Good Sign in Madison: Gehl Wants You!

Gehl Layoffs Coming... for Brass?

Manitou, the French owner of Gehl Manufacturing, says things are looking up for 2010. They predict single-digit growth by the end of the year (that beats the 54% drop in business for 2009). The also say Gehl had a good January, perhaps enough to "help resolve the situation" with Gehl's creditors.

But the nervous line of the latest Gehl news:

In the coming weeks, Gehl will adopt a leaner management structure, with some key executives likely to leave the company, said Manitou [Murray Pollak, "Manitou inventory sales helps final quarter figures," International Rental News, 2010.02.05].

Leaner management structure—not the words you want to hear if you're clinging to a job. The rank and file who stood far too idle at the Madison plant over the past year can perhaps take small comfort in knowing the brass are about to share their pain.

Gehl in Technical Default; Manitou Negotiating with Bankers

The recession is still beating up local manufacturer Gehl. The company is in technical default, meaning they're making their payments but are out of compliance with some aspect of their debt contracts. Parent company Manitou, still shaking its head over its really bad timing in acquiring Gehl just in time for the recession, is negotiating with Gehl's banking syndicate. (More details here.)

Quiet Christmas for Gehl: Manitou Predicts Q4 Sales to be Low Point

Workers at Gehl may not get back to full hours any time soon: parent company Manitou saw third quarter revenue drop 47%. Manitou expects rotten sales to continue through the fourth quarter. But on the bright side, Manitou president and CEO Jean-Christophe Giroux sees orders picking up a little and sales perhaps picking back up in 2010.

Madison's sidelined Gehl workers aren't the only one hoping sales have hit bottom and are ready to bounce back: Manitou has cut 35% of its workforce just this year.

Digging for more bright side? Turn perhaps to Australia, where distributor LiftRite signed a long-term agreement this month to carry Gehl skid loaders. Long-term—let's hope that's the key word!

Notes from Tonight's City Commission Agenda: LAIC Handout, Vote Question, Sidewalks, Beavers, and Bugs!

I'm perusing the Madison City Commission agenda packet for tonight's meeting, at which Dwaine Chapel will ask the city for yet another zero-accountability handout for the Lake Area Improvement Corporation. The agenda packet doesn't even include a letter from the LAIC indicating how much of our tax dollars they might ask for, or for what purposes. Wouldn't want to much information getting out to the public, would we, LAIC?

I notice a slight discrepancy in the minutes from last week's meeting: the minutes report (on page 16 of the 36-page agenda packet) that the vote to hand out $125K to cover James River Equipment's Highway 34 turning lane was unanimous. However, the Madison Daily Leader reported the vote was 4–1, with Nick Abraham dissenting (perhaps on faulty geographic reasoning, but so be it).

So which is it? Nick, did you vote no or not?

Also of interest are the packet of letters from residents requesting extensions on their sidewalk installation deadlines. Most refer to complications with lining up a contractor. One handwritten note, however, makes a rather more pointed argument. I transcribe verbatim from page 32 of the agena packet:

To whoever it may concern:

Could we please get an extension on our sidewalk? I am employed by Gehl Co.—only working 6 days per month. Our funds can't handle it now. Such a project right now with the economy and Gehl employees.

David Anderson

Perhaps the city will be as generous with Mr. Anderson as they are with the LAIC and big business.

Randy Schaefer is also among the folks requesting a little more time to install that darn sidewalk. He appears indirectly a second time in the minutes: his Silver Creek Circle development is among five miscreant properties listed in the mayor's report (page 36) as having tall grass and weeds. Great Scotts! Cut the guy a break—he's boning up on all those messy Regents issues.

Someone also complained to the mayor about the need for some more mowing along the bike trail. Good work, kids! A while back, I did see what appeared to be a private citizen taking matters into his own hands and mowing along the trail towards its eatern terminus. He even had the courtesy to go back over the trail with his rider mower and blow the grass off the pavement. Nice!

Also in the mayor's report: complaints about a horse in the yard on Northwest 6th Street, beaver activity on Silver Creek, and (today's piéce de resistance) bug bites at a motel. It must be fun to be mayor.

Gehl Suspends Yankton Ops -- Bad Sign for Madison?

