The Roanoke Times | File June

Cycle Systems' business was booming six months ago when metals fetched a good price and demand was high. Bottom: Scrap awaits recycling at the Roanoke facility. Decreased demand for some materials has hurt business.

Roanoke-based Cycle Systems laid off 35 employees last week across the company's eight locations.

Five workers in Roanoke lost their jobs.

The company attributed the cuts to the faltering economy and decreased demand by automakers, steel manufacturers and other industrial clients for recycled metals and processed scrap.

It was the first time in Cycle Systems' 92-year history that the family-owned company has laid off more than a couple of employees at once, President Jay Brenner said.

On Tuesday, sounding somber, Brenner said the current economic slowdown is the worst he's seen during his 22 years with the company.

"We've had downturns before," he said. "But never this drastic, this fast."

He added, "In about two months, we lost 60 percent or more of the value of our commodities."

Less than six months ago, Cycle Systems' business was booming, demand was high, metals fetched a good price and residents of the region were happily peddling metal they had collected.

At the time, the company had 245 employees. Before last week's layoffs, employment, through attrition, was down to 235 and is now 200, Brenner said.

In addition to Roanoke, Cycle Systems has operations in Charlottesville, Harrisonburg, Lynchburg, Martinsville, Pulaski, South Boston and Waynesboro/Staunton.

In recent weeks, many steel manufacturers have announced sharp production cuts in response to plunging prices and declining demand.

Minimill steel manufacturers such as the Steel Dynamics Roanoke Bar Division plant in Roanoke rely on scrap metal to produce steel. Joe Crawford, the division's vice president and general manager, could not be reached for comment Tuesday.

Jacob "Jake" Brenner, a native of Latvia, founded the company in 1916 as Roanoke Scrap Iron & Metal (not to be confused with Virginia Scrap Iron & Metal on South Jefferson Street).

First located on East Campbell Avenue near the railroad shops, the company's headquarters and its adjacent scrap yard now occupy about 22 acres along U.S. 220 near the intersection of Franklin Road and Wonju Street.

Roanoke Scrap moved to the current location in 1950 and became Cycle Systems in the mid-1970s.

Meanwhile, shaky economic conditions have led to layoffs among several other businesses in the region, and the Virginia Employment Commission has said more job cuts seem likely.

On the Net: www.cyclesystems.com.