Posted on 11/23/2004 5:36:09 AM PST by Kennesaw
Columbus to lose Char-Broil plant
Company expects a number of jobs to be phased out over next two years as production moves to China
BY CHUCK WILLIAMS
Calling it one of the most difficult decisions in its history, the W.C. Bradley Co. announced Tuesday it will move the manufacturing of Char-Broil grills to China.
Char-Broil currently has 500 full-time and 1,000 seasonal manufacturing jobs in Columbus. A number of those jobs will likely be lost over the next two years, the company said.
Char-Broil plans to run its normal manufacturing schedule next year, which includes the production of about 2 million grills in Columbus. The company plans to produce some grills in Columbus in 2006, with all local manufacturing stopped by the end of that year.
"This was extremely hard and very painful," W.C. Bradley Co. Chairman and CEO Steve Butler said. "It was a decision we didn't want to make, but we didn't have any other choice."
The company is not ready to say just how many jobs will be lost. Including sales, marketing and management positions, Char-Broil employs about 840 full-time people, most of them in Columbus. It is the largest grill manufacturer in the United States.
"We expect there will be jobs lost, but we don't know how many to say at this point," he said.
The company plans to phase out the first 250 full-time jobs this summer.
Typically, seasonal jobs begin in late fall and end in the spring. "We are not sure how many of those jobs we will rehire in 2006," Butler said. "At this point, we just don't know."
The employees at the Columbus and Opelika, Ala., plants were informed of the decision during a 2 p.m. meeting Tuesday. It was held in the company's distribution warehouse next to the north Columbus plant.
About 800 employees were in the Columbus meeting. They were informed of the decision by Mike Butler, Char-Broil general manager. Steve Butler, no relation, also explained the decision to the employees.
Steve Butler said the pressure from Chinese manufacturers has been growing over the last four years. Three months ago, W.C. Bradley hired Bain & Company, an international consulting firm, to help weigh the options.
He said it came down to two choices -- move the manufacturing operation to China or "get out of the business." Char-Broil has been making grills in Columbus since 1949.
"We don't think that domestic manufacturing can be successful," Steve Butler said.
The reason?
The grills can be made for 25 percent less in southern China. That translates to a huge savings. Char-Broil's annual sales last year were about $500 million.
Those numbers are significant, said Greater Columbus Chamber of Commerce President Mike Gaymon.
"You take 25 percent of that and you are talking about $100 million or so," Gaymon said.
The W.C. Bradley decision also illustrates the impact of a global economy, he said.
"It is bringing the global international economy home in a negative way," Gaymon said. "There is nothing secure in this global economy. And there will be continued pressures on price."
W.C. Bradley had made moves in recent years to try and be competitive and continue to produce the grills locally, Steve Butler said. The company redesigned its product line for the upcoming year. It also adopted lean manufacturing principles.
"It all boiled down to we were at a 25 percent cost disadvantage," Steve Butler said. "We concluded we could not overcome that."
Employees will be offered severance packages and job retraining programs.
"We will have individual and small group meetings with employees over the next three days," W.C. Bradley spokeswoman Susan Wiggins said. "We will talk to them in more detail. We want them to be able to go home tonight and digest this. We expect they will come back with more questions."
Steve Butler said the company felt obligated to let employees know seven months in advance that their jobs would be lost. A lot of decisions about the transition are still being made. He said the company would look for ways to reuse its manufacturing plants and warehouses.
"We will make the best uses of our facilities and resources," Steve Butler said. "The hallmark of this company has been its ability to adapt and change with the times. This is an example of that tradition. We know that it impacts a large number of people in this community. And we are sensitive to that."
-------------------------------------------------------------------------------- Contact Chuck Williams at (706) 320-4485 or chwilliams@ledger-enquirer.com
I was thinking of getting a new grill this spring. Thanks for letting me know not to buy on of theirs. I buy American, period.
I was thinking of getting a new grill this spring. Thanks for letting me know not to buy on of theirs. I buy American, period.
Death in the BBQ family ping.
That smoked turkey sure sounds good!!!! We are only having my parents over, and my kids like the baked turkey better, so no smoked turkey this year. :(
I now know what brand my next grill will NOT be!
The char broil grills are cheap junk. Get a good one like the Weber. Well worth the price difference, or go with a cheap wal mart Fiesta if it's just burgers and you don't care if it lasts longer than the lava rocks.
But what the hey. The corporate god of lower prices to consumers must be served, and who cares how many bloody sacrifices are made upon the altar?
ping
Within a year..a Chinese company down the road will be building their design cheaper and selling it to Walmart.
And the managers and shareholders will be out. Just the way things work in China.
They might survive if they stood their ground and advertised made in the USA.
No surprise. Char-Broil grills are cheap junk and will be perfect for manufacture in the PRC.
You are so right. I am willing to pay extra for made in USA. Not just out of patroitism, but I havae found that the quality of the USA products are generally much superior and they last longer. There fore they actually save me money ing the long run because I get more use out of them.
They're feeling the heat from East Tennessee. Yankee Union wages are uncompetetive with southern nonunion workers.
So be it. I buy American made. I do not give a "kerry" where the company is based. And to me they did not handle it correctly. They lost me as a customer.
Agreed. I bought a C-B and it never worked right and eventually fell apart in less than 2 years. My dad gave me his old Weber, a very solid machine. It's >10 y.o. and still works great.
Build or Buy a homemade grill/smoker from a local.
I will not buy Chicom. Low prices that they so eagerly embrace also have low quality. I have found if you pay more for US made it generally will last longer then Chicom. Pay now or pay later it is all the same.
I had a Char-Broil some years back. It sucked.
Now I have a Weber, but I want something bigger.
ROFL!
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