When employment figures are good in Yankton, there's cause for optimism in Madison. So said Jon Hunter last week of Yankton's April decline in unemployment and good news from the Yankton Gehl plant:

Just like the Madison plant, the Yankton Gehl plant had laid off employees and cut back hours dramatically. The company announced in April that about 100 employees in Yankton would return to work.

While the two plants make different products, the improved fortunes at Yankton would indicate that the company as a whole is more optimistic and less likely to retrench further [Jon Hunter, editorial, "Progress in Yankton May Mean Madison Gets Better, Too," Madison Daily Leader, 2009.05.26].

Four days later, Gehl announced it is temporarily suspending production at the Yankton plant. No word yet from our man Hunter on what that means for Madison.

Far be it from me to be a pessimist, but I would think Hunter's headline is as plausible as its contrapositive. Anyone else nervous?

Gehl Going Bankrupt? Manitou Walking Away?

Uh oh:

Shares in Manitou (MANP.PA) fall as much as 11 percent after the French maker of forklifts posts a drop in 2008 net profit and says its U.S. Gehl unit could file for Chapter 11 bankruptcy protection.

"Depreciation relating to Gehl reduces 2008 net profit to 4 million euros whereas the market was expecting 45-50 million and the lack of an agreement with banks relating to Gehl is weighing on the stock," Portzamparc analyst Aurelien Ripoche says.

Manitou can pursue further talks with its banks over Gehl or let it file for Chapter 11, Ripoche says, adding: "The best is to find an amicable solution."

Shares in the company are 3.1 percent lower at 4.70 euros by 0953 GMT ["Manitou Falls on U.S. Gehl Unit," Reuters Stock News Europe, 2009.04.01].

Manitou, which appears to have acquired Gehl at the worst possible time just last year, appears to be looking for a way out. This USAgNet report says Manitou might be acting like a homeowner whose mortgage is upside down and walking away from payments on an investment that's no longer worth the effort.

Can't blame the LAIC for that one... but if Manitou isn't just blowing smoke for some hardball negotiation strategy, we may have some serious economic redevelopment to do. Anyone care to buy Gehl back? Given that Manitou spent $331M on stock to gain control, even with stock values down, I think we're going to need a bigger kitty than Forward Madison has to pull that deal off. Ideas, anyone?

Coach Ditka: Make an Effort! Gehl Workers: We Were!

Ex-Bears/Saints coach turned sportscaster Mike Ditka campaigns with Gov. Sarah Palin in western Pennsylvania today. Getting off message (must be contagious around Palin:

Departing somewhat from John McCain's argument that failures on Wall Street and in Washington have imperiled the American worker, Ditka argued that anyone seeking employment can find a job — as long as they’re willing to make an effort.

“This is the land of opportunity,” he said. “It's not a land of handouts. If you’re willing to work, you can find a job. If you're willing to work, you can find a job.” [Peter Hamby, "Mike Ditka Hits the Campaign Trail with Palin," CNN.com Political Ticker, 2008.10.31]

Let's hope that's all it takes for the 45 workers who just lost their jobs at Gehl in Madison to find new jobs. They were making an effort, producing such a quality product that the French company Manitou just bought Gehl to add Gehl/Mustang skidsteers to their product line. But then the Bush Recession killed hundreds of orders, and Gehl had to shed 45 people who were perfectly willing to work.

So you tell me: is now the time to elect someone who sounds like Herbert Hoover?

Make That Le Gehl: French Manitou BF Buys Madison's Biggest Employer

Today's RealMadison.org feature: Wisconsin-based skidsteer maker Gehl Co. has signed an acquisition deal with Manitou BF of France. Manitou is buying up Gehl stock and hopes to gain full control of the company by October.

Gehl employs almost 400 workers here in Madison, almost twice the workforce of Dakota State University. How will the acquisition affect those jobs? No explicit mention of layoffs yet, but the numbers from Manitou say that once the deal is completed, Manitou will employ about 3,500. Manitou says it currently employs about 2,800, while Gehl employs about 900. Hmmm... might want to start learning French!

More numbers and links at RealMadison.org!

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Update 2008.10.02: Manitou communications officer Damien Cocton replies on the discrepancy in job numbers, seems to say the difference is based on changes already committed since 2007. Read his e-mail for yourself at RealMadison.org.