Great Dane released a statement Monday afternoon confirming that there will be layoffs at their Kewanee plant within the coming weeks.
According to a statement from Jake Wallace, a member of Great Dane’s communication team in Georgia, the plan is to align the “manufacturing capacity with current market demands amid a prolonged freight recession.”
In order to accomplish that, the company intends to reduce their “workforce at certain plants most impacted by economic conditions,” the statement said.
A freight recession is a period characterized by a significant decline in the volume of goods being transported. But unlike a general economic recession that affects the entire economy, a freight recession impacts the transportation and logistics sector.
Experts say that the causes of a freight recession include economic slowdown, supply chain disruptions, changes in consumer behavior and regulatory changes. Currently, the United States is experiencing what some are calling the Great Freight Recession made worse by overcapacity, rising costs and tariff uncertainty.
The market outlook shows signs of stabilization, and analysts have expressed optimism. However, the overall freight forecast for the year remains flat with significant growth in freight demand not expected until broader economic conditions shift.
Great Dane’s statement goes on to say, “In Kewanee, we are working with the union to finalize plans, and a reduction in force will occur later this year. The number of employees impacted will be determined by market conditions and demand for our products.
“A voluntary layoff option has been offered and reviewed, and Great Dane will support all impacted employees with resources to assist in their transition.”
Great Dane is characterizing this layoff as a “temporary setback” and said they “remain deeply committed to the growth of our business and to the Kewanee community. We are determined to emerge stronger and to continue supporting our teams, the people we serve, and the communities where we live and work.”
Workers, the statement said, will be recalled as soon as possible as some economic indicators suggest the freight recession is slowing.
“However, macroeconomic uncertainty remains high.”
***Susan DeVilder and Mike Berry contributed to this report.
