Welch Allyn shifting work abroad, blames pending medical-device tax

Mike Verespej

Published: September 17, 2012 6:00 am ET

Related to this story

Topics Medical, Public Policy

SKANEATELES FALLS, N.Y. (Sept. 17, 8:45 a.m. ET) — Global medical-device and diagnostic equipment manufacturer Welch Allyn Inc. said it plans to reduce its 2,750-person workforce by 10 percent over the next three years, partly triggered by the 2.3 percent excise tax on U.S. medical devices scheduled to go into effect Jan. 1.

The nearly 100-year-old family-owned company said it will close its manufacturing plant in Beaverton, Ore., and consolidate its North American manufacturing at its plant in Tijuana, Mexico, which opened seven years ago, and at its corporate headquarters plant in Skaneateles Falls, N.Y.

The Beaverton location will become one of three new product development and technology centers, with the others being in Skaneateles Falls and in Singapore.

Welch Allyn also said it will open a global finance shared service center for the company in Tijuana.

As part of the restructuring, 160 manufacturing employees in Beaverton and 45 employees in Skaneateles — where the company employs roughly 1,300 — will lose their jobs. The other 75 layoffs are expected to be voluntary buyouts of employees in Skaneateles Falls.

Those changes will reduce the Beaverton workforce to approximately 110.

“These actions will proactively prepare the company to address the onerous U.S. medical-device tax scheduled to begin in 2013 as mandated in the Affordable Care Act, as well as significant changes driven by health-care reform and market dynamics,” said the company in a news release announcing the restructuring and the workforce reduction.

Welch Allyn also said it would re-examine its operations in Europe and restructure its operations in Latin America to make them more competitive.

“We firmly believe this restructuring program is the right thing to do for the long-term success of the business,” said CEO and President Steve Meyer. “This restructuring plan will help us maintain competitive levels of investment in new products and technologies that are necessary to meet the changing needs of the global health care environment.”

Each laid-off employee will receive outplacement service, up to $4,000 in tuition reimbursement, and what the company termed “a generous severance package” — although it did not elaborate.

“We fully recognize the hardship it will cause some of our colleagues in the short term,” Meyer said.

Welch Allyn's global headquarters will continue its evolution into a high technology center and capitalize on demand for digitally enabled patient vital signs monitoring systems and diagnostic cardiology product offerings.

The Skaneateles Fall location also will absorb the patient monitoring, systems and low acuity vital signs product manufacturing operations from its Beaverton facility, the company said.

The Tijuana operations will absorb additional thermometer-probe cover, lamp and some blood-pressure cuff manufacturing operations currently done in Skaneateles Falls.


Comments

Welch Allyn shifting work abroad, blames pending medical-device tax

Mike Verespej

Published: September 17, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Residents ask court to close pipe maker

November 21, 2014 3:22 pm ET

Residents living by National Pipe & Plastics Inc.'s new factory in an industrial zone of Endicott, N.Y., say the facility has “devastated the...    More

Image

Ineos making its UK shale play

November 21, 2014 9:29 am ET

Chemical giant Ineos Group AG is planning to be the biggest player in the United Kingdom's shale gas industry.    More

UK court hearing case of rotomolding worker killed in 280 C oven

November 21, 2014 9:00 am ET

The management at a United Kingdom rotational molding plant are facing criminal charges for the death of a worker who was trapped inside a 280...    More

Image

New York City officials avoid taking a stand on plastic bag fee

November 20, 2014 11:28 am ET

New York Mayor Bill de Blasio's administration claimed Nov. 19 to be committed to dramatically reducing plastic bag consumption in New York City, but ...    More

Image

Agilyx facing nearly $50,000 in fines from Oregon DEQ

November 20, 2014 11:59 am ET

Agilyx Corp., a plastic waste-to-oil company, is facing nearly $50,000 in fines for alleged hazardous waste violations at its Tigard, Ore., research f...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events