works announced that it would be cutting 2,000 positions, or 10% of the current employee base. It will also be closing three manufacturing facilities and eliminating certain layers of management.”
 
In a news release, the company explained:
 
“During previous recessions dating back to the early 1970s, at times when the company had much higher percentage exposure to CDIY markets and customers than today, the company’s physical unit volume shipments have never declined by 7% or greater for two consecutive quarters. As previously reported, the company’s third quarter 2008 unit volume shipments declined by 7% and fourth quarter unit volume shipments are now expected to decline between 12% and 14%, approximately 6 to 8 percentage points lower than previously anticipated. This outlook implies that CDIY and Industrial markets are undergoing an exceptionally severe economically-driven contraction at this time.”
 
The Stanley Works reported one bright spot -Security -which it says is holding up well and not suffering revenue and margin pressures like those seen in industrial and construction markets.
 
Some of the other companies reporting layoffs include 3M (Read 3M’s take on the situation), Dow Chemical Co., Danaher Corp., Actuant and SKF.
 
Danaher recently said that global economic conditions have deteriorated over the past several weeks, which has hurt customers and its businesses. Danaher and other global manufacturers also attribute weakness to the strengthening of the dollar, which they say has created “additional headwinds.”Danaher is cutting 1,700 net positions and closing 13 facilities. The manufacturer has also put a wage and hiring freeze in place.
 
SKF announced Dec. 10 that it will reduce its work force by about 2,500 globally due to declining demand in automotive segments and an emerging negative trend in industrial markets. SKF said that it is seeing positive signs in railway, aerospace and energy, though the growth in those areas is lower than expected.

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