Posted on 05/23/2008 8:16:35 AM PDT by WesternCulture
Swedish furniture maker Ikea celebrated the opening of its first factory in the United States on Wednesday.
Swedwood, a subsidiary of home furnishings giant, has 40 plants worldwide. The $281 million plant in Danville, Virginia will employ 300 people by the end of 2009, said Swedwood North America president Bengt Danielsson.
Virginia Governor Timothy M. Kaine was at Wednesday's ceremony to hail the economic boost to the ailing region along the North Carolina border, formerly a stronghold for the tobacco industry.
Swedwood received $12 million in incentives from in state and local authorities, as well as the Virginia Tobacco Commission funds.
"They're a lot more forward-thinking than some other communities in this corridor,” Ikea spokesman Joseph Roth said.
The Swedwood operation alone won't shore up the economy of a region with one of Virginia’s highest unemployment rates.
But local officials say the plant opening is an indication that things are going in the right direction.
Ikea currently operates 34 retail furniture outlets in the United States.
I’m guessing the weak dollar had a lot to do with this.
Southside Virginia has always had a strong furniture industry until recently, although Danville’s more been known for textiles.
}:-)4
Swedish furniture made in the USA by Mexicans?
Well, in my neck of the woods, we deindustrialized right after WWII and we are still doing well. Cheap dollar (and labor costs, compared to Sweden) means good news for folks in that part of Virginia.
“I’m guessing the weak dollar had a lot to do with this.”
- Probably, but it also indicates that an underestimated currency might have some advantages to it.
The economy of the US is not performing worse than some years ago BECAUSE of the low, present appreciation of the dollar, sooner there is a distrust in the dollar because of the poor recent development of the US economy.
The Euro has gained a lot of ground on the dollar recently, but my prediction is that soon the dollar will rise again, even though it won’t reach levels like those we saw during the introduction of the Euro.
Is this SW VA? Dan River? What county, do you know?
As great as the IKEA catalogs look, I learned my lesson after purchasing furniture there. Never again.
Does this mean if I grow a bunch of cheap, soft pine that’s practically balsa wood, I can sell it to them?
IKEA’s head man is listed as the richest man in Europe.
Ikea is good furniture to have if you don’t move very often. It’s a stand-in for real furniture, essentially. And if you live in a city like Toronto where you pay $1200 per month to live in a match box, Ikea works beautifully because it was designed for situations just exactly like this. All my storage furniture is Ikea. I love it.
Here ya go, FRiend. Euro furniture manufacture opens up plant to stamp “Made in USA” on a bunch of cheap-crap cookie-cutter furniture.
No Chinese involved.
American jobs. American etc.
You for this or agin’ it? Your chance to be consistent!
- The future of the American economy looks very good and one reason is that whether the dollar appreciates, depreciates or remains at the present level compared to other leading currencies (especially the Euro of course) there are advantages connected to that particular scenario.
USA is a nation where work ethics, true spirit of entrepreneurship and capitalism, belief in education and liberty still exists.
Despite morons like Chirac and certain quarrels in the past between Europe and America, the free nations of the world will continue to lead the development of mankind and we will all prosper.
“Is this SW VA? Dan River? What county, do you know?”
Deep SW VA, Wise County, down by the NC border. My wife’s family is from Danville, her father lives in Big Stone Gap, by the TN/VA/NC border. I kid you not, he calls and asks when we’re coming down to the ‘hollor’ for a visit...not much down there
“Is this SW VA? Dan River? What county, do you know?”
I’m Swedish myself (just like IKEA), so I’m not really an expert of US geography, but I reckon it must be this Danville (just click the link):
http://en.wikipedia.org/wiki/Danville%2C_Virginia
Greetings from Gothenburg, Sweden
I know. When I was in Spain last November, a 50 Euro dinner was $75.
Once the Fed starts jacking up interest rates, the currencies will at the very least start moving to parity.
