Lyco Innovations this week revealed eight of the company's 104 staff were being made redundant while Laminex, which runs three plants in Ballarat, has started looking at its shift operations.

In a statement, Lyco managing director Richard Lyons said he regretted the announcement.

"Unfortunately these redundancies are necessary to lower our operational costs in line with lower demand for our products and services," he said.

"Demand has been affected by the ongoing national drought combined with the recent global economic uncertainty.

"We feel for those individuals directly affected by this decision and wish them well in finding alternate employment."

The statement said work at the company was continuing.

"Lyco continues to develop new products and alternate market opportunities including (a) recent export inquiry and remains confident of the longer term outlook for the organisation," Mr Lyons said.

Meanwhile, Laminex chief executive officer David Worley said the company had not announced any redundancies yet.

"We have started a consultation process because of a reduction in demand," he said.

The consultation process will look at reducing the the shift operations of the Ballarat plants from seven days to five days a week.

"We have not announced any redundancies yet but we have certainly signalled our concern and signalled the need to potentially do that."

The firm employees 117 workers at the three plants.

Ballarat Trades Hall secretary Graeme Shearer said the redundancies were a sign of the times.

"Unfortunately the retrenchments are probably indicative of things to come as companies become leaner and meaner in an attempt to blunt the effects of the global recession and the impact that will have on local industries

and business," he said.