Gits Downsizes, Outsources


Lubrication equipment maker Gits Manufacturing announced last week that it will lay off 78 employees by June 2014 and move its Iowa production to Mexico and China.

A representative from Gits Manufacturings parent company, Actuant Corporation, told Lube Report that it will fold Gits headquarters in Creston, Iowa, and move around 15 people to its product innovation center in Urbandale, Iowa. Actuant will lay off the remaining 78 Gits employees in five stages from November 2013 to June 2014. It will transfer its manufacturing of lubrication and airflow management devices to its other two existing facilities in Juarez, Mexico, and Taicang, China.
Karen Bauer, Actuants head of communications and investor relations, said the company made the decision based on an effort to consolidate the manufacturing activities of Gits into two existing locations, to improve [Gits] competitive positioning, facilitate growth and respond to current market conditions. Bauer added that the companys overall business is not shrinking; despite the layoffs in Iowa, new employees will be hired at the other locations.
Founded in 1910, Gits designs oil cups and other lubrication devices such as liquid level gauges, oil hole covers, and bottle and brush oilers. Other product lines include emission control and turbo boost products.

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