Phoenix Metro Area Manufacturing The
Total Page：16
File Type：pdf, Size：1020Kb
INDUSTRY UPDATE Biweekly Period Ending July 28, 2001 Phoenix Metro Area and semiconductor business. Manufacturing Citing reduced demand and lower prices for its car-safety products, TRW eliminated 100 po- The bleeding continues in the beleaguered sitions (through attrition) in mid-July at its two high-tech industry, as companies an- Mesa plants. The job cuts are part of an over- nounced more layoffs, possible sale of opera- all cost-cutting strategy announced in March tions, and poor earnings results. In a cost- that would eliminate 1,000 positions world- cutting move, Tempe-based Three-Five Sys- wide. As part of the realignment, TRW is con- tems plans to move a production line from solidating its two Mesa plants into one Arizona to Asia by the end of the year, elimi- operation at 11202 E. Germann Road. TRW nating about 30 Valley jobs. Three-Five expects the process to be completed in 2002. produces liquid crystal displays for cell Another transportation-safety company, Good- phones and other high-tech devices. … rich Corp., expects to see “inflation” in its em- Amkor Technology, which previously laid ployment after securing a major contract. off about 10 percent of its Chandler research Maker of evacuation slides for planes, Good- and sales workforce of 450, reported signifi- rich was awarded a $300 million contract to cant losses in the second quarter of 2001 design and build inflatable slides for the and hinted at possible further cutbacks. French Airbus A380 double-deck airliner, ex- West Chester, Pa.-based Amkor is the world’s pected to begin flying in 2006. Goodrich’s Air- largest semiconductor packaging and testing craft Evacuation Systems facility at Broadway company. … ON Semiconductor, which Road and 7th Street in Phoenix, which employs also had major losses in the second quarter, 320 workers, is expected to add 40 more said 1,500 additional job cuts worldwide people because of the contract. will be made over the next year, bringing to 3,000 the number of job cuts announced Minneapolis-based PW Eagle Inc., which since June. ON, which makes microchips makes PVC pipe and polyethylene products, used in a variety of consumer products, will is temporarily shutting down its opera- let go several hundred workers at its tions in Phoenix due to a slowdown in Phoenix plant (52nd Street and McDowell business. PW Eagle, which has 10 U.S. manu- Road). ON was created out of a former facturing plants, is closing a Hillsboro, Ore., Motorola Corp. analog circuits division in facility and laying off more than 100 workers 1999. … Speaking of Motorola, it’s expected throughout its entire operations. No informa- that the Schaumburg, Ill.-based company will tion was available on the number of Phoenix announce in the next few months if it will employees affected. sell its military communications unit in Trade Scottsdale to L-3 Communications Holdings Inc. Suffering one of its worst financial years The opening and closing of several furni- in 2000, the world’s second largest maker of ture chains in the Valley highlight a number mobile phones is attempting to sell the de- of developments in the retail trade sector the fense-products unit to shore up its debt and past two weeks. Starting with the good news, to refocus the company on its cellular phone an upscale Danish furniture maker catering to the 25- to 40-year-old age group, Bo Con- where the Valley has a major presence, such cept, will open two stores in the Valley as business travel and technology. No in- (Scottsdale in October; Chandler in March formation is available on how many positions 2002) over the next nine months. The com- will be affected locally. pany — which has 85 stores in 19 countries, Among health care news items, another nurs- but only four locations in the U.S. — uses ing center is going out of business, while a computer 3D software to help design rooms west Valley hospital plans a major expansion. with its sleek, modern furniture. Two other Good Samaritan Regional Medical Center furniture chains with a major Valley pres- is closing a skilled nursing-care facility on ence, however, have filed for Chapter 11 its downtown campus that employs about bankruptcy protection. Tempe-based Sun 100. Officials cite financial problems due to Valley Waterbeds, parent company of Bed- lower Medicare payouts by the federal gov- room Superstores, and California-based ernment as the major reason for the closure. Krause’s Custom-Crafted Furniture, for the Good Samaritan will attempt to place laid-off time being expect to keep open their workers at other Valley operations. … How half-dozen Phoenix-area stores while liquidat- quickly fortunes can change. Only a few ing less profitable stores out of state. How- years ago, John C. Lincoln Hospital – Deer ever, if the chains don’t come up with an Valley (Interstate 17 and Loop 101) was