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Staff optimistic after GS Engineering downsizes
Posted: 09.26.2011 at 5:15 AM
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HOUGHTON -- For the past 10 years, GS Engineering in Houghton has seen a 30 percent growth in revenue each year.
    
Despite its success, the SmartZone company recently laid off 10 percent of its staff, lowering its number to 57 employees.  The cuts resulted primarily from concerns about the nation's overall economy.
    
"A trigger point was when Congress was going through their force reductions,” said Vice President Chris Coxon.  "At that point, our clients immediately started withholding cash on programs, readjusting their development budgets, and doing what they can because everyone is going to be impacted."
    
The company provides design services for military and commercial clients.  Most of its 14,000 square foot facility is closed to the public under federal law.  But its website shows some of the prototypes for military vehicle testing and design.
    
Layoffs occurred across the board, affecting both engineers and office staff.
    
"It was an adjustment in our work force.  It definitely impacted both the community as well as our employees, and we’re doing everything we can to move forward as an organization," Coxon said.

The company works closely with the engineering department at Michigan Tech.  So what do the recent cutbacks mean for our future graduates?
 
According to some, not much.
    
"In addition to GS Engineering, you've got GE Aviation, you've got Ford,” said Dave Reed, Vice President of Research at Michigan Tech.  “We're overall optimistic, and I think good students and good graduates will have lots of opportunities."
    
In spite of the layoffs, GS Engineering remains optimistic about its future.
    
"We need to make those decisions to move the whole company forward, and we, as a team, with all of our employees and our customers are moving forward to stability,” Coxon said.

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