CULLMAN — The economic downtown has had a major effect on Cullman County, nearly doubling unemployment and leading to numerous layoffs at local companies.

In the county, unemployment jumped from 5.1 percent last year to 9.4 percent in November of this year.

“It doesn’t matter how diverse a community or state is, this downturn is just affecting everyone,” Cullman Economic Development Director Peggy Smith said earlier this year. “We’re very distressed to see this.”

In January 2009, both Webb Wheel Products and Topre America announced layoffs affecting more than 60 people.

“These are very difficult times,” Topre America Human Resources General Manager Carl English said at the time. “The economy is really hitting every industry now. It’s almost like breaking up a family.”

Approximately 34 people were laid off from Topre America on January 16, which brings the overall total to 63 workers laid off from the Cullman plant including 2008. Approximately 285 employees remain at the automotive component manufacturer.

The downsizing was forced by the sluggish economic conditions, especially related to the automotive industry.

“As business continues to decline, we’re no different than anyone else related to the automotive industry,” English said.

English said Topre management took every effort to preserve as many positions as possible.

“We’re doing everything we can to save as many jobs as we can,” he said. “We used to have contract janitorial and security workers, but we’ve pushed those out and given them to our employees. It cost us a little more, but it saved nine jobs, so we were glad to do it.”

In Cullman’s Industrial Park II, Webb Wheel Products made the decision to layoff “a little over 20” employees, according to Kent Finkbiner, president of Webb’s OEM Trailer Business Unit.

The plant four Webb Wheel location, which manufactures wheel hubs, brake drums and rotors for heavy trucks and trailers, will soon be closed. Webb Wheel operates three other plants in Cullman, with more than 100 employees overall.

Finkbiner said the economy forced the company to make these changes to the local operations.

 “As the economy continues to head down, we’ve had to make some decisions with the OEM business unit,” he said, referring specifically to the plant four location. “We’re just going through a round of consolidations.”

In February 2009, Loparex LLC announced layoffs for more than 50 employees at the company’s 115,000 square-foot Cullman plant.

Loparex is a global manufacturer of polycoated and silicone-coated papers and films, which are used in various pressure sensitive adhesive applications. The company has been operating in Cullman since 1968.

In total, 53 of the approximately 130 jobs at the local plant are being cut.

The positions affected run the gamut from packers in the plant, to office receptionists. The majority of positions being eliminated will be coater helpers, quality assurance technicians and packers.

Loparex officials declined to directly comment on the layoffs, though the corporate office did release a statement on the matter.

“Loparex has taken actions to streamline its manufacturing operations in Cullman, Ala., due to worsening global economic conditions,” Chief Operations Officer Jack Taylor wrote in a statement to The Times. “These actions are unfortunate, but a business necessity and by no means a reflection on the loyal and dedicated Loparex employees of Cullman. Loparex considers this a private matter between its employees and it will be handled accordingly.”

In November 2009, manufacturing operations at Inland Building Systems were suspended temporarily, resulting in the loss of approximately 40 Cullman jobs related to metal manufacturing at the Cullman plant.

Approximately 15 manufacturing employees were cut this month, joining 25 workers laid off in an initial round of layoffs in April.

“Due to the slow economy, which really impacts everything, we are slowing down production at the facility,” Schulte Building Systems vice-president and controller Ronnie Peters said. “The manufacturing wing of the plant has been temporarily closed.”

Schulte Building Systems, which purchased Inland in late 2008, will move manufacturing operations to a Texas facility in the interim.

The drafting, sales and engineering operations will remain open at the Cullman location.

Once the economy eventually rebounds, Peters said Schulte plans to re-open and eventually expand the Cullman location.

“As soon as the economy shows some signs of life, we have a big renovation plan in the works that should add additional capacity,” he said. “We want to start on that as soon as we see signs the economy is beginning to turn. That facility is still a huge part of our growth plan going forward.”

The renovation project should expand the location’s workforce to approximately 150. Before the recent layoffs, the plant averaged approximately 89 employees.

“It really is a negative for those workers  in the short-term, but we didn’t have a choice,” Peters said. “We just can’t spend the money until the economy starts to turn around.”

Peters said company officials should have a better idea of when operations will resume in the coming months.

“We should have a good idea of things going forward in mid-2010,” he said.

A large, local retailer also closed in early 2009. The Cullman location of the clothing retailer Goody’s — along with most Goody’s stores across the country — closed by mid-2009.

The move was attributed to the worsening economy, which caused numerous retailers nationwide to report extremely low sales in 2008.

 Cullman Goody’s Store Manager Abe Zayed declined to comment on the closing at the time — citing company policy — though he did confirm, “We are liquidating.”

A shopper exiting the store before its closing said it would be sorely missed.

“It’s my favorite store,” she said. “Anytime I do any shopping, I do it there.”

Approximately 32 jobs were lost as a result of the closing.

Cullman Economic Development Assistant Director Dale Greer said the loss of a local employer is never easy for the economy.

“It’s always unfortunate when people are displaced,” he said. “It’s also tough for a vacancy in that shopping center, where all the businesses typically benefit from a lot (of traffic) being there.”

The Goody’s closing announcement came less than four months after the privately held retailer emerged from Chapter 11 bankruptcy protection, which affected all 287 stores of the Knoxville, Tenn.-based company, said Cathy Hershcopf, a partner at Cooley Godward Kronish LLP.



* Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 225.