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Dive Brief:
- Minneapolis-based Knutson Construction will close the doors of its Iowa City, Iowa, office on Oct. 3, according to a Manufacturer filed WARN notice with the state
- As a result of the closing, the company will also lay off 40 workers, according to the notice. John Curry, CEO of Knutson, told Construction Dive in a statement that the decision was the right one for the business as it shifts its strategic priorities.
- Knutson will continue to work in Iowa, where the company will start two new projects this fall, Curry said in the statement. It will also maintain its three Minnesota locations outside of Mankato, Rochester and its headquarters in Minneapolis.
Diving knowledge:
The federal Worker Adjustment and Retraining Notification Act requires employers with 100 or more employees to provide at least 60 days notice before a plant closing or mass layoff that could affect 50 or more workers, according to the Department of Labor. Iowa’s laws are stricter, requiring businesses with 25 or more employees to give at least 30 days’ notice, depending on the state.
Curry said the biggest priority in the coming months is making sure the transition goes smoothly for customers and partners.
“This was a difficult decision as we understand the impact it has on our 40 employees [at] this location, but it was the right decision for the business as we shift the strategic focus of our company to enable new opportunities for growth and expansion,” Curry said in the statement.
Knutson has a deep presence in the Midwest: Thor Knutson, a Norwegian immigrant who established roots in the area, started the company in 1911according to Knutson’s website. The company reported revenue of $502 million in 2023 in Engineering News-Record list of major commercial contractors in the country
The closing comes amid an employment report that showed evidence of a slight decrease in demand for commercial construction jobs. About 2.9 percent of all construction positions went unfilled in July, a smaller share of openings than June’s 3.5 percent, according to Bureau of Labor Statistics data released last week.
