Plant closings erode industry -- More furniture made in China

The News & Observer ^ | Monday, August 23, 2004 | The Associated Press

[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:

• La-Z-Boy earlier this month announced a series of job cuts that will affect more than 500 workers, including employees at one of La-Z-Boy's division plants in Caldwell County north of Hickory.

• Bassett Furniture Industries this month announced plans to close a Macon, Ga., plant by Oct. 1, putting about 185 employees out of work. The company has operated the plant for 40 years.

• Thomasville Furniture Industries announced this summer that it will close an upholstery furniture plant in Statesville this fall. The closing will eliminate a factory employing 118 people.

• Vaughan-Bassett Furniture, which has led the fight among American furniture manufacturers against Chinese imports of wooden bedroom furniture, in June announced it will close its plant in Sumter, S.C. The move will eliminate 350 manufacturing, administrative and managerial jobs and represents a 21 percent reduction in the company's work force.

• Ethan Allen closed a plant in Boonville, N.Y., in June after operating the factory for 50 years. The closing put 266 employees out of work.

• Steelcase announced in January that it would close two wood furniture factories, eliminating 640 jobs. The plants were in New Paris, Ind., and Fletcher in Western North Carolina.

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."

[hushpad]

Yes, the price might be higher, but at least I am support American jobs in America.<<<

I like to think the price might be higher NOW, but buying American should eventually lower most things.

Americans are fickle. They wanted cheaper steel, high US prices (due to union labor, and enviromentalism IMO), was making Americans mad.

SO, Bush removes tarriffs on foreign steel (unable to get USA steel low, due to union labor/envoronmentalists), Americans start buying cheaper foreign steel.

Then The USA steel industry (UNIONS/ENVIROS) pitched a big fit!

Unions are useless. Get rid of them, we'll see lower prices from burgers to steel.