Posted on 08/23/2004 10:11:25 AM PDT by Willie Green
For education and discussion only. Not for commercial use.
HIGH POINT -- State and national economies are gradually improving, but furniture companies continue to announce layoffs despite an effort to stem imports from China.
Last week Hooker Furniture announced it would close a plant in Maiden near Hickory. The move will cost 240 workers their jobs when the shutdown is completed this fall.
The erosion of American furniture manufacturing employment reflects an extended and painful economic structural change, said Don Jud, professor emeritus of business administration at UNC-Greensboro.
"In my view, it's part of a long-term trend that just continues, one that we've already seen in textiles and apparel," Jud said.
Among other furniture manufacturing job losses this year:
The number of American workers in furniture and related products dropped 14 percent from 674,900 in January 2000 to 581,700 in July, according to the U.S. Bureau of Labor Statistics.
In North Carolina, the furnishings-related work force fell 27 percent from 78,500 in January 2000 to 57,400 in July, according to bureau statistics.
Nearly all major U.S.-based furniture manufacturers have operations in China to take advantage of lower-cost production, Jud said.
"It comes down to the old concept of a shrinking globe," said Jerry Epperson, an industry analyst in Richmond, Va.
Jud said that some level of furniture manufacturing will remain in the United States as companies respond to niche markets or trends.
While overall furniture employment has declined, U.S. manufacturing jobs in wood kitchen cabinets and countertops increased 9 percent from 147,300 in January 2000 to 160,400 in June.
"But a lot of the mass-market stuff I think will be done overseas, and it's made even easier by the decline in international shipping costs," Jud said. "The American consumer has shown that they want to buy quality products at the lowest possible price."
Johnston Benchworks in NC appears to be doing well. I've got a few of their pieces.
Save up for and buy the American made product. You'll save money in the long run by not having to replace it every few months.
Now, now. Willie doesn't like it when you contradict his doom-and-gloom postings with good, common sense. You're supposed to rail at unfair foreign competition, and cheer for mass transit.
Chinese furniture is clearly inferior to many American pieces and nearly all European ones. You get what you pay for.
SOme may call me naieve, but, If we were to BUY AMERICAN at all opportunities, would this really be such a problem?
If we'd just buckle under, pay a little higher price American Comapnies need to meet the Union Wages and Envorinmental standards, imports would not hurt us as much.
I have very little symapthy. In our house, we still have cheap kit furniture in some rooms. We buy nothing on credit and pay only cash for furniture. However, when we do buy it, we go for quality. Most Americans, used to living in houses packed with "toys" and decorated well beyond their true means, would probably think we were quaint or even poor, even though we clear more than 90% of the people in this country.
Oh and by the way, that cheap kit furniture I mentioned is all circa late 1980s, Made in the USA.
You are sooooo behind! We have the most educated, independant, creative workforce in the history of the world.
There are plenty of people willing to pay top dollar for that which is well made with an individualistic flare or customised to their specs.
Unfortunately, it looks like a lot of furniture companies were top heavy with unimaginative clock watching management who thought is was their right to churn out the same dull cheap crap the chinese do, but at higher prices all because they are American or Union.
Newsflash: the macro-industrial revolution has been over for 20 years or better. Micro-industry is where it's at, fast, innovative, decentralized and responsive to changing consumer demand (when it's not flat out creating consumer demand because it so far in front of the pack).
Hippies? NOT
but the average american consumer does not see quality - only price at th point of sale. this chinese furniture is crap, I'd go with american made all wood unfinished furniture and assemble and stain it myself first.
ah yes, another dreamer prediction about the jobs being outsourced eventually being replaced totally by automation.
just like agriculural harvesting - why isn't it done totally by machine? well, because the availability of low cost labor from mexico means that no one would invest to develop the technology to automate it - it doesn't pay since the labor works for so little. that's the other problem with offshoring, it destroys the normal business cycles for investment in automation, the ultra cheap labor makes it un-economical for any company to take the risk to invest in new technology - why bother, when there is some chinese guy chained to a milling machine cranking out furniture for $2 a day.
right. who needs an auto industry, give it to china, and let the americans crank out custom made skateboards.
Statistics refute that claim.
Are you responding to someone else's post? I never said anything even remotely resembling that.
I'm talking about small business, small producers, innovators and entrepreneurs connecting with their market directly via the internet. It isn't just the beer industry getting squeezed by micro-producers.
But they are trying to sell the same crap as importers, only at a higher price. Go to the furniture stores, crap from wall to wall and not a damn bit of difference in the domestic from the imports, exept the sticker price.
Then they whine for protectionism when they ought to be ashamed of the stapled junk they're trying to sell.
People WILL buy American, when they are getting a premium product worth the money asked for it.
"...we will pioneer the move to customized semi-massed production via internet marketing"
Basically, what you are saying is that the jobs going offshore represent yesterday's technology, and some new wave is coming that the US will pioneer.
and what I am saying to you is - where is the new technological wave that has made migrant farm workers obsolete? there isn't one. why not? because who would invest to make it possible, when the labor costs being automated are so cheap?
Oh please, we are the richest, freest nation in the history of the universe.
Who am I gonna believe, your "statistics" or my own lyin eyes?
I think the eyes have it!
I'm afraid I can't join you in your pity party.
"...we will pioneer the move to customized semi-massed production via internet marketing"
I don't know that the technology is going to be all that new in all sectors of the economy, just the size of the production run, quality control and the manner of marketing.
And perhaps you aren't reading enough agro-tech news to know that our food production is being outsourced as well and taking the migrant farm jobs back to where they came from.
This is the last year any American grown asparagus will be canned or frozen in the U.S. for American consumption. The entire canned/frozen asparagus industry has moved to SA. All that's left for the American producer is the fresh market.
I am aware of beef producers bypassing the feed lots and marketing direct to upscale restaurants. They use ultra sound technology to grade and guarantee the beef on the hoof.
I have a friend who raises organic USDA lamb and sells all over the Pacific Northwest.
It's not so much a tech revolution as a marketing revolution created by the internet. Ebay is an example and just the tip of the iceberg. Wal-mart success is based on it's real time inventory control and ability to find, transport and market products cheaply.
BTW, I am a supporter of agricultural protections to some extent since food production is a vital national security issue. My solution is simply to make family farm income non-taxable. No welfare for corporate farms. It is the small farmer that will feed us in times of disaster, not General Mills or Tyson Chicken. And it's the corporations moving production overseas so let them and good bye to them.
This might also spur the tech innovation on harvesting machinery as labor would become a huge expense to be dispensed with.
http://www.freerepublic.com/focus/f-news/1197675/posts
snip>A state board has approved a series of proposals to loosen hunting regulations in Alabama, where hunting is a $3 billion industry helped along by one of the nation's longest game seasons. Under the new rules, hunters could use turkey decoys, crossbows and sights on muzzleloaders — practices that are all currently banned.
The Alabama Department of Conservation and Natural Resources says the changes are aimed at adding more options for hunters, and the move already has opened up new marketing opportunities for hunting manufacturers and retailers. While the changes still aren't final, Wal-Mart stores in the state have started stocking crossbows from $159 and up.
Wal-Mart is ready with product on the shelves before the regulations are even approved! Wanna bet they expect approval (or know it's in the bag). But the real point is, they were aware of the proposed changes and they are ready with product to meet demand due to real time information acquistion and exchange.
Piker.
In 35 years of marriage, my wife and I have spend less than $1000 on new furniture (not counting the Serta mattress set).
We buy all our furniture at the second-hand store.
My buying habit it to "Buy American" as well. :) Yes, the price might be higher, but at least I am support American jobs in America.
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