on approved reorganization plan, they may be the verge of bankruptcy. But fast population forced to liquidate their local operations. … growth in the north Valley has led to recent New Jersey-based Burlington Coat Factory strong revenue growth, so the hospital an- will open three outlet stores at Valley nounced it will double its bed size to nearly malls this fall. Burlington will replace a 200 as part of a $30 million expansion. Montgomery Ward at the Desert Sky Mall in Construction will begin in 2003. west Phoenix and open two stand-alone op- erations — at Superstition Springs Mall in Mesa and Paradise Valley Mall in north Phoe- Tucson Metro Area nix. … One shopping center that isn’t think- Trade ing of expanding is Fiesta Mall, which has been put up for sale less than a year after a Park Place Mall plans to open a remodeled major remodeling by its owner, L&B Realty food court, a 20-screen movie theater, and Advisors in Dallas. Competition from newer several retail stores the early part of Au- malls and power centers in Scottsdale, gust. Housed in several buildings that are Tempe, and Chandler is a major reason for reminiscent of a Spanish marketplace, the the sale of the 1.1 million-square-foot mall at food court will feature about a dozen eateries, U.S. 60 and Alma School Road. while a Sam Goody music store across a courtyard will sit next to the Century 20 Services Park Place movie complex. The food court American Express Co., which has more and theater upgrades are the second phase of than 9,500 Valley employees, will eliminate a $50 million-plus improvement project for 4,000 to 5,000 jobs worldwide beginning in the mall, formerly known as Park Mall. Previ- the third quarter of 2001 as part of a com- ously, the interior and exterior of the mall pany-wide reorganization plan. The cuts were remodeled. come on top of plans announced earlier this Payless Cashways closed a store in Marana year to eliminate 1,600 positions. American (6421 N. Thornydale Rd.), laying off 35 to Express, which had a 76 percent drop in 40 workers, as part of a company-wide reor- over-the-year earnings in the second quarter ganization plan. Payless Cashways, which of 2001, will target the newest cuts in areas closed 39 stores nationally, filed for Chapter Industry Update (Cont.) Biweekly Period Ending July 28, 2001 11 bankruptcy protection in early June. Prior manufacture the rubber core of its golf balls to the reorganization, the hardware and build- at the Payson plant, then finish the process ing-supply chain operated 110 stores under (applying an outer coat) at its Mesa facility. the names Payless Cashways, Furrow, Lum- Average starting pay for Payson employees berjack, and Hugh M. Woods in the central will be around $9 an hour, plus full health in- and western parts of the country. surance, the company said. Services Services The Tohono O’odham Nation was expected About 100 telephone sales workers in to open a new $52 million, 185,000-square- Lake Havasu City lost their jobs when foot casino and entertainment complex in creditors of its parent company, Epic Re- late July that will add 700 workers to its sorts, filed for Chapter 7 bankruptcy current workforce of 800. Called Desert Dia- protection. Epic Resorts owns time-share mond, the complex on Pima Mine Road east properties in Lake Havasu City (London of Interstate 19 features 1,500 slot machines, a Bridge Resort), Scottsdale (Scottsdale Links 2,000-seat auditorium that doubles as a bingo Resort), and several other cities around the hall, 30 poker tables, meeting rooms, and res- country. Other employees at Epic’s properties taurant. The Indian nation’s older gambling were not affected by its creditors’ bankruptcy. operation on Nogales Highway, also known at Desert Diamond, will become strictly a slot Statewide machine operation. Average annual pay for the tribe’s gaming workers matches Pima Government County’s average, about $24,000. Two Air Force bases in Arizona are expected Miscellaneous to pick up about 80 military and civilian personnel in October. According to U.S. The Pima County Workforce Investment Senator John McCain, Davis-Monthan Air Board debuted a web site for job seekers Force Base in Tucson will gain 65 airmen, and employers in late July. The opening of while Luke Air Force Base in Glendale will pimaworks.com, which features job listings, skills assessment, training information, and other resources, comes at an appropriate time, UPDATE when unemployment is on the rise in Tucson INDUSTRY and other areas of the state. For example, in Tucson several optics companies recently Industry Update is produced biweekly as a stand-alone closed, eliminating 150 jobs, and a plastic-in- publication and quarterly as part of Arizona Economic jection molding manufacturer (Plastic Mold- Trends by the Arizona Department of Economic Security, ings) closed up shop recently after opening a Research Administration.