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Message: <blockquote data-quote="bobcat_ron" data-source="post: 19089" data-attributes="member: 1066">I got this from a little birdy on Lawnsite: " Gwinner bobcat plant was producing over 125 bobcats a day , when IR was owning them. IN june gwinner was down to 55 a day. and they were told the IR flooded the market, and stored bobcats in warehouses all over the U.S. must be blind in Bismarck. " " Consider these facts. During the 2002-2006 contract, management began a "zero inventory" program. They wanted to only keep a two day supply of parts needed to complete any given machine in the Bismarck facility. That did not happen on a regular basis. At the same time and even closer to the expiration of that contract, we were building on average, 10 - 13 machines per day that had no end buyer. At the same time we were forced to work overtime to build this inventory that was not moving because the housing market was already slowing down at that time. A failure to recognize that the inventory level of finished product had grown enormously did not curb the Overtime. So the company paid a higher wage to saturate an already full inventory of equipment on their own lot. This completely contradicted their philosophy of letting the market pull the orders for new equipment. Also contradictory to the zero inventory philosophy. The main worry bobcat has had for the past decade has been market share. They figured if they kept alot of unsold machines on the lot, that they could flood the market at a moments notice, say in a natural disaster or something of that nature, would cause a sudden demand for their product, instead of going with the normal build cycle. As the economy turned farther south, they continued to build for the non-existent customer. Poor management practice in my books. A multi-billion dollar company such as Bobcat should be able to have a better heads up to this than they have. A thinning out of the mis managers could do nothing but improve this situation and avoid future layoffs. I remember a time when overtime was worked because the demand was greater and for the most part, was a part of the demand cycle, but to keep excessively manufacturing products that are not moving, is not a very good business practice. Good luck to all those getting laid off, and don't forget to speak up when you feel like Bobcat is making more poor business dec!isions. " " Does anyone know that IR saturated the market with products before they sold to Doosan? They were so overstocked they couldn't find storage space for all of the equipment. Shouldn't some of the "fault" be placed on IR? With all of the other factors, the market saturation played a part in what is happening now. The fat cats at IR aren't worried though. " "Bobcat has shut down other U.S. facilities. They closed, yes closed/ceased operations, permanently, their plant in Carrollton, Georgia, ( Attachments Plants) as well as another plant in Virginia, operated by a sister company. They've also let go nearly 4 dozen engineering employees in Bismarck and Gwinner in recent weeks, so this isn't just affecting hourly/factory employees. As well, employees in NC were recently let go and these were salaried employees". Has Bobcat screwed themselves good now?</blockquote>

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