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Money matters: Economic futures
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| H&N photo by Ty Beaver Buckley Lokey checks the dimensions on patio door parts during his shift at Jeld-Wen. The moulder operator is one of about 1,500 people employed by the window and door manufacturer in Klamath County. |
Basin employers reassess, reposition
By TY BEAVER
H&N Staff Writer
About 60 Klamath Basin residents joined the unemployment line last week when Columbia Plywood announced layoffs.
The announcement was the latest in a series of layoffs throughout Klamath County as employers faced financial pressures from a yearlong economic slowdown.
Sky Lakes Medical Center was forced to close three smaller departments, laying off workers. CEO Rod Wendt says Jeld-Wen cut employee hours and reduced shifts, and the company laid off about 30 employees from its Klamath Falls headquarters.
But Klamath Community College this fall recorded its highest enrollment numbers ever, and officials at customer services provider NEW say the company is going strong, yet acknowledge increased economic pressures on its employees.
Different responses
The economic slowdown this year and financial crisis on Wall Street required different responses from Klamath Basin employers. Most are positioning themselves the future when business picks up.
“You can’t always know or predict what’s going to happen, but you have to be able to react to it,” said Mark Slezak, raw materials manager at Columbia Plywood.
The downturn in the housing market has particularly hurt businesses that produce building materials. Others also are feeling the crunch.
Tom Hottman, spokesman for Sky Lakes Medical Center, said the hospital’s equities suffered when the stock market tanked, making budgets even more razor thin.
Officials with the Klamath Tribes said Kla-Mo-Ya Casino is financially solvent, but a planned expansion is being considered day-to-day because of the tight credit market.
Higher education
Those in higher education are seeing a benefit from the downturn.
KCC and Oregon Institute of Technology have enrollment increases above projections for the fall 2008 term. Officials attribute the rise to recently laid-off workers seeking to improve their skill sets before re-entering the workplace.
Others are weathering the storm.
Aaron Feinberg, director of operations for NEW, said his company doesn’t expect to reduce its more than 500-employee staff. John Dutton, sales manager at manufacturer MCX, Inc., said the company has seen increased demand for its products as buyers look to stay domestic.
Strategies
Jeld-Wen’s marketing, which includes television and trade advertising and sponsoring of golf tournaments, will continue, but on a reduced scale for now, officials said.
“You’ve got to hunker down,” CEO Wendt said.
Slezak said Columbia Plywood plans to aggressively promote the company to get business. Dutton said MCX would make more phone calls and personal visits with potential clients to get orders.
Sky Lakes
Sky Lakes will continue with the marketing plan it developed after opening its new wing in May 2007 while also advocating the hospital’s diverse offerings for the Klamath Basin.
“Just because we’re not Medford and not Bend doesn’t mean we don’t have cool stuff,” Hottman said.
NEW is considering measures to limit economic impacts to its employees, such as putting employees on four-day workweeks to reduce commuting costs. Educational institutions plan to up their offerings and recruit students more aggressively.
“Our way of influencing the economy is to produce good graduates,” said Bob Nettles, vice president of finance at OIT.
Despite the tough economy, companies don’t deny there’s opportunity.
Cyclical trends
Wendt and Slezak said the housing and building markets have historically cycled up and down, and they expect the trend to go up again in the future.
A growing elderly population ensures a continuing need for health care in the region from Sky Lakes. KCC and OIT officials are either planning building projects or seeking support to expand. The Klamath Tribes are pursuing development of a green energy park that will have some manufacturing capabilities.
Dutton said part of his philosophy is to not focus on the current crisis and just push to find customers.
“I think if we stay focused and stay on track, I see growth,” he said.
Read more about how local businesses are approaching the economic slowdown in Sunday's print edition of the Herald and News.
The announcement was the latest in a series of layoffs throughout Klamath County as employers faced financial pressures from a yearlong economic slowdown.
Sky Lakes Medical Center was forced to close three smaller departments, laying off workers. CEO Rod Wendt says Jeld-Wen cut employee hours and reduced shifts, and the company laid off about 30 employees from its Klamath Falls headquarters.
But Klamath Community College this fall recorded its highest enrollment numbers ever, and officials at customer services provider NEW say the company is going strong, yet acknowledge increased economic pressures on its employees.
Different responses
The economic slowdown this year and financial crisis on Wall Street required different responses from Klamath Basin employers. Most are positioning themselves the future when business picks up.
“You can’t always know or predict what’s going to happen, but you have to be able to react to it,” said Mark Slezak, raw materials manager at Columbia Plywood.
The downturn in the housing market has particularly hurt businesses that produce building materials. Others also are feeling the crunch.
