Goodyear announces temporary shut-down of division
Originally published 11:31 a.m., March 5, 2008
Updated 05:35 p.m., March 5, 2008
Experts say America’s weak economy has taken a direct hit to Topeka's workforce.
A portion of Topeka's Goodyear plant is shutting down for six days during the Easter holiday, a spokeswoman said.
The plant will reduce the medium radial truck tire production; those tires are primarily used for semi trailer-trucks, which have dropped in sales, said United Steelworkers of America Local 307 President Robert Tripp.
Company statement
"In an effort to match production levels with customer requirements in the commercial truck business, Goodyear Topeka will be reducing Medium Radial Truck production for six days in conjunction with the Easter holiday.
The Topeka plant will continue to run normal operations to support the Off-the-Road and Military tire markets during that period.
This temporary production adjustment does not impact Topeka's current recruiting efforts to support the addition of a fourth shift in the plant's Off-the-Road operations.
Lisa Spangler-Ignoto
Communications Manager
The Goodyear Tire & Rubber Co.
Topeka Plant
The short-term shut-down is prompted in an effort to match production levels, Goodyear Spokeswoman Lisa Spangler-Ignoto said.
The demand for commercial truck tires is down, said Jim Smith, Tire Review editor. America’s bad economy is playing a large role in why Goodyear has been forced to reduce how many tires it makes, he said.
Because trucking is an instrumental part of the consumer economy, if there’s fewer goods to be shipped, that means fewer trucks on the road, which leads to fewer truck miles and fewer tires that need to be replaced.
“Just a web of interconnections and one change in purchasing behavior by consumers or by other businesses, then the entire economy, there’s an adjustment and a ripple effect,” Washburn economist and assistant professor Paul Byrne said.
Right now, Byrne said the plant shut down is pretty minor in the grand scheme of things. But if shutdowns start happenings frequently, Byrne said it could be a bad sign.
“If Goodyear thinks things are going to be particularly bad, if they're expecting things to get a lot worse, they're actually going to start cutting back their production even more and that has kind of a ripple effect through the economy,” said Byrne. “It's an indicator of a decrease in demand for Goodyear's product and if that is occurring throughout the economy, then that's a recession.”
Smith said future shutdowns, and even layoffs, will depend on the economy.
Goodyear officials won't say this is just a one-time plant shut down.
The company said it has no idea how many people the temporary production reduction will affect.
Some of the more senior employees impacted by the Goodyear production reduction may receive compensation, Tripp said.
There are no plans to reduce off-the-road and military tire productions at the plant, said Spangler-Ignoto.
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