Skyline Corp. on Wednesday (March 8) suspended operations at its Elkhart, Ind., plant and laid off “the majority of the workforce” there, the latest in a series of cost-cutting measures for the Elkhart-based company, which recently returned to profitability.
The South Bend Tribune reported that in a filing with the Securities and Exchange Commission (SEC), the manufactured housing company said it was unable to profitably operate the 50,000-square-foot facility since leasing it from Forest River Inc. in June of last year.
“Despite demand from manufactured housing dealerships and manufactured housing communities, the leased facility used for production prevented daily volumes to reach and maintain profitable efficiencies,” the filing read.
Richard Florea, Skyline president and CEO, said Wednesday, “It’s not that we didn’t have the orders or the business or the customer base. It’s that in a leased facility, it did not allow us to produce a high enough volume to achieve operational efficiency.”
Florea said Skyline has taken steps to ensure the 90 or so employees affected by the move are not without work, offering them jobs at other Skyline facilities in Wisconsin or Ohio or connecting them with other job opportunities.
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