Rusånes Fabrikker runs production for one of Norway’s largest cabin manufacturers, Saltdalshytta. In total, the factory in Russånes employs approximately 62 man-years. Now 50 will be laid off. The news comes just two days after the window manufacturer Natre announces that 100 people will lose their jobs in Hemnes. Managing director Stene Tømmeraas Bergsløkken in Rusånes Fabrikker points to a decline in demand for cabins and a hard interest rate policy as reasons for the layoffs. – After the summer, we experienced an abrupt stop. By then there had already been a decline in the cottage market for a while, he says. Stene Tømmeraas Bergsløkken is general manager of Rusånes Fabrikker and managing director of Mestergruppen boligproduktion. Photo: Privat The cabin manufacturer also experienced lower demand after the pandemic. – We had a downsizing last autumn to adapt to a lower level. What we are doing now is a response to the short-term situation with an emergency brake in the market. If it had been long-term, says Bergsløkken, they would have opted for downsizing instead. He adds that the Forecast Centre’s forecasts predict a market increase in 2024-2025. – But there is a short distance between heaven and hell here. If you get to a level that is half of what it was before, it should go quite well. The economic effects briefly explained It may not be as obvious to everyone how interest rates, inflation and demand are connected. The key interest rate has been repeatedly set by Norges Bank. The effect is, among other things, that ordinary households, like you and I live in, but also businesses such as Rusånes Fabrikk, get less money for consumption and investments. The fact that you have a reduced desire to invest is due, for example, to the fact that loans have become more expensive and that the demand for the goods and services you produce has decreased. When the demand for, for example, cabins falls, the cabin manufacturers have to adapt. This can lead to lower cottage production and increased unemployment. The effect of that, in turn, may be that wage growth and price growth are dampened. In the first instance, the redundancies are assessed until after the new year, and from there it is assessed on an ongoing basis. They come into force approximately at the end of October. Bergsløkken adds that the capacity they choose to keep is enough to take care of property and valuables, and that they are able to attend to and meet requests from customers. – Very regrettable – When you get such a large decline in such a short time, at the same time as we enter winter, which is a low season, then we have to adapt to the market situation. Bergsløkken says that they have faith that the market will improve over time. In total, the factory in Russånes employs approximately 62 man-years. Now 50 employees will be made redundant in the first instance until the new year. Photo: Kåre Riibe Ramskjell / news – We on the board think this is very regrettable, but do not think the situation will be so serious for so long. – It is also the background for us to launch new products such as project homes and garages. By expanding our product range, we hope that we will have more legs to stand on, he says. Rusånes Fabrikk is not the only one to have felt the financial pressure. Støre Treindustri in Midtre Gauldal has had to make employees redundant as a result of developments in the cottage market. 35 employees were made redundant before the summer. – It is a local phenomenon which is based on the same thing, says general manager, Håvard Døhl. – It is rooted in a halt in new construction, high interest rates and the generally high level of costs. Times of crisis in the holiday home industry – This applies throughout the country. Not just in the north, says chairman Trond Hagen of the Norwegian Cabin Association. – There is a complete standstill in the cottage market. You could almost call it collapse. New sales of cottages have come to an abrupt halt. The industry has been reduced by more than 50 percent from last year, according to him. – We already predicted this last year. Then we thought it would be reduced by 30 percent. But now it turns out that it is at least twice as high. He says that new cabins are no longer being sold or built. The reason? Hagen believes that costs are generally higher. – This is because loan costs, general costs and interest have increased. It is about the general cost level. He says that this also means that there are fewer people in the cabins. People simply cannot afford it. Trond Hagen, Chairman of the Norwegian Cabin Association, says that fewer people are also going to a cabin because the general cost level has increased. Photo: Dag Kessel / news In addition, he believes that it is a consequence of the fact that no electricity support was given to holiday homes last year. – The state is probably losing more now than if they had given electricity support to holiday homes, he believes. He justifies this by the fact that local companies, craftsmen and carpenters no longer receive assignments. – These are almost crisis times in the holiday home industry. It’s a downward spiral. Drastic measures are needed to rectify this. – Have received rather gloomy feedback Regional director Hans Christian Kaurin Hansson for Nordland in NHO says the news from Saltdal confirms a tendency they see in their recent member surveys in the county. He says that NHO Nordland has made a round of calls to members about the situation, and has received rather gloomy feedback. Hans Christian Kaurin Hansson in NHO says that the government should look at measures against the negative trend in the construction industry. Photo: Lars Fredrik Martinussen – Within housing construction, for example, it is almost at a standstill here in Bodø. In the second quarter of this year, there have been three start-ups, compared to 80 start-ups in the same period last year. – It will be felt, says Hansson. NHO now believes that both Husbanken should be strengthened and that the government should consider looking at more industry-specific stimulus packages. – In Nordland, we risk losing important expertise if we move too deeply into a dark and long-lasting wave valley.
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Saltdalshytta lays off 50 employees – times of crisis in the cabin and holiday home industry – news Nordland
