Human Resources, Manufacturing, and Real Estate

Logistics supplier reconsidering move to Mexico

April 27, 2017
TAGS Dematic / jobs / UAW
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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 that previously announced plans to move its Grand Rapids manufacturing operations to Mexico is reconsidering its decision.

Dematic, a maker of logistics equipment and software that has its U.S. headquarters in Grand Rapids and its global headquarters in Atlanta, said this afternoon it has invited the UAW 1485 to bargain over “continuing operations in Grand Rapids prior to the December 2017 contract expiration.”

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

"After announcing a contemplated relocation in February 2016, we are re-evaluating our global manufacturing footprint, due to increased customer demand, capacity considerations and recent ownership changes,” said John Baysore, president and CEO, Dematic.

Dematic was purchased by KION Group of Wiesbaden, Germany last summer.

Baysore said he’s hopeful the Grand Rapids facility will “position itself as a leading competitive choice for our operations.”

UAW 1485 could not be reached for comment.

Dematic announced plans to relocate its Grand Rapids manufacturing operations in February 2016, after a month of talks with the UAW, saying the move would be completed later that year.

It would have eliminated 300 jobs in the areas of fabrication, assembly, warehouse and plant administration.

At the time, about 900 jobs would have remained in Grand Rapids in the areas of sales, engineering, research and development, solution development, customer service and administration.

Rob Arguelles, Dematic EVP of Global Operations, said then the move was related purely to economics.

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