Housing crisis: JCB lays off Savannah workers

Construction equipment manufacturer J.C.B. is laying off 120 employees in a sign that the housing crisis continues to drag down Georgia's economy. It's the latest in a series of blows to southeast Georgia's jobless rates.

Savannah is the North American headquarters for J.C.B., a British company that makes backhoes and other construction equipment. The layoffs take employment at the Savannah plant down to about 400. Company spokeswoman Karen Guinn says, J.C.B. had to take action since orders are down about 20%.

"Our business is very heavily reliant on the housing industry and with that hitting a 17-year low, it's had a pretty significant impact on our business," Guinn says. J.C.B. has no plans to close the plant, she says.

The news comes days after trailer maker Great Dane said it would close its Savannah plant, idling 270 workers. Labor officials said this week that 1,400 workers in Savannah's 3-county metro filed initial unemployment claims last month, a spike of 62% over the same month last year.