What's Happening?
Springfield-based 9Wood, a manufacturer of suspended wood ceilings for commercial construction, has laid off 18 employees, marking the second round of layoffs this year. This reduction accounts for about
9% of the company's workforce. Earlier in January, the company had laid off approximately 20 employees, which was about 7% of its workforce at that time. The company is transitioning to a new manufacturing approach called Custom Made Fast, which aims to standardize the process of balancing design desires with construction timelines. This strategic shift is intended to enhance the company's competitiveness by reducing the need for project-level engineering and subject matter experts.
Why It's Important?
The layoffs at 9Wood highlight the challenges faced by manufacturing companies in adapting to changing market demands and economic conditions. By shifting to a more standardized manufacturing process, 9Wood aims to improve efficiency and meet the increasing demand for speed and predictability in architectural projects. This move could potentially position the company to better handle national economic forces, such as rising interest rates and office vacancies, which affect its operations as over 90% of its projects are shipped outside Oregon. The decision to lay off employees, while difficult, reflects a broader trend in the industry towards automation and standardization to remain competitive.
What's Next?
9Wood's strategic shift to the Custom Made Fast approach is expected to continue as the company seeks to strengthen its market position. The company will likely focus on refining its manufacturing processes and exploring new market opportunities. Stakeholders, including employees and clients, will be closely monitoring the impact of these changes on the company's performance and its ability to deliver on its commitments. The company's commitment to providing severance pay and support to affected employees may help mitigate some of the immediate impacts of the layoffs.
