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Furniture maker brings jobs back to U.S.

Thomasville Furniture factory, Lenoir, NC

- Dave DeWitt

Tower at homasville Furniture factory, Lenoir, N.C

- Dave DeWitt

Thomasville Furniture factory sign, Lenoir, N.C.

- Dave DeWitt

Sign at the entry to Lenoir, N.C.

- Dave DeWitt

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TEXT OF STORY

Kai Ryssdal: There's probably not a single part of the American economy that's had a rougher time this decade than manufacturing. Tens of thousands of jobs have been lost as factory work has been shipped to places like China and Indonesia. But some parts of the macro-economic equation might now be tilting in the other direction. And that has prompted one furniture-maker, Thomasville, to bring some of those jobs -- 100 of 'em in all -- back to its wood furniture plant in Lenoir, North Carolina. From North Carolina Public Radio, Dave DeWitt reports.


Dave DeWitt: Lenoir is the kind of town where the mayor is also a real estate agent and owns the local Ford dealership. David Barlow knows everything that's going on in his town, or at least he usually does. Thomasville's news caught him off guard.

David Barlow: It was a surprise to me at the point that I heard about it. We've always had some hope that maybe due to economic factors, maybe there was some possibility that we would get back some furniture jobs. So it was great news.

One hundred new jobs isn't much in a county that's lost 6,000 furniture jobs this decade. And the majority of Thomasville's manufacturing will remain in Asia. But Mayor Barlow says his town will take what it can get. And his hunch was right. Global economic factors are working in Lenoir's favor, for a change. Ralph Scozzafava is the CEO of Furniture Brands International, which owns Thomasville.

Ralph Scozzafava: You really have this accordion effect -- foreign exchange, the weakening dollar, you've got increased labor expenses in China as well, so you've really got a lot of macro factors that add to your costs.

Scozzafava says his cost of doing business in China has increased 15 percent in the last year. With oil prices so high, the idea of moving manufacturing back to the U.S. looks like a good idea. Analyst Jerry Epperson keeps tabs on the furniture industry, and he's not so sure.

Jerry Epperson: The problem is that a lot of these companies have shuttered their existing wood furniture plants, and you can't just come back into that plant and reopen it without reapplying for the permits and the environmental statements and of course, recruiting the labor. You can't put that genie back in the bottle.

Epperson says the pool of willing, trained furniture workers in the U.S. isn't what it once was. And in a few years, it might not be there at all. Scozzafava, the CEO of Furniture Brands, admits the shrinking furniture labor force is a concern.

Epperson: The more people are cross-trained and are learning other skills, then the harder it is for you to get the workforce you need to be successful. But I don't think we're there yet, thank god. And we're just gonna work our hardest to make it work, because we think it's very important.

[traffic noise] A traffic jam in downtown Lenoir is still a rarity, but car and foot traffic is much improved from five years ago. Back then, most of the shops around the town square were boarded up. Now, trendy restaurants and galleries are appearing. Mayor Barlow says Lenoir is trying to re-brand itself as a tourism and technology hub. He says while new furniture jobs are welcome, the industry itself might not have much of a future here.

Barlow: It used to be so many people would drop out of school and go to work in the furniture business. So, a lot of lessons were to be learned, I mean, and hopefully those parents now will know, "I can't let this happen to my child."

Mayor Barlow encourages visitors to take a drive south of downtown, along Morganton Boulevard, where Lenoir's past and future sit opposite each other. On the west side, the Bernhardt Furniture factory, a collection of rusting buildings operating at a fraction of what it once was. And across the road, to the east, a brand-new $600 million data center -- built by Google.

In Lenoir, North Carolina, I'm Dave DeWitt for Marketplace.

John Simmons's picture
John Simmons - Aug 19, 2008

The story about Lenior is a bit deceiving. The reason that the manufacturing jobs left in the first place is old fashioned greed. This part of NC was known as the "furniture capital of the world", If you bought furniture, chances are it had it's roots in the Lenoir / Hickory area. These furniture factories were owned by what is considered to be "old money". Owners of these plants tended to be old local families who saw dollar signs and sacrificed the american worker just so they could keep their pockets fatter. Slowly, they shipped these jobs overseas to China and began to replace workers who have vested twenty or more years with these companies plus, immigrant labor was more than happy to do the job for far less money. The furniture industry is one of the only manufacturing industries in the US that has no oversight. Workers saw their christmas bonus's cut, lay-offs, and short-time requirements, all while the companies were posting record profits. Eventually, these tactics caught up with these companies and they began to sell off to larger "parent" companies so they may try to stop the hemmorraging from becoming worse. It seems that bringing these jobs back to this area is too little too late. From the furniture companies' perspective they are trying to bring the jobs back here because gas costs have risen and it takes more money to bring the goods back to the US from China than it does to make it here in the first place. Seeing as almost everyone in this area knows or has known a relative or friend in the furniture industry, these comapnies are finding that bad blood is swirling within the population and the skilled labor they had, doesn't want to come back!