A sluggish national housing market has forced local manufacturers to downsize and lay off employees.

“This has been a year you love to hate and one you hate to love,” said Mike Johnson, Cox Industries CEO, one of the local manufacturers impacted by the housing crunch. “These economic times are not only about survival, but survival on your own terms. We will be well positioned when this housing economy recovers. While it is always difficult to automate a job or consolidate positions, we have a responsibility to be stewards of the business and ensure its prosperity for generations to come.”

Since 1954, Orangeburg-based Cox Industries has been a manufacturer and distributor of treated outdoor wood products. Cox operates 12 manufacturing facilities throughout the Southeastern United States and employs more than 400 people in five states.

As a result of the difficult economy, Cox has had to lay off 29 of its temporary employees since Jan. 1.

Company officials say several full-time employees have been terminated over this time period, though, officials declined providing exact numbers citing “legalities” involved in the layoffs.

“We started this consolidation process almost two years ago with the downsizing of our facility in North and continued earlier this year with the downsizing of our facility in Sumter,” Johnson said. “Our goal is to remain agile as a company during these times, not so much for the purpose of producing volume, but rather dealing with the variety of new wood-preserving products that have and will hit the market in the coming months.”

Richard Lackey, Cox Industries general counsel and director of human resources, said consolidation has been to “position ourselves for what appears to be a lean 2009.”

He said the department undergoing much of the consolidation is the sales and marketing office at Palmetto Manufacturing Co. The company, which manufactures outdoor lawn furniture, is seasonal.

“We are consolidating some of those processes and moving everybody to our one sales and marketing center,” he said, noting calls and sales were divided into furniture, lumber and industry sectors. “We wanted to have marketing all under one umbrella. We are trying to restructure and consolidate locally and expand nationally.”

Lackey said restructuring is geared toward streamlining operations but is not an indication the company is going to close.

“We are still profitable and we want to be ahead of the curve,” he said. “We are definitely profitable. We have seen competition fall by the wayside. We are in a strong financial position.”

Johnson echoed the sentiment.

“We are blessed to have a growing industrial business that has flourished during these low-interest-rate environments,” he said. “During these difficult times, we have found numerous opportunities and for that we are thankful. However, these opportunities have presented themselves in both acquisition and growth opportunities and consolidation opportunities.”

Among these have been the company’s opening of Cox Wood in Alabama as well as acquisition of Taylor Ramsey Corp. of Lynchburg, Va.

Orangeburg County Development Commission Executive Director Gregg Robinson said he is confident the downturn, which he says is normal during an election cycle though perhaps more pronounced this year due to market volatility, will bounce back.

“Many company’s have put projects on a temporary status and a holding pattern until they have a more definite direction,” he said. “But nobody is saying, ‘Gregg, we are closing or putting our business up for sale’”

Robinson said the OCDC continues to work with existing companies through work force assistance by helping in the placement of workers with other viable options in the area. OCDC can also assist employers with possible financial restructuring.

“The market is what drives that and the market is what will drive us out of it,” Robinson said, noting the OCDC is here to support companies. “We can serve as a value to other companies looking to hire new people. We have a pretty significant talent pool out there.”

And things are not all that gloom and doom, Robinson said.

“We are working on a number of existing industries on finishing up capital expenses for the year,” he said. “There are industries that continue to invest in themselves with new capital equipment.”

Orangeburg County Clemson Extension forester Beth Richardson said a number of local forest industries have gone out of business, leaving a number of foresters without work.

Richardson said textiles, which used to be king of local manufacturing, have dropped out of the picture because of increasing government regulations, demands by unions, aging plants and a period of higher taxation.

“It became cheaper to import these goods rather than make them here,” she said. “Our dollar has been strong, so it has made more economic sense to import these goods and let the factories fill with dust.”

Among industries closed over the past few years are: Kiser Lumber Co., Infinger Co., Tally Corbett Co. in Springfield and in Fairfax; Coastal Lumber in Denmark (hardwoods) and in Walterboro (pine and cypress).

“Loggers have had a tough time with delivered prices to the mills declining, gas and diesel prices rising; thus, some were forced out of the logging business,” Richardson said.

At The Okonite Co., Tom Sanchez, manager of manufacturing plant, said though the plant had to let go about eight employees three months ago, the company is operating at normal capacity.

“Like everyone else, business has dropped off a little bit,” he said, noting that with the wire-manufacturing company being in the utility market, it is impacted by the decline in the housing market. “We are still maintaining our five-day work schedule. It is the sign of the times.”

Sanchez said there are no immediate plans to restructure at the plant, which employs about 147.

“We are holding steady and moving forward and looking for ways to improve our equipment,” he said. “If there is money to be spent, we will do it.”

Orangeburg County Chamber of Commerce President David Coleman said while he has not heard of any unusual or widespread downsizing layoffs at local industries, he is not surprised that industries heavily reliant on housing, such as Cox Wood, or the automotive market are struggling.

“The market has a lot to absorb in the housing sector,” Coleman said, noting the chamber does work with all its members. “They will bounce back.”

He said the chamber aims to assist member industries -- of which Palmetto Manufacturing Company and Cox Wood Preserving are -- in a number of ways: networking opportunities, community involvement through the Orangeburg County Economic Development Partnership, a bi-monthly roundtable discussion for plant managers to discuss issues affecting industry, business referrals and continuing business education.

“We work with them as members and understand the harshness of the economic conditions,” Coleman said.

Unemployment in Orangeburg for September, the latest month for which figures are available, was 12.5 percent, sixth highest in the state.

n T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski @timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories online at The TandD.com.

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