PulteGroup to shutter Phoenix-area manufacturing facility

The nation's largest homebuilder, PulteGroup Inc., is phasing out a manufacturing facility in the West Valley that ultimately will result in the loss of 280 jobs.

Pulte Building Systems LLC is a Tolleson-based subsidiary of the publicly traded homebuilder that prefabricates and installs certain wood products used in home construction.

PulteGroup, based in Bloomfield Hills, Mich., has begun a gradual phase-out of the manufacturing operation.

The West Valley facility will close in August, said Jacque Petroulakis, a local spokeswoman for PulteGroup, which builds Phoenix-area homes under three brands: Pulte Homes, Centex Homes and the Communities of Del Webb.

Employees have been aware of the phase-out since October, Petroulakis said, although few layoffs have yet occurred.

"These changes are unfortunate and never easy," she said. "Meanwhile, it was important for us to communicate the news to employees as soon as possible."

Pulte Building Systems was created in 2003 to help boost homebuilding productivity in the Valley.

For the past eight years, the facility's manufacturing staff has been producing and installing engineered wood products such as doorframes, window frames, moldings and trusses.

There are about 50 employees on the manufacturing side and an additional 230 staffers involved in delivering the products to home sites and installing them, Petroulakis said.

With far fewer new homes being built in the Phoenix area, PulteGroup no longer could justify keeping the small Arizona-based subsidiary in business, she said.

The builder will return to using outside contractors to produce and install its engineered wood products as it had done before the housing boom.

According to local housing analysts, 2010 was a lean year in terms of new-home sales, forcing homebuilders to scale way back on their operations.

There were 5,280 new-home sales in Maricopa County during the first nine months of 2010, compared with 19,450 new-home sales during the same period in 2007, according to data from the realty-studies department at Arizona State University's W.P. Carey School of Business.

Petroulakis said the shutdown of Pulte Building Systems is part of her company's strategy to survive the slump.

"Ultimately, this change is necessary to support the company's return to profitability," she said, adding that existing and new customers can continue to expect quality service from the company.

by J. Craig Anderson The Arizona Republic Jan. 12, 2011 12:00 AM





PulteGroup to shutter Phoenix-area manufacturing facility