Peterbilt
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DENTON - Peterbilt Motor Co. - Denton's largest private-sector employer - announced it will lay off a small percentage of its 2,000-employee workforce effective Jan. 26.
The layoffs will mirror a reduced truck build rate due to economic conditions, affecting less than 172 workers, said Robin Easton, treasurer of Peterbilt's parent company, PACCAR Inc.
"We only build [trucks] to order, and we will match the demand of the market," Easton said. "The driving factor [of the layoffs] is the economy."
Easton would not disclose the exact number of employees to be laid off or their severance terms.
PACCAR's four plants in the United States have all been affected by the economy, Easton said.
It is a sign that what's happening to the national economy - consumers not spending as much money - has trickled down to Denton, said Linda Ratliff, economic development director for the city.
"I'm not really surprised [Peterbilt] is going through this right now because of the economy," Ratliff said. "I'm sure they waited as long as they could."
Ratliff, who has been around Peterbilt and the local business community for 19 years, said the truck manufacturing business is cyclical and will likely return to hiring again.
Truck build rates also have trickled down to local plants of manufacturers such as Alcoa - an aluminum wheel manufacturer that provides parts to large truck manufacturers like Peterbilt.
Alcoa announced last week that it would cut about 13 percent of its global workforce. But the Denton office hasn't laid off any of its employees, said Mike Cooper, a company spokesman.
"There are no anticipated layoffs, but there are adjustments of the number of hours worked due to a reduction in customer orders," he said.
Peterbilt isn't the only local manufacturer to announce layoffs in recent months, keeping company with Victor Equip ment and Trinity Industries Inc.
Last Thursday, 100 of the 500 employees at Victor Equipment in Denton were let go.
About 20 of Victor Equipment's 200 Roanoke division workers also were laid off. Officials cited economic conditions as the reason behind the workforce cuts. The company makes gas welding, cutting and soldering tools and equipment.
In mid-November, officials with Trinity Industries announced plans to close its Denton plant this month, laying off 75 employees.
The plant, a division of Trinity Tank Car Inc., first came to Denton in 1967, according to records from the Denton Chamber of Commerce. Records show it converted its Denton manufacturing plant from railcar to highway bridge girder production in 1999.
Peterbilt announced its 300,000th truck built last month and has been part of the Denton business community for almost three decades.
Denton Record-Chronicle staff writer Dawn Cobb contributed to this report.