- Sounds very logical. The US is a very good country in which to invest today. Production is no exception, quite contrary.
Democratic, freedom loving nations like the US, the European countries, Japan, South Korea, India, Australia, Canada, etc, etc, will sure continue to invest in each other - and hereby we will support each other, not only in our common quest for prosperity, but also in our struggle for individual freedom and national sovereignty.
There is also, along the parkway a town called "Meadows of Dan" that has a lovely winery.
I confess to adoring IKEA, however that marks me as yuppified or whatever. I love visiting the stores and looking at the sample apartments "What you can do with $7000 and 500 sq feet"--and this includes kitchen cabinets and appliances, and a space for children to sleep!
It is so ideal for young folks starting out--comfortable and attractive. It's certainly not what I was brought up to value, which would be hand-crafted heirloom furniture made of fine hardwood, but I love the convenience of IKEA's stuff.
“I know. When I was in Spain last November, a 50 Euro dinner was $75.
Once the Fed starts jacking up interest rates, the currencies will at the very least start moving to parity.”
- You’re probably right.
I’m sure the dollar won’t continue to depreciate against the Euro year by year. The development of the world economy is often somewhat irrational, but in the long run it’s never downright insane.
Hope you enjoyed Spain. Personally I’ve actually never been there (most Swedes have though), but I’ve been to Portugal and the food down there was magnificent, the nature beautiful, the villages, towns and cities enchanting and the locals were among the friendliest people I’ve ever met.
Nope. Danville’s not down in Wise County; Danville’s in southern Pittsylvania County, on the VA/NC line about an hour north of Greensboro, NC. The city gets its name from sitting on the Dan River; and ironically, one of the town’s favorite sons, a former Congressman from the area, is named Dan Daniel!
}:-)4
Even though regional differences were evident (economically as well as culturally) everyone I met was unfailingly polite and helpful, including the Guardia Civil (national guard/state police). Out of the seven countries that I have visited in Europe, Spain is my fave by a kilometer (although I haven't been to Sweden).
When I first moved out on my own twenty years ago, I bought a bunch of stuff from the Ikea store outside Washington (Potomac Mills, world’s largest outlet mall for a time). Most of it was fairly junky, but that’s because I couldn’t afford their good stuff at the time. Their expensive furniture was fantastic; their budget stuff seemed just a better-looking version of what I’d find at any big-box store. I do have one small rolling white three-drawer unit from them, though, that’s been totally fantastic...still going strong, 21 years and many moves later!
}:-)4
Maps, in general, are often great fun.
Personally, I’ve nurtured a love affair with maps since the age of 7 or something.
In this regard, the Internet is a great tool to a person like me.
Speaking of the North East Coast of the US, I recently realized something interesting from a geographical/demographical point of view by goofing around, exploring the world as illustrated by satellite images using a virtual globe program/live search map; the world’s largest coherent urban structure by today is probably the conurbation of Washington-Baltimore-Philadelphia-NYC.
It is bigger, even population wise than Tokyo. On the other hand, the Ruhr Area of Germany will sometime integrate with the Amsterdam-Rotterdam-Utrecht-Antwerpen region of the Netherlands and Belgium, forming a urban structure housing 50 million inhabitants.
Al Gore would probably claim such a development constitutes a great threat against the sacred “environment”, but the expansion of true civilization is, luckily enough, not dependent on minds like his.
Illegal Mexicans making Swedish furniture that melts at 70% humidity. And I care?
- The country I live in, Sweden, is very different from other European countries like Germany, Italy and Spain, in the sense that those parts of Europe might constitute older cultures, although they are younger NATIONS.
Denmark, Sweden and Norway are, in fact, some of the oldest and most homogeneous nations of Europe.
“Even though regional differences were evident (economically as well as culturally) everyone I met was unfailingly polite and helpful, including the Guardia Civil (national guard/state police).”
