Columbus McKinnon plans to close a Charlotte manufacturing site, resulting in the loss of 73 jobs. Some of the work done at the Charlotte site will be moved to a plant in Monterrey, Mexico, according to the company.
Columbus McKinnon told employees Tuesday it would close its leased Duff-Norton manufacturing facility on Pioneer Avenue on Sept. 29. The company manufactures linear actuators – devices that lift things from below – for industrial and manufacturing companies.
The Charlotte site, which has been in operation for more than 40 years, has had “ongoing and continued” issues with customer satisfaction, according to paperwork filed with the state. Those issues include on-time deliveries and other issues, says Kristy Moser, a vice president of investor relations.
“To streamline our operations and support expected growth, we have announced the decision to consolidate our North American linear motion production (linear actuators and rotary motion products) into our North American Manufacturing Center of Excellence (in Mexico),” says Moser. “While it was a difficult decision, it was necessary to achieve our customer experience and growth goals.”
Moser added that McKinnon has a “team dedicated to assisting employees with their transition.”
“We continue to invest in job growth in North Carolina, moving our headquarters to Charlotte in 2022,” she says. Moving the headquarters from a Buffalo, New York, suburb to Charlotte added about 100 jobs here, she says. “In fact, after accounting for the closure, employment in the region will be roughly flat to three years ago with a mix shift to higher paying positions.”
Columbus McKinnon manufactures hoists, crane components, price conveyor systems and other motion devices for several dozen brands, employs about 3,600 workers and has manufacturing sites in 25 countries. More than half of its employees are in the U.S.
Columbus McKinnon also has a manufacturing site in Wadesboro, about 50 miles southeast of Charlotte. The Wadesboro site is not part of this action, Moser says.
Fifty-nine of the 73 people losing their jobs at its Charlotte site were listed as either machinists, material handlers or product assemblers. Duff-Norton, one of its more than a dozen brands, makes linear motion solutions for industry, including linear actuators, screw jacks and rotary unions.
Of the 73 employees, 67 are represented by the United Steelworkers Union. The last day for union workers will be Sept. 29. The last day for the six non union workers will be March 31, 2025. The difference in dates, Moser says, is that the non union workers will be involved in “wind-down activities” such as managing inventory and cleaning up the facility.
Union leaders did not immediately responded to questions. There are no bumping rights relating to non-union employees.
In a Securities and Exchange Commission filing Wednesday, the company said it was moving the work to a plant in Monterrey, Mexico. The company said it expects to incur approximately $4 million to $5 million in asset-related impairment costs, $1 million to $2 million in employee related severance and retention costs, and approximately $1 million to $2 million in other costs related to the relocation during fiscal 2025.
Columbus McKinnon topped $1 billion in sales for the first time in 2024, up 8% from the previous year’s $936 million. Income from operations was $107 million, representing a 36% compound annual growth rate over three years. Its gross profit was $374.8 million in 2024, compared to $342 million the year before, according to its annual report.
In its quarterly report issued Wednesday, it reported first-quarter profit of $8.6 million. The results met Wall Street expectations, according to Yahoo Finance. It posted revenue of $239.7 million in the period.