PlaCon cites supply-chain shocks, says it preserved staff; committee finds company in compliance
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Summary
PlaCon Corporation told the tax-abatement committee supply-chain disruptions and a major supplier outage reduced output and hiring but retained staff through scheduling changes; the committee recommended the company be found in substantial compliance with its real- and personal-property statements of benefits.
City staff told the Elkhart City Tax Abatement Committee that PlaCon Corporation met or exceeded its capital commitments but was under its new-job target for two consecutive years. PlaCon general manager Mike Nielsen described industry-specific supply-chain shocks that constrained production and hiring but said the company worked to retain employees through shift consolidations and four-day work weeks during the downturn.
Nielsen said a major supplier explosion and material allocations in 2021 forced extended lead times; production destocking began in late 2023. He told the committee PlaCon peaked at 105 employees but adjusted schedules to avoid layoffs and had reopened a third shift in April, with 81 full-time employees and eight temporary workers whom the company hoped to convert to full time.
Committee members asked whether supply-chain issues were resolved; Nielsen said lead times had returned to normal levels in most cases. After discussion, a council member moved and the committee voted to recommend a finding that PlaCon is in substantial compliance with its statements of benefits for both personal and real property; the recommendation will go to the Common Council for final action.