Early Warning Signs – Part 2

originally published December 20, 2010 –

Last week, we began looking at some of the early warning signs that show the possibility a need for employee retention or layoff aversion assistance. Columbus Area Labor-Management Committee is a part of the Ohio Department of Development’s Early Warning Network, and can deliver these services at no cost to private sector employers.

This list was originally developed for the Layoff Aversion Guidebook prepared by the Steel Valley Authority in Pennsylvania. If you are interested, the entire guidebook is at http://www.steelvalley.org/images/lag.pdf

This week, we will look at market and community driven factors.

Demand or sales declines
Products, processes of services become obsolete due to technological innovation
Increased domestic or foreign competition
Changes in state/national taxation, regulation, monetary policies
Change in international relations (re: markets or supplier/customers)
Inventory stagnant
Loss of market share
Industry sector declines


Lack of access to raw materials, energy, products and services
Lack of skill in local work force
Lack of quality or availability of land or infrastructure
Local/state tax or regulatory policies
Lacking transportation
Proximity to market changes transportation costs, etc.
High insurance rates
Poor access to trucking/rail/water/air
Utility rates high, or lack of energy availability
Aging owners
Shifts reduced
Increase in subcontractors, temporary workers
Lack of management and engineering talent

Next week, we will conclude the list with a look at organizational factors.

About CALMC Blog

Columbus Area Labor-Management Committee is a not-for-profit organization dedicated to involving employers and employees to preserve jobs, resolve workplace issues, and promote labor-management cooperation. Visit our website at http://calmc.org
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