TWIA Commercial Property & Casualty
Knutson Construction lays off 40, closes Iowa office
Sep
Dive Brief:
- Minneapolis-based Knutson Construction is shutting the doors of its Iowa City, Iowa, office on Oct. 3, according to a WARN notice the builder filed with the state.
- As a result of the closure, the company will also lay off 40 employees, according to the notice. John Curry, Knutson’s CEO, told Construction Dive in a statement that the decision was the right one for the business as it shifts its strategic priorities.
- Knutson will still perform 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, out of Mankato, Rochester and its headquarters in Minneapolis.
Dive Insight:
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 can affect 50 or more workers, according to the Department of Labor. Iowa’s laws are stricter — they require companies with 25 or more employees to give at least 30 days notice, according to the state.
Curry said that the biggest priority over the next several months is to make sure the transition goes smoothly for clients and partners.
“This was a difficult decision as we understand the impact it has on our 40 employees based [at] this location, but it was the right decision for the business as we shift our company’s strategic approach to allow for new opportunities to grow and expand,” 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 1911, according to Knutson’s website. The company reported $502 million in revenue in 2023 on Engineering News-Record’s list of the top commercial contractors in the country.
The closure comes amid a jobs report that showed evidence of a slight softening in demand for commercial construction labor positions. Approximately 2.9% of all construction positions went unfilled in July, a smaller share of open spots than June’s 3.5%, according to Bureau of Labor Statistics data released last week.
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