Niagara Ceramics closing, ending 110 jobs (Unfair competition from China?)

The Buffalo News ^ | September 9, 2013 | David Robinson

[2ndDivisionVet]

Niagara Ceramics, the dinnerware manufacturer that was created after the closing of Buffalo China nine years ago, is shutting down, throwing 110 workers out of their jobs.

The company announced the shutdown of its sprawling factory at 75 Hayes Place on Monday in a filing with the state Labor Department.

Company officials, in the filing, cited “economic” reasons for the closing, which they said was effective immediately.

Robert L. Lupica, the former Buffalo China executive and president of Niagara Ceramics, could not be reached to comment.

Lupica was part of an investment group headed by Rep. Chris Collins, R-Clarence, that purchased the Buffalo business for $5.5 million from Oneida Ltd., which had announced the year before that the plant would be closed. The plant was purchased with a combination of Collins’ personal capital, bank financing and tax incentives.

Collins released the following statement Monday, noting that he was no longer involved with the company:

“I am sorry to hear of the closure of Niagara Ceramics, something I learned about today for the first time from the media. I transferred my ownership interest in Niagara Ceramics in 2012, at no cost, to the management team in an effort to give them the best chance possible at future success. I have had no involvement in the company since that point. Prior to 2012, I had not been involved in day-to-day management of the company since 2007.”

Buffalo China had at least 325 workers at the time of its shutdown in March 2004. Niagara Ceramics hired 240 workers as it began its operations, reducing wages and benefits from what they were under Buffalo China. By late last year, the company’s workforce had dwindled to around 110.

At the time, Lupica blamed the company’s shrinking workforce on the recession that began in late 2007.

The dwindling employment was at the center of controversial ads from supporters of former Rep. Kathleen C. Hochul that attacked Collins for job losses at the Buffalo plant. A review of the ads by The Buffalo News found that most of their claims were false.

The ads claimed Collins fired more than 100 workers after acquiring the company, but Collins supporters said the purchase was made five months after Oneida detailed plans to close the factory and that the new owners did not fire anyone.

Niagara Ceramics was one of just two major producers of commercial-quality dinnerware in the United States. The company supplied popular chain restaurants and nursing homes, and also made dinnerware used at local attractions, including the Roycroft Inn and Darwin Martin House.

The Longaberger Co. announced in May that it would take over a portion of the Niagara Ceramics plant and start making some of its pottery products in Buffalo as part of its push to eventually make all of its pottery products in the United States. Longaberger said it expected to employ 22 people at its pottery-making venture at the plant.

Collins said in his statement that Niagara Ceramics faced unfair competition.

“Niagara Ceramics consistently struggled because of unfair competition from Chinese manufacturers who benefit from China manipulating its currency at the expense of American jobs. As a member of Congress, I believe strongly that the U.S. must take a harder stand against this unfair practice by the Chinese government.”

[kaehurowing]

Obamacare

[Cringing Negativism Network]

People we need to work in America.

We need to stop sending US jobs everywhere else.

We need to bring them home. We need to build them, support them, and encourage them financially and every other way.

NOW.

[ogen hal]

To those effected who voted for DIMs/LIBs/RINOs...

Bwahahahahahahaha!!!!!!!!

[Cringing Negativism Network]

Today all over the media is a report, how this year America is ranked 17th in the world, or in otherwords the 17th best place to live.

What is very, very heavily downplayed is, that is down from 11.

We are sinking fast. And our media is out front, singing as loud as they can, in the rain.

[nathanbedford]

China and Japan have thousands of years of history of producing fine China but I suspect what was being produced for this market by this company is something quite different. This company was probably producing a commodity and they were unable to compete under the taxes and regulations, including Obamacare, impose on them in the United States against commodities produced by cheap labor and sold under a manipulated currency.

Much like immigration, our trade policy has been pretty much in line with the demands of the Wall Street Journal and it is time to reassess whether free trade, like open borders, can any longer be sustained by a welfare state competing against manipulated economies.

Open borders, whether admitting people or goods, is a political decision in which one part of society is benefited at the expense of another part of society. This is a reality that goes back to regional differences shaping America's response to the war of 1812. Should the country protect New England manufacturers at the expense of Southern consumers?

