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Made in America… Hard to Find?

April 2006 By Sheila Long O’Mara
In today’s global economy, it’s rare to pick up an item and find a Made-in-the-U.S.A tag.

Practically everything, from apparel to electronics, is sourced from other parts of the world. Even the American icon Levi’s shifted its production of those famous San Francisco blue jeans out of the country a few years back.

The furniture industry is little different, save the few manufacturers that still produce domestically.

Domestic producers, however, continue to dwindle.

Just last month, Cresent Fine Furniture announced plans to shutter production at its Gallatin, Tenn., factory and shift its business to an import platform. By no means is Cresent alone in its move—they're just the latest example.

In fact, according to the latest numbers compiled by Mann, Armistead & Epperson in its year-end Flash Report, consumer purchases of imported wood furniture has increased at a rate of 10.6 percent compared to 3.7 percent for domestic-made goods. On the upholstery side, purchases of domestic goods fell .3 percent and imported product upholstery jumped 12.2 percent.

The firm goes on to report that imported product represents just over half—50.7 percent of all wood household furniture sold last year. In upholstery, imported goods made up 19.5 percent of sales.

Companies like Vaughan-Bassett, Stanley Furniture Co., Kindel and Stickley continue to produce the majority of their products in U.S. plants. Ashley Furniture takes about a half-and-half approach by blending product made in its domestic factories with those sourced offshore.

For upper-end producer Kindel Furniture, it’s an all-domestic approach to manufacturing. To ensure its Grand Rapids, Mich., operation remains in business, the company converted to a lean manufacturing model.

Last summer, Kindel consolidated production of chairs and occasional tables into its main factory. Transition of upholstery production followed in the fall.

Paula Fogarty, president, proudly points out that the company retained its 136-person work force.

The changes—implemented to remain competitive—netted another result. Kudos from the company’s customers on maintaining its approach to manufacturing domestically.

“We get a lot of credit for being crafted in the United States,” she said.

In the consumer mind, Bob Fogarty, chief executive officer, said made in America tends to mean something, especially at the high-end prices where Kindel’s line falls.

At the middle to lower price points, Vaughan-Bassett has staked its business on its domestic product.

More than 97 percent of the company’s line is made in the company’s factories in Galax, Va., and Elkin, N.C., said Wyatt Bassett, executive vice president. In addition to those two plants, the company runs a dimension plant for processing lumber in Atkins, Va.
 

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