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Trek Furloughs 300 Employees

Published March 22, 2009

MADISON, WI (BRAIN)—Three Hundred Trek employees based out of their Waterloo, Wisconsin manufacturing facility are now "rotating work weeks through these late winter months as a proactive way to keep overhead low, while retaining the staff" needed to deal with its new high-end production system, according to Trek's marketing manager Dean Gore.

That new system Gore refers to is Trek's updated approach to producing high-end bikes called Project One, which is a build on-demand system.

"When a dealer orders a new Madone we can build and ship—with a dealer’s or consumer’s custom spec—within seven days," Gore said. "With this approach, we have eliminated much of our need for 'in the box' high-end inventory. This gives us a much higher degree of flexibility and ability to supply our dealers with the right inventory at the right time. As a result, our winter labor needs have decreased."

Gore said that Trek's year-to-date sales are up from 2008.

"We fully anticipate a great spring selling season and increased production schedules in Waterloo to match the demand of the warmer weather months ahead," Gore said. "Our U.S. manufacturing facility is one of the keys to our build-on-demand Project One system and is a competitive edge which Trek plans on offering to our dealers long into the future."

—Jason Norman

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