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War vehicle manufacturer Force Protection Inc. announced today that it is laying off about 120 workers in response to a decline in vehicle orders from the federal government. That amounts to about 10% of the company’s 1,200-person work force, Force Protection said in a statement. The layoffs will occur through the first half of 2010 and are expected to save the company at least $40 million.
By Molly Parker
mparker@scbiznews.com
Published Sept. 30, 2009
War vehicle manufacturer Force Protection Inc. announced today that it is laying off about 120 workers in response to a decline in vehicle orders from the federal government.
That amounts to about 10% of the company’s 1,200-person work force, Force Protection said in a statement. The layoffs will occur through the first half of 2010 and are expected to save the company at least $40 million. However, Force Protection will take a $2 million hit in the third quarter for severance-related charges.
At its production peak in 2007, Force Protection employed almost 2,000 workers, mostly at its production facility in Ladson. Spokesman Tommy Pruitt said some of the cuts will be offset by growth in other areas, such as the company’s Kuwait operation.
“As the level and mix of our business activities change, we will, as I have stated before, align our business and cost structure accordingly,” CEO Michael Moody said in a statement. “Over the last several quarters, our vehicle deliveries have decreased while non-vehicle delivers of spares, modernization, field services and training have increased.”
During the height of the Iraq war, Force Protection was a leading supplier of the mine resistant ambush protected vehicles that have been credited with saving the lives of countless soldiers and Marines. Though orders continue to arrive from the U.S. and foreign militaries for Force Protection’s Cougar and Buffalo, the demand has tempered.
This summer, Force Dynamics, a joint venture between Force Protection and General Dynamics Land Systems, was passed over for a $1.06 billion contract to build the next generation of lighter-weight combat vehicles.
“We will continue to build vehicles, develop new vehicles and retain vehicle manufacturing capacity as is necessary to fulfill the ongoing demand for our Buffalo route-clearance vehicles, additional Cougar-based vehicles and new products," Moody said.
Moody has worked to shift a good deal of Force Protection’s focus to survivability products other than vehicles, into what the company calls its Total Lifecycle Support operations. That includes training, field service representatives and operations in Kuwait for upgrades and enhancements. The company also is offering a product called Force Armor that can be added on to any combat vehicle as an extra layer of protection from enemy fire. The spare parts business continues to boom as vehicles are repaired and put back into service in Iraq, or shifted to aid U.S. efforts in Afghanistan.
Another area of growth is Force Protection’s research and development operations, which includes working with the Medical University of South Carolina to study and formulate ways to protect war fighters’ brains from the massive shaking that occurs when an explosive detonates under one of the vehicles.
This area of the business has grown exponentially, the company said. Additionally, some employees have been transferred to Force Protection’s Kuwait facilities that were recently established to upgrade vehicles and train troops.
Reach Molly Parker at 843-849-3144.
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