WATERLOO - Another round of layoffs has come to the Waterloo operation of O'Neal Steel Inc.

The Birmingham, Ala.-based company, whose Waterloo plant at 2600 Sergeant Road supplies a variety of products to customers in the agriculture and construction industries, has idled about 12 more workers in the last several weeks, according to the plant's general manager, Blake Bannon.

It is the third round of layoffs this year at the plant, which O'Neal purchased from Weisman Steel in 1995.

The recession is the heart of the problem, Bannon said.

"Demand for the ag market is still pretty good, but it's probably declining," he said. "But in the construction market, equipment manufacturers are taking a beating."

The latest layoffs bring to about 30 the number of the local plant's normal work force of about 75 who are out of work. That includes five salaried employees.

"July has been historically a month of shutdowns with original equipment manufacturers," Bannon said. "But it's much heavier this year. Many of our customers are working at much-reduced production rates."

The layoffs are only temporary, though.

"We think things are going to be better after July, because there are so many plant shutdowns set for July, anyway," Bannon said. "It's all dictated by demand. You just try to sell more steel."

The company's largest customers are Terex Cranes of Waverly and John Deere. Terex, based in Westport, Conn., has had several rounds of layoffs and two temporary plant shutdowns this year.

"My opinion is that the Cedar Valley is a little insulated because John Deere has been strong on the ag side," Bannon said.

Bannon did say O'Neal was doing its part to compensate for the downturn.

"We have brought in a new product line to expand sales, really moving toward not a different model but adding market niche with a different stock offering," he said. "We brought in about 400 new items here."

That program, designed to service small and mid-size customers in the region, was launched in March, Bannon said.

"It's really more distribution work with raw materials to more midsize manufacturers, machine shops, fabricators doing a lot of business in our area here," Bannon said. "We think there's a nice market here if we just try to take advantage of it."

The new distribution business has done well, so far, Bannon noted.

"We've had great reception," he said. "A lot of folks very willing and wanting to buy local. We try to enhance our service with same-day, next-day deliveries within a 60-mile radius."