- Glad to hear this. The Spaniards have a reputation of being open and friendly. Nice to hear you have good experiences as a visitor of Europe.
“although I haven't been to Sweden”
- Scandinavia is expensive, but by all means worth visiting (summertime, spring or early autumn is the best period). I've heard a lot of Americans say it's the part of Europe that resembles the US the most, but be prepared for Socialist attitudes and cockiness. On the other hand, it's just like Spain or the US; there are all kinds of people here..
“Illegal Mexicans making Swedish furniture that melts at 70% humidity. And I care?”
- Lots of them in Virginia?
Good for poor old Danville. They’ve been hammered over the past decade, tremendous job losses. They needed this, badly. Such a grand history, so much wealth from tobacco and textiles, virtually wiped out. Dan River bedding is now made in India.
Virginia has independent cities, so it's not part of a county, but it's surrounded by Pittsylvania County. Danville is on the Dan River, just above the North Carolina border. It's not really considered southwest Virginia; that's more up in the Blue Ridge. Danville's region is known as Southside, to Virginians.
Which begs the question, would Swedes prefer to have our Mexicans and Central Americans in place of what is currently living in Malmo? I know that my Polish cousins spend two years in a Latino neighborhood in Boston, and said that they had NO problems with their neighbors, and couldn't see what the fuss was about, considering all of the muslims that are pouring into Europe (including Poland, albeit in smaller numbers than other countries).
That’s pretty cool.... If you like that kind of crap.
Crap is crap, I don't care who owns the company. IOW, EUropeans using the USA to make dreck is just as bad as the Chinese using the USA to make dreck--just to get "Made in USA" on the label.
If the product is crap, I'd just as soon they made it elsewhere.
I'm not saying that as a matter of taste, but one of quality. A well made product I don't like the looks of isn't necessarily junk, if it is well made.
Sadly, the area is likely hurting for jobs, after all, between the Congress and the Courts hammering "Big" Tobacco (where people made a fairly good living on lots of 5-10 acre farms), people who grew another export product, world renown and used as a medium of exchange in places (as American cigarettes) are out of work there. So it is likely some economic development folks would sell their souls for an uptick in employment figures on their watch. And if things are lean enough, the people there will welcome any work that brings a paycheck.
- Being Scandinavian (Swedish), I always experience a great sense of pride whenever I hear about all the good things Nordic companies accomplish globally.
I've worked hard for Swedish industry in my life (I'm 38) and I don't exactly apologize for it.
Despite our small population, the Nordic countries (Iceland, Norway, Denmark, Finland and Sweden) is an economical power that rivals Germany and Russia (125% of Russia's GDP, 69 companies on the Forbes Global 2000 List, Germany has 57).
Like all cultures, Scandinavia is a paradox. People associate our societal concept with Socialism, the nanny state and limitation of the individual. I can clearly see the reasons why, yet we are a Capitalist powerhouse built on individual initiatives like that of Kamprad (founder and sole owner of IKEA).
People like him are admirable. They tower above ridiculous quarrels and the legendary strife between “The American Way of Life” and “The Swedish/Scandinavian Model”.
Well, I doubt very seriously that Ikea is doing this in order to get the "made in USA" imprimatur...since they sell on THEIR brand name, and if they'd wanted "Made in USA" they'd have done it long ago.
They're doing it for price, margin, and exchange rates.
I hope you'll consider my position on all this....mainly that it's not dreck manufacturers fault, it's consumers' fault. It's the MODERN CONSUMER that is demanding cheap crap over and over without a care in the world for durability. They want new, they want trendy, they want cheap, cheap cheap. And lots of it.
The market is providing what people want, and that is what is ultimately going to destroy what your 1950's perception of "Made in USA Quality" means.
I agree.
Just look at the cellphone buttons these days- the old calculators had the prints on keys that lasted beyond the life of the device itself, whereas in cellphones, a month or more of good use, and half the characters etched / printed on them are worn off beyond recognition.