Tom Hottman, spokesman for Sky Lakes Medical Center, said the hospital’s equities suffered when the stock market tanked, making budgets even more razor thin.
Officials with the Klamath Tribes said Kla-Mo-Ya Casino is financially solvent, but a planned expansion is being considered day-to-day because of the tight credit market.
Higher education
Those in higher education are seeing a benefit from the downturn.
KCC and Oregon Institute of Technology have enrollment increases above projections for the fall 2008 term. Officials attribute the rise to recently laid-off workers seeking to improve their skill sets before re-entering the workplace.
Others are weathering the storm.
Aaron Feinberg, director of operations for NEW, said his company doesn’t expect to reduce its more than 500-employee staff. John Dutton, sales manager at manufacturer MCX, Inc., said the company has seen increased demand for its products as buyers look to stay domestic.
Strategies
Jeld-Wen’s marketing, which includes television and trade advertising and sponsoring of golf tournaments, will continue, but on a reduced scale for now, officials said.
“You’ve got to hunker down,” CEO Wendt said.
Slezak said Columbia Plywood plans to aggressively promote the company to get business. Dutton said MCX would make more phone calls and personal visits with potential clients to get orders.
Sky Lakes
Sky Lakes will continue with the marketing plan it developed after opening its new wing in May 2007 while also advocating the hospital’s diverse offerings for the Klamath Basin.
“Just because we’re not Medford and not Bend doesn’t mean we don’t have cool stuff,” Hottman said.
NEW is considering measures to limit economic impacts to its employees, such as putting employees on four-day workweeks to reduce commuting costs. Educational institutions plan to up their offerings and recruit students more aggressively.
“Our way of influencing the economy is to produce good graduates,” said Bob Nettles, vice president of finance at OIT.
Despite the tough economy, companies don’t deny there’s opportunity.
Cyclical trends
Wendt and Slezak said the housing and building markets have historically cycled up and down, and they expect the trend to go up again in the future.
A growing elderly population ensures a continuing need for health care in the region from Sky Lakes. KCC and OIT officials are either planning building projects or seeking support to expand. The Klamath Tribes are pursuing development of a green energy park that will have some manufacturing capabilities.
Dutton said part of his philosophy is to not focus on the current crisis and just push to find customers.
“I think if we stay focused and stay on track, I see growth,” he said.
Read more about how local businesses are approaching the economic slowdown in Sunday's print edition of the Herald and News.
Reader Comments
The following are comments from the readers. In no way do they represent the view of HeraldAndNews.com. Comment Disclaimer: The editors of heraldandnews.com reserve the right to refuse publication of any comment posted for consideration. We may refuse for any reason, including use of profanity, disparaging comments, libelous comments, etc. Any reader who notices a comment they believe is particularly offensive, should notify us at webmaster@heraldandnews.com.
peterw wrote on Oct 5, 2008 9:12 PM:
" Now I'm going to have to live over in Medford during the week, come home on weekends. Just for a $10.00 an hour job ! It's absurd, makes me want to go back to California.......no problem with that ! "
dc wrote on Oct 5, 2008 7:54 AM:
" Two concerns in reading this article:
1) How are the student enrollment numbers from KCC measured? yes, it is nice to say that enrollment is up - but how many of those are in a full-time program? I signed up for a 2 hour seminar, and had to go the same registration as someone taking a full time course load. So - I would be careful of believing that every "student" reported is in a degree program.
2) The above article also mentions a growing elderly population. How does that set with Sky Lakes eliminating programs and departments that deal with those on Medicare? Seems that puts the hospital at odds with what we all know is a reality as Baby Boomers hit retirement age.
Things to consider . . . . . "
1) How are the student enrollment numbers from KCC measured? yes, it is nice to say that enrollment is up - but how many of those are in a full-time program? I signed up for a 2 hour seminar, and had to go the same registration as someone taking a full time course load. So - I would be careful of believing that every "student" reported is in a degree program.
2) The above article also mentions a growing elderly population. How does that set with Sky Lakes eliminating programs and departments that deal with those on Medicare? Seems that puts the hospital at odds with what we all know is a reality as Baby Boomers hit retirement age.
Things to consider . . . . . "
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who-knew wrote on Nov 10, 2008 7:34 AM:
As an anonymous witness to a 30% staffing reduction due to layoffs in the workplace, my view of the world is not through the window of a private jet. Employees are expected to give two weeks notice when leaving their jobs and in many cases are required to do so, in order to be paid for unused accrued vacation. Unfortunately the "Gone in 60 Seconds" layoff notice does not afford the same courtesy to the employee. It may be "just a business decision", but what good are generals if you don't have foot soldiers? "