The national credit crunch hit makers of modular housing particularly hard. Patriot Homes in Elkhart County filed for bankruptcy last month, sending about 100 workers home this week. But the company hopes to be able to bring the workers back next week. (WSBT photo)
Story Created:
Oct 16, 2008 at 5:01 PM EDT
Story Updated:
Oct 20, 2008 at 12:25 PM EDT
ELKHART COUNTY -- Labor statistics show Elkhart County's jobless rate has increased more than any other metropolitan area year to year. RV industry layoffs play a major role in those numbers. At the beginning of August, about 9 percent of people in Elkhart County were out of work.
But an Elkhart County company that laid off 100 employees this week is planning to bring them back next week. The workers make manufactured homes for Patriot Homes.
A Chapter 11 bankruptcy filing is allowing the company to stay in business, but reorganize its debts. Patriot is close to meeting certain guidelines that bankruptcy court set. And it hopes things are back to normal for workers on Tuesday.
"With banks being afraid to loan to each other, it's difficult to find banks that want to loan to you," said Patriot Homes president Sam Weidner.
Patriot Homes is not only having a hard time paying its operating expenses. The company is also finding that people can't come up with the money to buy its modular homes.
"How long could you make it without a paycheck?" asked plant foreman Mike Cox.
Most of the 100 idled workers filed for unemployment. You can file a claim online at https://uplink.in.gov/CSS/CSSLogon.htm
Here's what you need:
1. Your complete name and address
2. Social Security number
3. Driver's license or other ID
4. Your most recent employer's name and address
5. Dates you worked
6. Reason you are unemployed
By law, you can't collect benefits for one week after you've filed.
"Unemployment's set up so you pay into it, you get the money back when you need it. Sometimes it doesn't come soon enough," Cox said.
That's why next week can't come soon enough for Patriot Homes, whose president is hopeful things will work out.
"We're counting on our suppliers, employees and our customers," said Sam Weidner.
To give you an idea of how much the modular home business has suffered, in 1999, Patriot Homes' sales totaled about $300 million. This year, the figure is expected to be around $70 million.