Wednesday, November 19, 2008

Downward Spiral: Evraz Oregon Steel Spiral Pipe Mill Layoffs

Evraz Oregon Steel Spiral Pipe Mill, a mouthful and then some and maker of Steel product, has decided to face the reality of the economic hardships and layoff 130 employees. This is about 13% of their staff and will occur starting as of this posting all based in Portland.

These poor folks will likely be spending less time running through the malls, but they may have some time to get the last little gift they can on the black Friday deals. Some part of me thinks BF will be a slowish day due to people's wallets and line-of-credit being nailed shut, but the other half thinks it could turn out chaotic, violent, stressful, and busy due to people affected by layoffs having more time than money and eager to take it as a last chance to get that Christmas gift.

We just saw a flurry of auto related demand destruction. This is the type of company that gets hit by that weakened demand. I am not sure who their suppliers are, I guess miners and recyclers? They are certainly not the root of the product chain of this sort, so you can bet their own suppliers are going to feel the ripples of this credit contraction tsunami.

One other detail that occurred to me while posting about this type of business and their place in the economy. I was under the impression that the only type of companies existing in the USA were retail workers and some tech people working on a ridiculously bad business plan awash with credit bubble provided venture capital at a company that looks like a 4 year old named it. It seems real product has been created here all along. The strong dollar is a double whammy for any of these guys who had been exporting.

Evraz Oregon Steel Spiral Pipe Mill is headquartered in Portland, Oregon.

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2 comments:

juliem0826 said...

well it is 12/18/2009 and Evraz hasn't done anything for its employees this xmas. they do more for its customers than employees

jimmy said...

this is not always true because ongoing companies create business plans, project plans, new product plans, and plans for acquiring and integrating other ventures. General Dwight D. Eisenhower once said, “Plans are nothing. Planning is everything.” jimmy
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