Heavy equipment manufacturer Caterpillar laid off 120 temporary workers at its plant in Victoria, Texas, last week, saying sales have been slowed by the U.S. trade war with China, according to Reuters.
The Nov. 1 layoffs took place at a hydraulic excavator facility that employs about 820 workers. Kate Kenny, Caterpillar’s spokeswoman, told Reuters that the decision was due to “market conditions." The firm did not respond to Construction Dive's sister publication, Supply Chain Dive, by deadline.
Last month, the Deerfield, Illinois-based manufacturer said it would ramp down production because sales had decreased by 13% in the Asia Pacific region due to falling demand in China and competition from less expensive domestic rivals and by almost 3% in North America, where trade tensions have made customers wary of large purchases. The company recently announced its third-quarter financial results, badly missing most analysts’ forecasts, according to Zacks. Caterpillar’s revenue and sales declined about 6% during the third quarter.