American Cast Iron Pipe Co to cut 59 workers in Birmingham

American Cast Iron Pipe Co., one of the Magic City’s largest employers, said Tuesday it plans to release another 59 workers, the second sizable layoff in a little more than two months.

The Birmingham-based maker of iron and steel pipes used for water, oil and natural gas transmission said employees were notified Tuesday. The layoffs will take effect Oct. 8, the company said, and the workers are eligible for recall if business conditions improve.

It has been a rough period for pipe makers. ACIPCO — one of three industry-leading pipe makers based in Birmingham — released 80 workers in August. Birmingham rivals McWane Cast Iron Pipe and U.S. Pipe & Foundry have idled or closed plants in Birmingham this year, costing almost 500 jobs.

Pipe makers depend on governments expanding spending on water and sewer systems and on new homes getting hooked up to those systems. Both categories have stagnated.

Government deficits have cut into water system upgrades and repairs, with the industry estimating that spending will be down 2 percent when 2010 is over, even with a $7.7 billion federal stimulus package.

Housing is worse. According to the U.S. Census Bureau, new housing construction starts in the South fell 8 percent from July 2009 through July 2010.

The three-year trend is off the cliff. In July 2007, there were 649,000 starts in the South. In July 2010, there were 267,000, a 60 percent drop, as home sales stalled during the recession.

ACIPCO was founded in Birmingham in 1905, and also makes hydro valves and fire hydrants. The company now employs 1,730 people in the Birmingham metro area.

The newest ACIPCO job cuts keep the layoff drumbeat rolling in Alabama. So far in 2010, about 5,100 jobs have been cut in Alabama from companies required to notify state authorities of substantial job cuts. Last year, there were 15,200 such reductions.

From: Alabama Live