Written by Here is the latest update from our Economic development department. We will deeply regret the loss of jobs, and the loss of prestige that comes from manufacturing the best 18-Wheelers on the highway. Let’s hope Kenworth maintains the option of restarting in Renton when the economy improves.
My sincere sypathy to you readers that are directly affected by these layoffs. The economy is really going in the tank right now. Those of us in government will do all we can to improve it.
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>>> Alexander Pietsch 11/14/2008 11:23 AM >>>
yes. Thanks. We’ve been in touch with Kenworth. The company is characterizing it as a temporary reduction in the production of on-highway trucks. They still will make other off-highway trucks. This is a big cut though. They last reported 1,067 FTE in Renton.
Alex Pietsch
Administrator
Dept. of Community & Economic Development
City of Renton
>>> Julia Medzegian 11/14/2008 11:20 AM >>>
Ack! Im assuming Jay, Marty, Alex, etc. know, but just in case . . . . http://seattlepi.nwsource.com/business/387874_kenworthcuts15.html
Kenworth to lay off 421 workersBy
BILL VIRGIN
P-I REPORTER
Kenworth Truck Co. plans to lay off more than 400 workers and end most truck production at its Renton plant as a two-year slump in truck sales moves into a third.Don Hursey, directing business representative for Machinists District Lodge 160, said he was told by officials of Paccar Inc., Kenworth’s parent, that 329 union and 92 management employees will be laid off. The plant will continue to produce two of the large off-road trucks used in such industries as mining. But production of conventional highway trucks will be shifted to Kenworth’s Chillicothe, Ohio, plant.The layoffs and production cuts are effective Jan. 19.A Kenworth spokesman confirmed that the Renton plant is curtailing production and laying off workers, but did not give numbers.Kenworth said the cuts are due to a slowing economy and truck market. Heavy-duty truck sales were 322,000 in the U.S. and Canada in 2006, but fell to 176,000 in 2007 and are expected to be about 2008 this year.
Rich Zwicker
Note: I’m not speaking in any official capacity.
Well, it’s over for a lot of dedicated employees. I’m a fairly new guy at the plant and somewhat of a new Renton resident. The reality of the plant closure haven’t really sunk in yet. We knew about the slowdown but thought they would trim production down more before taking the rather drastic action to basically moth-ball the factory. The depth of the cut make we all wonder if this place will EVER operate again.
I worked a few place before and to be fair, Paccar is one of the better company out there and I’ll miss the many good people I had the pleasure of knowing and working with.
Hopefully, I will get to stay here in Renton, it’s not like it’s easy to sell a house right now:)
Oh, I enjoyed your blog, Randy, even if I don’t always agree with your political stance. Just remember, do no harm. The urge to do “something” can be worse than being cautious.
Regards,
Wow, that really sucks. It seems like the area (and the country) is losing companies that actually make things at a fantastic rate.
Is Renton still an attractive place for manufacturing and other light/medium industrial plants? Or when the economy recovers, are we going to be left with all this capacity moth balled forever?
I think we are still attractive, in that we have some of the lowest business taxes and utility rates in the Puget Sound area. However, the cost of housing and other living expenses is making the Puget Sound area tough for employers… all the employees seem to need more money to cover increase cost of living.
Yes, I’m really bummed about this. You are asking some good questions, and we will have to talk this through as a council to see if we can do anything differently.
We can thank the unions for a lot of these businesses suffering. Compare Honda, Toyota, and VW to the big 3. They are non-union and kicking the big 3’s fannies. They are located in low taxed states as opposed to Michigan which has suffered since Jennifer Granholm took over in 2003. She believes in high taxes to businesses and the rich. The hourly wage for Toyota employees, including benefits, is $40 an hr compared to $78 for the big 3 in the UAW. In my opinion, American made cars to not compare in quality to Toyota, Nissan, BMW, or many others. I have 3 American made cars, and 2 other foreign cars. I have not had a problem with my foreign cars, and have had several with my American cars. I prefer to buy American, but they are substandard. They are way overpriced for the quality. By the way, unions in America gave almost 1 billion dollars this year to help get democrats elected. Now that’s a lot of money. Let the insults begin, as always. TCC
It’s me again, who post the first reply.
The union here at Kenworth is not bad at all, after working at other srong union plant. It is more difficult to deal with a union but overall I dont’ think they contributed much to the closing. City of Renton, although being one of the most by-the-book in doing permitting and inspection, never stood in the way.
The problem with the plant here is the high cost of transporting parts from the midwest and eastern seaboard area. The plant survived as long as it had because it is close to the headquarter.
As for toxic waste, it’s well contained. Everything onsite flow to one location and sampled before discharge. That will continue per agreement with the federal authority. No worry there. Most of your backyard is more toxic, really.
I do hope it will restart in time.
Regards,