Just a few weeks ago, S&S Cycle threw a big party for its 50th anniversary that brought an estimated 28,000 motorcycle enthusiasts to Western Wisconsin from all over the world.
Just last week, S&S cut its workforce by 60 workers through voluntary separations and layoffs.
The contrast is rather striking, and thus has made the job cuts high profile in the media and among the public.
Some question whether S&S spent too much on its bash, in the long run at the cost of 60 people’s jobs.
S&S officials vehemently deny that. President Brett Smith said the costs of the 50th anniversary celebration were covered by sales of the 50 custom cycles made for the event, and support from the community.
Smith told local media that the overall economic slump has led to a downturn in sales of S&S’s high performance engines and parts for motorcycles.
“In the grand scheme of things, we make a product that people don’t need to have,” Smith told the La Crosse Tribune.
All but two of the job cuts came at the company’s Viola plant, where most parts and engines are actually made. S&S still employs about 195 people at the Viola and La Crosse facilities.
In many ways, S&S had to expect some questions and scrutiny with the job cuts just a few weeks after a rather extravagant anniversary celebration. Smith acknowledged,
“It’s a very unfortunate decision, coming on the heels of our 50th anniversary.”
Smith also said he expected business to rebound as the overall economy gets better.
While the scrutiny of the S&S moves is understandable, the company’s reasons are also very likely valid.
Industries that are dependent in part on fuel sources are hurting. That includes tourism, restaurants, trucking and other transportation, boat makers and most certainly a maker of high performance motorcycle parts.
People throughout Western Wisconsin and the country have been forced to cut back on some of their secondary spending, on things they might like but do not need. The necessities are costing more because of fuel costs.
Other companies throughout the region have had to cut back, and in some other cases lay off people.
It’s just that some companies’ moves are higher profile. In late July, the Three Bears Resort in Warrens announced it may close as soon as Sept. 29 unless it is sold, with the loss of about 244 jobs.
In a press release, company President Edward Van Der Molen said his firm is actively seeking a buyer or buyers for the property, which is the largest Jellystone Park in the nation.
“The process of selling the resort has been under way for several weeks, and we have a number of interested parties in various stages of fact-finding about the possibility of closing a sale or partnership agreement,” Van Der Molen said.
“Some potential buyers are interested in the Jellystone Park campground only, some are interested in the hotel only, and some parties are interested in controlling the entire resort property,” he said.
“The continuing rise in gas and oil prices and their subsequent effect on the transportation and travel plans of Americans has affected our business like many other businesses,” Van Der Molen said in the press release. “It has not been possible to keep growing the resort at its projected rates during the current difficult economic conditions many of our guests find themselves in.”
The Three Bears is not the only resort in Western Wisconsin hurting because of the economy. Several have laid off people. Others might close.
But, when you’re the biggest in the nation, or an industry leader that just attracted people from all over the world for an anniversary, your sale, or closing, or layoffs are bound to get more attention. It comes with the territory.
