Crane manufacturer Manitowoc announced that it would reduce headcount during 2016 to “rightsize” the newly independent Cranes business to increase operating efficiencies to meet current demand levels. The company plans to reduce staff in its Shady Grove, Pa., and Manitowoc, Wis., facilities, and will also carry out plant rationalizations and other cost optimization initiatives.
“As we have communicated, this cycle has proven to be different from any other in recent past,” said Barry Pennypacker, president and CEO of the Manitowoc Co. “Since joining the company in late December, I have continued to outline a strategy that centers on our key stakeholders – customers, employees and shareholders. My goal is to create a culture that is driven by innovation and velocity at the core of every aspect of our business.
“Our business has great potential for growth and improved profitability. However, there are clear opportunities to improve near-term performance, while at the same time positioning the company to extend its industry leadership. The activities we are announcing today will further improve ouor margin profile, while ensuring agility in our response to customers’ needs. We will provide greater clarity on expected costs and savings as a result of these actions during our first quarter 2016 earnings call.”
On March 4, Manitowoc, successfully completed the spinoff of its wholly owned subsidiary Manitowoc Foodservice, which has started trading as a stand-alone company. Industry analysts believe the spinoff will benefit Manitowoc, enabling it to pursue growth more effectively in response to market conditions.
Manitowoc has been particularly hard-hit by the downturn in the oil-and-gas market.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.