Another 106 workers laid off at Alumacraft in St. Peter, second round of job cuts within a year

More than 100 Alumacraft Boat Co. workers lost their jobs this week at the company’s St. Peter production plant, halving the site’s workforce after another round of layoffs.

It’s the second round of job cuts in eight months by parent company BRP, which cut 68 positions in September while citing marine industry realities amid declining sales.

“It’s really unfortunate,” St. Peter Mayor Shanon Nowell said. “I was feeling pretty hopeful after the first round that that was going to get them through what they needed to do temporarily.”

Company officials notified St. Peter and the Minnesota Department of Employment and Economic Development on Thursday that the layoffs would affect 106 workers. The cuts are permanent and the company will pay employees in lieu of notice. None of the employees was part a union, and no bumping or recall rights are available for any affected jobs.

A spokeswoman with Canada-based BRP said Friday the cuts were part of the company’s move to adjust boat production because of softening consumer demand.

“Given the overall boat industry slowdown with high levels of dealers’ inventory, we had to reduce our production in our St. Peter facility, which led to the difficult decision to make workforce adjustments impacting manufacturing and professional employees,” the spokeswoman said in an email.

The State Rapid Response Team is assessing what support it can provide workers. Nowell said she hoped those laid off will find other jobs in the region, given southern Minnesota’s strong economy through the past year.

“From a city perspective, it’s really hard because we’re a small community,” she said. “We know each other, so we’re all likely to know somebody personally impacted.”

Alumacraft, founded in 1946 in Minneapolis, initially was a subsidiary of Flour City Ornamental Iron Works Co. and one of the first aluminum boat manufacturers in the country. Operations moved to St. Peter in 1970 and BRP acquired Alumacraft in 2018.

St. Peter officials said last fall Alumacraft had expanded its multi-business campus in St. Peter. About 85 employees remain, according to BRP.

BRP reported fourth-quarter results in March that its income of more than $188 million Canadian dollars fell by nearly half compared to the same period last year. Revenue was down 12.5% in large part because of fewer products sold and unfavorable winter conditions that led to decreased demand among consumers. Its marine segment revenue — which also includes pontoon boat company Manitou, based in Lansing, Mich. — was down about 30% to about $90 million ($66 million USD).