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.
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