In the old days, there was a reason why metal-coated etched plastic buttons were rarely used- they have very poor wear characteristics. Same with silver / metallic colours and chemical-treated "rubberised" finishes. Now, everything seems to have them.
“Which begs the question, would Swedes prefer to have our Mexicans and Central Americans in place of what is currently living in Malmo?”
- Personally, I don’t think Muslims belong in Europe.
There are individual Muslims that are admirable, but there is little admirable to say about Islam. Islam has some agreeable features to it, but on the other hand the Muslim world of today is extremly backward and unable of solving its own problems.
On the other hand, one must not underestimate how tired many Muslims are of living under the evil yoke of anti-humanist, ignorant Islamism.
Sweden is a very disciplined, thoroughly organized and aware society that for decades have been successful in adapting immigrants to the needs of one of the most successful economies on earth (Sweden had the highest GDP growth of all nation during 1870-1970 and although the period of 1975-1990 constituted a - Socialist - setback, Sweden is ever since the early 1990s again a beacon of Capitalist progress. Although Norway and Luxemburg are richer statistically speaking, the inhabitants of these countries do not enjoy a standard of living comparable to Swedes and no country can compete in the field of successful multinationals per capita - and our women are out of this world:D).
The spirit of Swedish Lutheranism will triumph over the evil Islamism.
Even in Rosengård, Malmö (often confused with Malmö as a whole among enemies of Islamism).
I dated a girl who was born in Colombia, but raised in Sweden. Kinda odd meeting a beautiful girl with Latin features, yet the Scandanavian personality.
Doing jobs Swedes won’t do?
I work in the electronics industry and, wow, the quality/durability is generally, afaict not considered ever!
In fact, you have to look at the design cycle time. It’s at least 6 months, sometimes as fast as 3 mos.
So companies are churning out essentially disposable cellphones, and televisions are maybe 2 years serviceability on the outside.
But, what’s the motivation or evidence that ANYBODY cares about it in their buying decisionmaking? Is there any metrics on battery life in anything? NO! I don’t mean numbers of hours operation per charge....because they do mention that.....but HOW LONG TILL THE BATTERY CRAPS OUT? May be 3 months on one phone I had. Awful! But how would anyone even know? And so how could anyone even make a decision about it?
But isn’t that what the ‘economy’ is based on? Quick! Buy a new one!
I have a metal “Made in USA” workbench from the 1960s. It’s pretty solid. Obviously, because it’s still in service. Though, the fit and finish of the stamped metal is maybe 1/8” tolerances...thus some of the drawers have a 1/4” whopper-jawed gap on them. Sure, they work, but would someone pay hundreds of 2008 dollars for such a sloppy looking heavy metal desk? No. A particle board desk might have milled finish that has super-tight tolerances and be $129. Maybe it’ll last for 3 years. Instead I paid $10 for this old used piece of junk, and it’ll serve my purpose for 10-15 more years.
So....didn’t I just screw over the people in Danville because I bought “Made in the USA?”
“They’re doing it for price, margin, and exchange rates.”
- Couldn’t agree more.
Businessmen like Bill Gates and Ingvar Kamprad are immensely successful because they master large scale business operations like these in a fashion no one else does and that’s the prime explanation behind their success - as well as these interest of (certain areas of) the consumer market of today constitutes the drive behind it all.
I of course have mixed feelings about the “tyranny of the market.”
It is a shame that quality, etc, is not universally valued by consumers in all segments of the market. And it is a shame that American consumers (myself included in many things) are so keen on cheap-cheap.
However on the bright side, the Gates and Kamprad types would go that way as soon as the free market demanded it, and it might just do that someday.
Some FReepers have scared me by suggesting that the Federal Government should be given more control over enforcing minimum quality standards for “Made in the USA” products...and that is surely the fastest way to send us to Soviet-style scarcity and stagnation in product design and feature availability.
