Pella Corp. awill suspend production at its southeast side plant at the end of the month, the company announced Nov. 5.

The Iowa-based company blamed the impact of the housing slowdown, coupled with the widespread credit crunch for dramatically decreasing demand for building products such as the vinyl doors and windows manufactured at the plant at 6700 S. Pella Drive off West Valencia Road west of Interstate 19.

"This isn’t a matter of shifting jobs to another location or outsourcing. It is a direct result of the dramatic drop in new construction from record levels a few years ago," said Pella Corporate Vice President Mark Hinkie in a statement. "The volatile housing economy and financial market turmoil has touched everyone from consumers to lenders, real estate agents, builders and manufacturers. Unfortunately, after doing all we could to adjust, we must suspend Tucson production in late November to reduce excess manufacturing capacity."

Print this story Email this story Post a Comment ADVERTISEMENT

Landing the Pella facility in October 2005 was the first big "get" for the then only months-old Tucson Regional Economic Opportunities (TREO). At the time University of Arizona economist Marshall Vest called manufacturing jobs such as those at Pella, the "gold standard" in economic development.

Pella converted the old Weiser Lock facility to suit its purposes and opened it in the summer of 2006. The company grew to over 100 employees with the goal of having 450 as production ramped up. About 65 employees will be affected when the plant suspends its operations this month.

Pella says it remains committed to Tucson and says the local plant will be idled — effectively put on hold — until the economy picks up again and production can resume.

In an announcement to investors, TREO said it’s good news that Pella remains committed to Tucson. Despite the economic downturn, TREO said the "pipeline of business development activity is full, and we are actively working on several exciting projects."