August 28, 2023
A.L.P. to Shut Down Atlanta Area Factory
Manufacturing transition involves 55 job cuts, production shift to Mexico
A.L.P. Lighting Components informed the State of Georgia on Thursday, August 24, its intentions to permanently close the company’s Lithia Springs facility in a phased approach. With five North America locations, A.L.P. specializes in the design, production, and distribution of components for the lighting and related technical sectors. They provide a broad range of products for lighting industry OEMs and other aftermarket customers.
It is anticipated that the 133,000 square foot Lithia Springs facility, which performs many functions related to metal fabrication, will close its operations on June 6, 2024. The upcoming closure will result in 55 permanent layoffs. The company informed the Georgia Office of Workforce Development that permanent layoffs would be executed in four phases leading up to the final closure of the Lithia Springs location. The scheduled dates for these phases are:
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November 2, 2023
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December 14, 2023
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March 7, 2024
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June 6, 2024
The initial November 2 wave of layoffs stems from the transfer of certain manufacturing functions to A.L.P.’s Monterrey, Mexico factory. Subsequent layoffs are also tied to the relocation of manufacturing processes to yet-to-be-finalized locations. In addition to Monterrey, the company has manufacturing facilities in Dickson, Tennessee and Charlevoix, Michigan. The company maintains its headquarters and a distribution center in Niles, Illinois.
Likely an operational strategy play, not necessarily a sign of financial strain
It's rare for layoff notices to detail such extended timelines – this one outlines a four-phase nine-month plan. This suggests there's no immediate financial distress and that the decision is strategic, set to unfold over a longer duration. The forethought and methodical approach to this factory transition may enable minimal disruption in the company's manufacturing operations.
Specializing in the production of Reflek brand aluminum louvers, baffles, reflectors, and Steel Craft brand fixture bodies, the Lithia Springs facility has long been an essential part of A.L.P.’s operations. As stated on the company website, this 133,000 square foot facility, located on the outskirts of Atlanta, not only engages in product fabrication but also offers services such as product design, manufacturing engineering, and tool and die services. Additionally, the location has been pivotal in providing warehousing and distribution services to key accounts in the region and throughout the Southeast.
According to government filings, the company reported a total workforce of 276 employees in April 2020. Undated information on the ALP website states that the company has over 400 employees.
Seamless transition planned with no disruption to customer orders
Addressing the upcoming changes, an A.L.P. spokesperson stated, "The plan is to remain the most reliable, cost-effective metal and plastic components supplier to lighting and other OEMs. We are not getting out of the metal fabrication business. Instead, we are transferring manufacturing operations currently located in Georgia to other facilities."
The spokesperson quelled potential production concerns stating that customers “can continue to rely on various ALP products. We are realigning our operations to be the most responsive, cost-effective supplier. We hope the transition will be seamless." Another manager from ALP assured us that there should be no disruption to customer orders.
