A press release recently issued by the Spartan Light Metal Products firm indicates that the company continues to contend with slowing macroeconomic trends, resulting in corresponding corporate business decisions impacting its workforce, including at its Mexico, Missouri facility.

"The overall weakness in the U.S. economy, higher gasoline prices and lower consumer spending have caused Spartan's customers to make dramatic changes in their order patterns," states the release, which was issued from the office of Philip Zampogna, the firm's vice president of human resources.

Dated July 29 – but received after presstime on Thursday – the release further states: "We are forecasting these dramatic changes to continue through 2008. Although we have a diversified customer base within the automotive and commercial sectors, these broader economic trends continue to affect sales volumes across all customers. As a result we are 're-sizing' our workforce to match our employment needs with the expected lower sales volumes of our customers."

The release continues: "As a result, Spartan Light Metal Products will experience a limited reduction-in-force involving both hourly and salaried employees.
Communication to affected employees began the week of July 28 with an effective date for reductions of, on or before August 1, 2008. Although we hope that these adjustments may be temporary in nature, it is difficult to predict with certainty the length of these actions in the current market environment. Spartan continues to be a strong and valued supplier to its customers through its engineering and manufacturing expertise and financial prudence. We remain committed to our employees, their families, as well as the communities in which we operate."

Contacted for further details, Zampogna emphasized that the employee workforce reduction is occurring company-wide, confirming that the current round of self-termed "re-sizing" includes the Mexico facility. However, the company official said he could not specify an exact number of employees at the Mexico operation impacted by the most recent workforce reduction.

The announcement follows a prior employee reduction occurring in June at the Mexico facility, which employed approximately 250 individuals at the start of the year. Commenting in early July, Zampogna stated approximately 30 individuals had been notified of at least temporary lay-off status. At that time, Zampogna stated: "A week or so ago, one of our larger customers that is serviced from that plant – Ford – called down the orders on one of the parts that we make for their F-150 pickup trucks. It was kind of a substantial call-down" (i.e., scale back).

Terming itself an "industry leader in both aluminum and magnesium die castings," the firm services a wide-range of industries, including power tool and electronics components manufacturers. However, it is also largely dependent upon auto-related business, and in recent months, that industry – especially domestic carmakers – has been in turmoil. Firms such as General Motors Corporation and Ford Motor Company are attempting to transition from production emphasis on larger vehicles such as SUVs and pickup trucks toward more fuel-efficient vehicles to accommodate customer demand, especially in light of high per-gallon gas prices. However, adapting and altering corresponding manufacturing facilities can take several months.

Meantime, other macroeconomic concerns continue to weigh, ranging from increased unemployment to weakened customer purchasing power to stagnant wages to across-the-board commodity inflation. The result is further erosion of bottom-line revenue of myriad consumer-oriented businesses, including automotive firms such as GM and Ford, and thereby causing residual impact on many corresponding suppliers, such as Spartan.

"Many of these things are completely out of our hands," noted Russell Runge, economic development director and assistant city manager for city of Mexico. "There are broader economic conditions affecting the whole country right now, but we continue to plug away and work hard to lay the groundwork for future economic growth in the community."

Locally, that could potentially include a face brick manufacturing facility, and a plant science research center and its residual businesses. However, the processes involved in business development – loans, tax incentives, government inducements, etcetera – can be lengthy, further exacerbated in a period of economic downturn when investment caution prevails.

"We continue to work to promote and advance economic growth for the community despite a tough economic environment," summarized Runge.