Today the Wall Street Journal wants us to protect American businesses with cheap labor through immigration and it wants us to protect high-tech exporters at the expense of commodity manufacturers. We have pretty much done so and the results are not pretty. But it is not as simple as that, we have benefited consumers but not if they are blue-collar workers in the manufacturing sector.

One thinks back to the warnings of Pat Buchanan and, dare I say it, Ross Perot which predicted the hardships we are now experiencing.

[Nik Naym]

You keep on saying “bring back jobs NOW” in response to damn near anything on FR.

So tell me, oh wise one, just HOW do you suggest that we do that?

(this oughta be good)

[central_va]

Tariffs. They worked until the Progressives lowered them to nil 100 years ago.

[uncitizen]

Sad.

[Nik Naym]

I didn’t ask you.

I asked that other union shill.

[1010RD]

What is your suggested schedule of tariffs?

What will you do to compensate consumers hurt by the tariff?

Do you think the sugar tariff has been good for America?

[taildragger]

One thinks back to the warnings of Pat Buchanan and, dare I say it, Ross Perot which predicted the hardships we are now experiencing.

It's worse, we don't have American Quality. Try buying replacement plumbing fixtures and your old knob doesn't fit the new valve because the tolerance stack up is all wrong and that means they have no QC or don't care in China. Want to buy 4130 Chrome-Moly Steel Steel Tubing for the Roll Cage in your Race Car? Better ask where it made, i.e the US, Germany, or China because what are Tubing "Certs" i.e. papers in China? Many in the know ask, and don't trust what in coming from China, we don't know if it really is 4130, close or absolute junk...

[dennisw]

lets send your job to china and see you squeal like a stuck piggie.

[SeminoleCounty]

Tariffs. They work

Free Trader Communism doesn’t work. You cannot provide any factual proof that it works

[SeminoleCounty]

Tariff rates based on other nations “dumping”....currency manipulation...VAT rebates....regional and international trade agreements signed

Consumers would have decent....and steady employment in manufacturing. Can’t be a consumer with no job or income

Sugar tariff kept Fidel Castro from getting any more powerful. Free Trader Communists are the only ones biatching about no Free Trade with a Communist country. Free Traders are the biggest enablers and supporters of Communism

[kearnyirish2]

“Obamacare”

Hillary and the Dems constantly run on a platform of jobs for upstate NY, the situation there continues to deteriorate, and they’ll (successfully) run on it again. NY state has the same problem as many Dem strongholds; too many people voting who don’t want a job, overwhelming the dwindling number who need the jobs.

NY state is beautiful country; it is also a harbinger of what awaits most of the US. Rustbelt cities filled with the permanent underclass, which is quickly changing from black to brown.

[DH]

“...they were unable to compete under the taxes and regulations, including Obamacare, impose on them in the...”

---

You have “hit the nail on the head” with that statement.

As an owner of a manufacturing business I can tell you that the cost of an employee and the massive regulations involved, makes it very hard to set the price of a manufacturer’s product at a competitive level with anyone or any foreign company not under the thumb of the U.S. government regulators.

Take the cost of unions and it gets much worse.

The simple way to bring America back to it’s glory is to completely remove all government and union forces against business and we would once again be the most powerful economy in the world.....in very short order.

[Vermont Lt]

Yeah, we need a trade war now. Good plan.

[DoodleDawg]

As an owner of a manufacturing business I can tell you that the cost of an employee and the massive regulations involved, makes it very hard to set the price of a manufacturer’s product at a competitive level with anyone or any foreign company not under the thumb of the U.S. government regulators.

OK so you have an hourly cost for employee and an hourly cost for regulations. How would you decrease each? For the employee you have wages, benefits, payroll and unemployment taxes. What percentage of the hourly costs are made up by these? What is your solution in that area? Under regulations you have an hourly cost per employee for keeping up with the paperwork. Again, what percentage of the hourly cost is made up by this and what goes in to it?

[DH]

The questions you ask clearly show that you have no experience in running a business; especially a manufacturing business.

If you actually ran a business you would not have to ask the questions you posted. Every one who runs any type of business from manufacturing to sales knows the costs incurred and imposed by government and union regulations.