After three years of watching the economy shrink, Greenwood-based Upchurch Plumbing recently let go 27 employees — the first layoffs in the company’s 39-year history.
The family-owned, family-operated business let the employees go three weeks ago.
“With the economy like it is, we were forced to do layoffs,” said Mike Upchurch, the company’s vice president. “Hopefully, when it comes up, we can hire back again.”
Upchurch said none of the layoffs, mostly craftsmen and helpers, were based on work performance. He said the company’s business has declined over the past three years. “About 7.4 percent of our sales volume is from the Mississippi Delta region,” he said. “Four years ago, it was 80 percent. “
Upchurch said the company tried alternative cutbacks before resorting to layoffs. Work weeks were reduced to no more than 40 hours, and the company experimented with employee relocation. “We’ve also tried to expand business outside of the Mississippi Delta region to make up for the loss,” Upchurch said. “We try to do our best to do business in the Delta, but we’ve had to expand outside of it.”
Upchurch Plumbing specializes in commercial and industrial work. The company provides services such as plumbing, mechanical piping, HVAC and prefabrication. It serves primarily the Gulf States region of the southeastern United States.
According to the Mississippi Department of Employment Security, as of July, Leflore County had an unemployment rate of 13.9 percent — higher than the state figure of 10.5 percent and the national rate, 9.7 percent.
Angela Curry, executive director of the Greenwood-Leflore Industrial Board, said the economy has affected businesses throughout the county. “It’s a difficult time right now for economic development,” Curry said. “However, we are staying optimistic that projects for new jobs will develop in the area.”
About 600 jobs have been lost in the area this year, Curry said.
“We are working diligently to create new jobs,” she said. “But, project activity is very slow right now. We are working on economic projects, but nothing has materialized yet.”
Manufacturing jobs have been particularly affected, but other industries are not weathering the economy much better, she said.
“Nothing is really safe right now,” Curry said. “No industry has been immune to the effects of this economic downturn.”
