A Variety Of Factors Leading To Sudden Business Closures
by August 5, 2012 11:28 am 129 views
Last week, there were three significant layoff announcements in a 24-hour period in central Arkansas that led to speculation and curiosity as to why.
The common denominator in layoffs involving LM Windpower, Weatherford Industries, and Hawker Beechcraft is a tough economy, but industry-specific circumstances have led to all three downsizing events.
In total, nearly 500 jobs were cut by the three company announcements.
LM Windpower's layoffs of 234 are in part due to ramped up production earlier this year, a cooling off of orders, and Congress' lack of a decision on extending a wind energy tax credit. LM Windpower makes large wind turbine blades at its Little Rock Port Authority manufacturing facility.
Drilling company Weatherford International is shutting down its Searcy office, in the Fayetteville Shale Play, due to shifting conditions in the natural gas industry. The how to increase vertical jump
href=”https://talkbusiness.net/2012/08/reports-search-natural-gas-driller-to-close/”>layoffs of 90 workers is related to long-time low gas prices, which are requiring drilling firms to shift resources to more profitable regions of the world where oil drilling opportunities exist.
And, Hawker Beechcraft's cutbacks of 170 employees at its Little Rock jet finishing center are tied to global economic conditions. Sales of the types of planes Hawker works on in central Arkansas have been depressed as potential buyers have been hit hard by long-term tough economic conditions.
Talk Business executive editor Roby Brock discussed the layoffs and the reasons behind each company announcement with Fox 16 News Kevin Kelly. You can watch the video below.