Mohawk cuts 68 jobs in Dalton

From Staff Reports

Calhoun-based Mohawk Industries will close its carpet finishing operations at the company’s Green Street facility in Dalton, resulting in 68 job cuts.

Company officials told employees Tuesday of the decision and offered to help them in the coming months, according to a Mohawk press release. The company plans to offer the employees jobs at other Mohawk plants and work with the state to set up a job fair featuring local employers and employment agencies.

“To remain competitive, production capacity must reflect consumer demand,” said Joey Faircloth, Mohawk’s vice president of residential manufacturing, in the press release. “The discontinuation of the finishing process at Green Street should not in any way reflect negatively on the performance of our employees there. Their exceptional work ethic reflects an outstanding dedication and commitment to their responsibilities.”

Faircloth did not immediately return a phone message Tuesday afternoon.

Dave Foster, a floorcovering industry observer and host of the “Floor Daily” talk show on radio station WBLJ 1230 AM, said Mohawk officials indicated on a recent conference call with reporters that “they’re going to continue to adjust and take whatever measures they have to take to trim expenses going forward.”

Net sales for Mohawk in 2007 were $7.58 billion, down from a record $7.90 billion in 2006. The Mohawk segment, which includes soft floorcovering products including carpet and rugs, “has been impacted greater than our other segments,” with sales down 13 percent in the fourth quarter of 2007, said Jeff Lorberbaum, company president and chief executive officer, earlier this month. Mohawk segment sales in 2007 were $4.20 billion, down from $4.74 billion in 2006.

“As regrettable as it is for people to be displaced, it’s happened before and it will happen again,” Foster said. “It’s part of this cycle. I think that unfortunately there’s probably going to be some more of this before this is all said and done.”

Job cuts and shift reductions from the industry’s three major players — Dalton-based Beaulieu Group, Mohawk Industries and Dalton-based Shaw Industries — have been prevalent in recent months. Last fall, the three companies laid off nearly 1,000 total employees in five plants in Alabama and Georgia.

Company officials point to weakening carpet sales attributed to the slowdown in new home construction and a shift in consumers’ tastes from carpet to hard surface products.

“The same thing is happening across the board, and not only in the floorcovering industry,” Foster said. “In fact, a lot of other industries are having a harder time than the carpet and the floorcovering industry is. I think one of the more positive aspects of it is that when things do turn around I think the carpet and floorcovering industry will be one of the first to realize some of the benefits.”

Foster said it’s impossible to know how long this “cycle” might last, noting, “I guess as many people as you ask, you’ll get as many different answers. Most seem to think we’re going to see some recovery before or at least by the end of the year, at least the fourth quarter and possibly some of the third and the fourth quarter.

“Who knows? A lot of them (experts) have been wrong up to this point.”

Another positive?

“The commercial part of the business seems to be going along well,” Foster said, “although some people are expecting that to slow somewhat this year. That’s been one of the bright spots in this industry.”