Kimball Electronics has announced plans to close its manufacturing plant in Tampa, resulting in significant layoffs following a notable drop in profits. The Jasper, Indiana-based electronics manufacturer reported a staggering 70% decline in net income in its latest quarter, with net revenue dropping by nearly 15%, falling from $438 million to $374 million compared to the same period last year, as outlined in the company’s Nov. 4 earnings report.
250 Employees in Tampa to Face Layoffs
The Tampa facility, located at 13700 Reptron Blvd, will begin its layoffs of approximately 250 employees starting Jan. 5, 2025. By the end of June, the plant is expected to close permanently. This move is part of a broader restructuring as Kimball prepares to transfer the majority of its Tampa production to a newly expanded facility in Mexico, driven by customer preferences and an evolving perspective on U.S. manufacturing, according to CEO Richard Phillips.
Production Relocating to Mexico
According to Phillips, Kimball is adjusting its operations in response to both customer demand and the outlook for U.S. manufacturing. The company, which provides equipment to the automotive, medical, and industrial sectors, sees this decision as essential amid a sustained weakness in these markets. Phillips stated that the quarter marks another phase of “controlling what we can control” in the face of a challenging economic climate.
Steady Revenue Decline Over 18 Months
Kimball’s revenue trajectory has been on a downward trend for the past year and a half, with sales declining from $496 million in the previous fiscal year to $430 million by the close of fiscal 2024. The company has also projected an additional revenue drop of 8% to 14% this year, reflecting ongoing challenges within its key markets.
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