“Doing jobs Swedes won’t do?”
- Are you referring to Muslims in Sweden?
Many Muslim immigrants to Sweden are unemployed, especially in the third largest city of the country, namely Malmö.
On the other hand, the situation is completely different in Gothenburg, Sweden’s second largest city and home to manufacturing facilities of Volvo Cars, Volvo Trucks, SAAB Automobile, SAAB Aerospace, AstraZeneca, Ericsson and SKF where I happen to live.
Since the 1950s, immigrants from all over the world who’ve settled here have had little problems finding well paid jobs in Gothenburg based industry and today Gothenburg streets are flooded with cars most other inhabitants of Europe can’t afford.
The best we can hope for is that Muslim immigrants to Sweden could be encouraged to adopt this culture of hard work, productivity and civilization persuaded to return to the medieval swamp they once fled.
- I am, for certain, not the right man to tell the Americans which path to chose in this regard, basically because I'm not American.
However, I feel every non-German and non-Swede ought to stay in a country like Germany or Sweden for a year or two and get to know what it really means to be “quality minded”.
Germany is one of the toughest markets there are and the foreign companies who've made it there are admirable. One of them is IKEA and although some people deem IKEA “junk”, I think it's safe to say that IKEA and founder Kamprad knew exactly what they were up to upon opening up the first German IKEA store in Munich back in 1974.
CORRECTION:
“The best we can hope for is that Muslim immigrants to Sweden could be encouraged to adopt this culture of hard work, productivity and civilization OR BE persuaded to return to the medieval swamp they once fled.”
Sorry.
Thinking about government intervention....I wonder if one way to encourage longer-term buying cycles might not be a capital-equipment depreciation type sales tax rebate?
In other words, something that might encourage buying and repairing a more expensive refrigerator rather than buying one and replacing it a short time later.
Something where the incentive is to keep products longer.
Probably a real bad idea to involve government at all, but it’s governmetn monetary policy and corporate tax policy and safety regulations and labor laws that got US manufacturing to where it is in the first place.
But it might help offset the resultant “quality” problem at the source: the consumer.
I imagine everyone was tired after assembling the facility with nothing but a hex key.
“IKEA here in Bratislava is a pretty neat store. I have bought most of my bedding, kitchen and other household goods there.
IKEA’s head man is listed as the richest man in Europe.”
- Some experts claim he’s actually the richest man on earth. There continues to exist a disagreement concerning whether Kamprad, technically, controls all of IKEA himself or not.
Being Swedish and also being aware of certain aspects of Swedish fiscal matters, I’m inclined to say Kamprad controls IKEA finacially, technically, emotionally and eternally but this issue isn’t of any greater importance.
Something of much greater importance is the fact that the part of Europe where you live recently was haunted by Communism but today is one of the fastest growing parts of Western Civilization in terms of economy and individual opportunity.
Soil reclaimed.
Well...I made the “Junk” comment as well...obviously, they sell all levels of stuff in many price ranges.
And you know, I have German heritage, and have walked around impressed at the Deutches Museum of technology outside Munchen....and it’s the only place in the world I can think of that has an exhibit devoted to machine tools and precision lathes!!!
On the other hand, Germans are renowned for their “New Dresden” plastic-box architecture, and frankly, it doesn’t float my boat. Cold. Minimalist. No, I’ll take victorian styled new furniture, or Western leather/hide any day.
In fact, I’ve never found a German or Scandinavian design shower which can keep from deluging the bathroom floor with water!!! They look sleek, and feel great....but they’re hardly functional at the basic level which is to keep water in the shower and headed for the drain!!!! =)
So we all have our strong and weak points!
I thought the richest man in Europe was someoene from Britain, but then again, these rankings change by the month.
Yes, and don't forget the beautiful girls, nature, and scenery. Notice my tag line.
Check out photos of Slovakia www.vvpg.net
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