Armstrong World Industries reveals layoffs citing weak economic outlook

A worsening economic outlook led Lancaster-based Armstrong World Industries Inc. to lay off 30 employees, including fewer than 10 here, in a move the global ceiling and wall panel maker expects will save $6 million in the second half of this year.

The cuts, made in January, were revealed in a call with investors this week.

“We experienced weakness in our end markets as we ended 2022 and we expect that demand weakness in commercial construction to continue in 2023,” wrote Theresa Womble, vice president of investor relations and corporate communications, in an email to LNP | LancasterOnline. “So we had to make some difficult decisions on our spending levels. This involved a careful review of our entire organization and our growth investments. Ultimately, we trimmed about 30 positions, less than 10 of these were at our Lancaster campus.”

Headquartered on a 100-acre corporate campus in Manor Township, Armstrong World Industries is ranked as the 23rd largest employer in the county.

The 160-year-old company, which designs and makes ceiling and wall panels, said it continues to invest in growth initiatives, particularly an ecommerce platform called Kanopi by Armstrong, which is drawing new customers to AWI, and its Healthy Spaces products, which taps into the growing post-pandemic desire for better indoor environmental quality. Also seeing investment for growth is the company’s architectural specialties arm, which manufactures and sources ceilings and walls for use in commercial settings , as well as its production plants.

Victor Grizzle

“We feel fortunate to only have impacted a few positions in Lancaster county, despite the economic challenges being felt across the country,” AWI CEO Victor Grizzle wrote in an email to LNP | LancasterOnline after the call with investors.

The cuts affected sales employees involved with a digital project known as Lead Optimization Engine. Grizzle told investors that the digital sales tool will continue to be used but not further developed.

None of the approximately 350 positions at its plant at 1507 River Road in East Donegal Township were impacted.

As of Dec. 31, AWI had roughly 3,000 full-time and part-time employees in eight states and Canada, according to its annual report to investors. It estimated it had 2,800 in 2021.

The company reported $1.23 billion in net sales for 2022, an 11% increase over 2021. The company anticipates $1.26 to $1.31 billion in net sales for 2023, which is a 2% to 6% increase over 2022. The company said it expects lower market demand to be offset by initiatives in the Mineral Fiber segment to result in the single digit increase.

Executives told investors that the double digit growth was achieved despite challenging market conditions that primarily pressured its mineral fiber ceiling tile business, which includes the East Donegal Township plant. The Mineral Fiber tiles make up about 74% of AWI’s sales. They are made of mineral wool, which is a byproduct of steel making and perlite, starch, recycled ceiling panels and recycled paper.

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After a 15-year career with the company, Douglas Brossman, 64, of East Hempfield Township, will continue to serve as a director on its board. He also serves on the Board of Directors for High Industries, Inc. and High Real Estate Group, LLC.

The company said in court documents this week it intends to sell equipment from its Freedom Road tech center in East Lampeter Township.

“The older we get, the more we appreciate it,” said Wise of Armstrong Flooring as he sat recently with other retirees at Hong Kong Garden on Columbia Avenue in the Wheatland Shopping Center. The restaurant was where Armstrong Flooring employees used to fill the tables at lunchtime years ago. The retirees still meet there regularly, a testament to the enduring friendships forged among generations through work at the company.

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The company wants to sell a 1-acre lot in Manheim Township for $295,000 to a Lancaster developer.

Here's a look at some of the features from AWI.

Public tours of the facility are planned as part of a ribbon cutting celebration on Tuesday from 4:30 p.m. to 6:30 p.m.

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