Maine company lays off 13 after Defense Department contract ends

By Leslie H. Dixon, Sun Journal
Posted Aug. 22, 2012, at 7:45 a.m.

PARIS, Maine — Maine Machine Products has laid off 8 percent of its workforce bringing the number of employees down from 138 in 2010 to 125 today.

CEO David MacMahon said Tuesday that about a dozen workers were laid off earlier this month and another five workers were laid off in the spring.

The move was made after a year-long Defense Department contract was completed, he said.

“We value our associates. We only make adjustments [to the workforce] when we’re forced to,” he said.

The company, which is on Prospect Street, manufactures precision machine components for defense, semiconductors and oil and gas companies. Generally, the contracts are through prime and subcontractors for the Defense Department and not directly with the Defense Department, he said.

The move to “make adjustments” in the workforce is not unusual, MacMahon said.

At the end of 2010, the company laid off 11 full-time employees and placed another 40 on a two-weeks-on, two-weeks-off schedule after another major contract was completed. The move, which affected more than one-third of the company’s then 138 employees, was made due to an end-of-the-year production slowdown. The facility was also shut down for two weeks at that time.

“These things go up and down. It’s extremely difficult to predict,” MacMahon said.

“Tell me what’s going to happen to the defense budget and tell me what’s going to happen to the economy,” he said when asked what he saw for the future.

As much as 30 to 60 percent of the company’s work in any given month is related to defense contracts, he said.

The company was founded in 1956 by Roland Sutton and Bill Detert at the beginning of the local metal working trade. Sutton took the reins of the company in 1982 before selling out in 2010 to GenNx360 Capital Partners. GenNx360 was founded in 2006 and is based in New York with offices also in Boston, Seattle and India.

http://bangordailynews.com/2012/08/22/business/maine-company-lays-off-13-after-defense-department-contract-ends/ printed on August 1, 2014