Akron, Ohio-based Myers Industries is embarking on a significant strategic overhaul, marked by the closure of two manufacturing facilities in Alliance, Ohio. This decisive action is a core component of the company’s broader effort to streamline operations and aggressively cut costs, a necessary response to challenging market conditions and declining sales.
The affected facilities, specifically two rotational molding production plants, are located at 2290 W Main St. and 500 W. Main St. in Alliance. Their idling signifies a critical shift in the company’s manufacturing footprint, with production capabilities being consolidated into other existing Myers Industries locations to enhance overall efficiency and reduce operational redundancies.
This major restructuring initiative was unveiled alongside Myers Industries’ second-quarter 2025 earnings report, which highlighted a nearly 5% decline in net sales compared to the previous year. The company recorded $209.6 million in sales for the quarter, reflecting a broader struggle within its vehicle and automotive aftermarket segments that has prompted a re-evaluation of its business model.
The financial implications of these plant closures are substantial, with Myers Industries projecting annual savings of at least $3 million. This cost-cutting measure is aimed directly at boosting profitability and strengthening the company’s financial resilience in a competitive landscape, allowing for greater investment in its core growth areas.
A significant consequence of this corporate strategy shift will be the impact on the local workforce, with 153 employees facing job losses as a direct result of the Alliance facilities shutting down. This highlights the human element of corporate restructuring, as companies navigate efficiency gains against the backdrop of community employment.
In a parallel move to its manufacturing consolidation, Myers Industries also initiated a strategic review of its Myers Tire Supply business. This segment, which generated $189 million in revenue over the past year, is now under scrutiny, and the review could potentially lead to its sale as the company seeks to narrow its portfolio and intensify its focus on core industrial, infrastructure, and consumer markets.
Despite the reported decline in sales and net income, Myers Industries demonstrated an improved free cash flow, reaching $25 million in the second quarter. This improvement in cash liquidity provides a positive signal amidst the restructuring, indicating a healthier operational cash generation that supports the ongoing transformations.
The strategic overhaul underscores Myers Industries’ commitment to long-term sustainability and profitability, realigning its operational structure and business segments to better respond to market demands and achieve sustained growth in its prioritized sectors. The comprehensive plan is set to redefine the company’s future trajectory.
