Housing slump spurs building-products layoffs

ATLANTA (Reuters) - The U.S. housing slump has resulted in layoffs at building-products makers and other home-goods companies, and one forecaster expects that these construction-related jobs are unlikely to return anytime soon.

This month, Black & Decker Corp. (BDK.N) said it was cutting 160 positions at two power tool plants in Tennessee, citing the weak housing market. That was on top of 70 jobs cut last year by the company, which makes saws and drills used by home builders and other contractors.

"We're trying to be careful to balance the demand for products with the long-term capabilities of the company," Black & Decker spokesman Roger Young said.

Masco Corp. (MAS.N), a maker of paint, faucets and other building products, said it laid off workers in its retail cabinet division on January 4, citing lower new home builds. Though a company spokeswoman did not comment on how many jobs were cut, media reports put the number at about 400.

Andersen Corp., a private supplier of wood windows and patio doors, released 440 workers on January 2. "As a result of forecasts for a continued decline in the housing market, we determined that we had more production capacity than we needed," spokeswoman Maureen McDonough said in an e-mail.

Bernard Markstein, director of forecasting for the National Association of Home Builders, cited the potential for more layoffs as home builders reduce work contracted to electricians, plumbers and carpenters.

"We are seeing a reduction in construction industry jobs and are likely to for the next few months," Markstein said.

Home sales and construction slowed in 2006, but some groups expect improvement in housing metrics this year.

Last week, the National Association of Realtors forecast that existing-home sales would rise gradually in 2007 and into 2008, while new-home sales might rebound by summer.

The association expects 1.51 million new-home builds for 2007, down from an estimated 1.81 million in 2006.

"We believe that housing is going to spring back," said Joel Hoiland, president of the Window & Door Manufacturers Association, a Des Plaines, Illinois, trade group. He said remodeling activity would help offset some of the decline in housing starts.

Markstein, the economist at the U.S. home builder association, said although he expects home construction to pick up a bit starting late in the 2007 second quarter, it will be a while before related jobs return.

"It's going to be six months to nine months before you see a real turnaround, where employment begins to increase on the residential side," Markstein said.