 James Malvaso: strategic decision |
Raymond Corp will idle a plant in Canada impacting 250 workers and move assembly of its Reach-Fork forklift line to the Greene headquarters, creating more than 100 jobs.
Raymond plans to move the equipment and complete the transition by 31 March, with government funding providing some financial support.
The consolidation will shut down the Raymond operation in Brantford, Ontario. The site opened in 1966, at one time had 575 employees and is slated for closure for an undetermined period.
"Raymond has made the strategic decision to consolidate all of its Class 2 lift truck manufacturing to support the healthy future of the company and its more than 1,800 employees," says James Malvaso, Raymond president and chief executive officer. "This change allows us to continue developing innovative solutions that best serve our customers and their needs. Every employee in our Brantford operations has been an incredible asset. . . . This decision did not come easily, and we thank them for their many contributions." Raymond intends to supply severance packages to the workers, who learned of the idling plans on18 September in advance of a scheduled one-week shutdown.
Raymond says the North American forklift market decline and a need to optimise engineering and manufacturing efficiencies prompted the decision to mothball Brantford. Raymond cites Industrial Truck Association statistics that indicate a decline of 60% in the overall forklift market since 2006.
Raymond subsidiary GN Johnston Equipment Co Ltd of Mississauga, Ontario will maintain the Raymond brand's presence in Canada through 13 locations. The subsidiary also represents BT-brand materials handling equipment and Remstar International Inc systems such as shuttle vertical lift modules and vertical and horizontal carousels.
The Greene facility performs design, engineering and prefabrication of the Reach-Fork trucks now and will gain the assembly function.
During a 21 September press conference at Raymond headquarters, officials disclosed USD3 million in funding to Raymond from State of New York agencies.
The state department of economic development, known as Empire State Development (ESD), awarded a USD2.25-million grant to Raymond, and the state office of community renewal earmarked USD750,000 for a community development block grant.
"During our conversations with Governor David Paterson, he made it clear we were to exhaust all our resources and abilities to ensure the retention and growth" of Raymond in Greene, says Dennis M Mullen, ESD chairman and CEO designate pending state senate confirmation. "As the largest employer in the area, it was critical that the company remain in the southern tier, securing the region's stability through job creation and business investment dollars. As a steward of taxpayer dollars, ESD pursues the largest return on our investment. This project has resulted in a successful public/private partnership that will secure the company's future in Chenango County and leverage economic prosperity in our state."
Apparently, Raymond considered other locations such as Indiana for consolidation of its manufacturing facilities.
"We're pleased that Raymond is bringing more jobs to Greene," says State Senator Thomas W Libous of the 52nd district. "We're glad to have these new job opportunities."
State Assembly Member Clifford W Crouch of the 107th district says: "I am pleased that Raymond has chosen to expand operations here. . . . I am grateful for their decision and stand ready to support them however I can."
Libous and Crouch are Republicans in the Democrat-dominated state legislative chambers.
Malvaso, Mullen, Libous and Crouch participated in the hour-long morning press conference.
Raymond Corp has roots back to 1922 when efficiency engineer George G Raymond Sr purchased a foundry and embarked on creative mechanical ways to handle materials. Early developments included a hydraulic hand lift truck for handling skid platforms, a hand lift truck for transporting double-faced pallets and, later, a narrow-aisle lift truck.
The Greene facility makes electric counterbalance forklift trucks, swing-reach trucks and order-picker trucks. Among production units, 90% are built to meet a customer's custom configuration requirements. Manufacturing processes include machining; fabrication including laser and plasma cutting; robotic welding; painting and just-in-time assembly.
BT Industries AB of Linköping, Sweden, now operating as Toyota Industries Sweden AB, acquired Raymond Corp in 1997. Toyota Industries Corp of Kariya, Japan purchased BT Industries including Raymond in 2000. Raymond operates as part of the Toyota materials handling group.
In North America, 31 Raymond dealers provide services through 108 locations, and other Raymond dealers operate in Central and South America, Australia and the Middle and Far East.
In addition to the Greene headquarters and operations, Raymond has ongoing operations in a Muscatine, Iowa facility for manufacturing of Class 3 lift trucks and a Syracuse, New York site for parts distribution.
Meanwhile, since 8 September, all Raymond facilities are designated as tobacco-free campuses in line with the company's employee wellness program.
Beginning in February, Raymond sponsored several tobacco-quit programs for its employees. "Having a tobacco-free campus promotes a healthier environment for all Raymond employees and the many visitors that come to our facilities," says Steve Van Nostrand, Raymond vice president of human resources.