C.P. Morgan Communities LP, the Indianapolis area's largest home builder, this morning confirmed it has made a "workforce reduction" as a result of the slowing housing market. The privately held company would not reveal how many jobs it cut or the types of positions eliminated.
According to IBJ's 2007 Book of Lists, C.P. Morgan filed 2,355 home permits and completed 2,426 closings in 2005, by far the most in the city. Founded in 1983, the company is most active in Greenwood and in Franklin Township in Marion County. The homes average $135,000 and 2,400 square feet.
C.P. Morgan posted revenue of $510 million in 2006 and ranked 25th among private companies in the state, according to IBJ research. In May, the company said it had 360 employees in Indiana.
In a written statement, C.P. Morgan Corporate Public Relations Manager Blair Kendall said the reduction was difficult. "However, as an industry leader, we must take decisive steps to ensure our continued strength and leadership in the central Indiana housing market," Kendall said.
Dax Meredith, Indianapolis market director for Houston-based home building industry research firm Metrostudy, said it is common to see home builders trim headcount or cut back on land deals when market conditions change.
"Companies need to realign themselves and try to get back to where they're turning profits," he said. "You don't need as many people when you're not closing as many homes as you were in the last couple of years. It's just an unfortunate part of the business."