BRADENTON, Fla. — Pierce has stopped new Medtec ambulance orders and will lay off more than 300 workers, the company announced Thursday.
According to the Bradenton Herald, smaller municipal budgets and slowing customer sales have made the line unprofitable.
“Medtec has been losing money for quite a few years,” said John Daggett, vice president of communications for Medtec’s parent company, Oshkosh.
“We hoped the relocation to Florida would return the business to profitability, and for the past 16 months we spent significant resources to improve those deficiencies, but despite all of the efforts, the operation continues to result in a loss,” he added.
From January to summer 2011, Oshkosh was consolidating Medtec Ambulance into fire and emergency segment facilities. Records show that the company also invested about $5 million in facility enhancements and other related expenses.
SEC filings said concern about lower municipal spending was a major factor in leaving the ambulance business. The fire truck segment, however, will continue to operate.
Layoffs are expected to begin in November with a gradual ramp down until all existing orders are met.