Human Resources, Manufacturing, and Real Estate

Logistics supplier moves production to Mexico

February 2, 2016
TAGS Dematic / jobs
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Logistics supplier lays off 75
Dematic makes logistics equipment and software, such as container shuttles for plants, warehouses and distribution centers. Photo via wikimedia.org

A logistics supplier announced this morning that it will move its manufacturing operations from Grand Rapids to Mexico later this year, eliminating 300 local jobs.

Dematic, which has its U.S. headquarters in Grand Rapids and its global headquarters in Atlanta, said last month that it was considering the move to save money.

Dematic said today that after talks with the UAW during the past month, it has decided to move forward with the plan to relocate its local manufacturing operations to its facility in Monterrey, Mexico.

Rob Arguelles, Dematic EVP of Global Operations, said previously, “This is purely about economics and how can we provide productivity and cost performance.”

The company’s Grand Rapids plant makes conveyor and sortation equipment.

Dematic currently employs 1,200 workers in Grand Rapids.

The relocation of manufacturing activities will impact about 300 positions in fabrication, assembly, warehouse and plant administration.

Dematic said today its decision will not affect the more than 900 Grand Rapids positions in sales, engineering, research and development, solution development, customer service and administration.

The transition of manufacturing activities will likely occur over the next several months and is expected to conclude by September.

Dematic has 5,000 employees worldwide, with other facilities located in China, Italy, Germany and Australia.

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