Automated Conveyor Systems in Lynchburg laid off 17 workers last week, about one month after having a similarly sized layoff.
About 20 people were laid off in December.
Michael Shenigo, vice president of ACS, said Friday that ACS has upgraded to new, faster equipment that allows the company to consolidate its shifts more.
The layoffs mostly involved temporary employees, he said, and they did not undo the growth the company has experienced in recent years.
“Last year, we had what I would call phenomenal growth,” Shenigo said. Sales were up about 25 percent, which was growth company officials hadn’t anticipated. Shenigo said ACS hired 80 employees last year.
The growth came from making conveyor systems for new factories, he said.
ACS has been in business for more than 30 years. It makes and installs conveyor systems used by factories, mostly in the corrugated packaging and furniture industries, Shenigo said.
Most of its customers are outside the Lynchburg area. Shenigo said some of its conveyor systems go to overseas factories.
In December, ACS reported a layoff of about 20 employees, 16 of whom were temporary. Bill Wise, human resources manager, said the company’s backlog was down.
Shenigo said most of the 17 employees laid off this week were temporary employees, and 14 had six months or less of service.
The company now has about 180 to 200 workers, about 50 more than it had three years ago, Shenigo said.
He said the company has a healthy backlog, but it also is consolidating its shift work to help the company be-come more profitable.
The factory was operating on three shifts, but they were not three full shifts.
The company has bought new machines that run faster, allowing the company now to produce on two shifts what it used to produce on three.
“Like every manufacturer that wants to stay around, we’re making what we hope are positive changes,” Shenigo said.
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