Knutson Construction, a Minneapolis-based firm, is closing its Iowa City office on October 3, impacting 40 employees who will be laid off as a result. This decision, according to Knutson’s CEO, is part of a strategic shift for the company. Despite this closure, Knutson will continue its operations in Iowa, including starting two new projects this fall. The company will also maintain its presence in Minnesota with its offices in Mankato, Rochester, and its headquarters in Minneapolis.
The closure comes in accordance with the Worker Adjustment and Retraining Notification Act, which mandates that companies with 100 or more employees provide 60 days’ notice before a major layoff or plant closure. Iowa’s regulations are even stricter, requiring a 30-day notice for companies with 25 or more employees.
Knutson Construction’s decision is driven by a need to realign its strategic focus. The company, founded by Norwegian immigrant Thor Knutson in 1911, has a long-standing history in the Midwest. It reported revenues of $502 million in 2023, making it one of the top commercial contractors in the country.
The office shutdown reflects a broader trend seen in the recent jobs report, which indicates a slight easing in demand for commercial construction labor. According to recent Bureau of Labor Statistics data, about 2.9% of construction jobs were unfilled in July, down from 3.5% in June.
As Knutson Construction navigates this transition, their priority will be to ensure a smooth shift for both their clients and partners. The firm remains committed to its strategic goals, focusing on growth and expansion opportunities even as it scales back its operations in Iowa.
