Hannibal Industries

Story submitted by: Southeast Area Social Services Funding Authority (SASSFA)

Workforce Challenge

Hannibal Industries is a leading manufacturer and provider of carbon steel tubing products and steel pallet racks in the western US. Hannibal had been profitable every year since 1987, but suffered their first annual loss in fiscal 2009, and had suffered consecutive monthly losses from October 2008 through December 2009, resulting in three rounds of lay-offs impacting over 100 workers, some of them long-term employees who had served the company for over 25 years. Although interventions such as the California Work Share Program had helped prolong employment for some staff, in December 2009 the company was left with 185 workers and needed to make some changes to keep remaining employees and streamline operations so they could be profitable again.

Workforce Solution

SASSFA had assisted Hannibal with Rapid Response services for their laid off workers in the past. They had also helped Hannibal qualify for the Work Share Program in an attempt to save the jobs cut in the last round of layoffs. Now that keeping the remaining 185 workers was a priority, SASSFA assisted again by arranging a County Department of Social Services evaluation for Transitional Subsidized Employment (TSE)/Lay-Off Aversion. The ARRA-funded solution would help pay the wages of qualified employees by providing a $10/hour reimbursement subsidy for each employee with minor children who earned less than 200% of the federal poverty guidelines. Following a survey of employees, it was determined that 25 of Hannibal’s existing employees were eligible for the DPSS Lay-off Aversion Program.

Finally, SASSFA helped arrange for California Manufacturing Technology Consulting (CMTC) to streamline the company's processes and help them select new production software.

Outcomes & Benefits

From December 2009 until September 2010, Hannibal industries received the reimbursement subsidy for all 25 employees. In addition, Hannibal was encouraged to apply to South Bay Workforce Investment Board to become eligible for the regular TSE program which resulted in 10 extra sets of helping hands at no cost to Hannibal, all of whom were eventually kept through a temporary agency. Both programs ended September 30, 2010.

With the resources that SASSFA provided and a rebounding economy, Hannibal Industries, Inc., has gone from thirteen straight months of being in the red, to a full year of being in the black. They are not quite ready to begin growing their workforce, but the bleeding has stopped and they are once again profitable. They have maintained the 185 employee level with no plans for further lay-offs. They have also brought in an additional 70 employees through a local staffing agency as temps, poised to leap ahead and grow with the anticipated recovery.

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