Reinisch shifts to all-import line
By Thomas Russell -- Furniture Today, June 5, 2006
St. Anthony, Ind. — A factory that produces curios and secretaries for Philip Reinisch Co. will cease production in June as it shifts to an all-import line.
Woodmaster Inc. employs 75 people in its plant here, said company co-owner Steve Hoffman. By June, only 20 of them will remain, in areas such as administration, logistics and warehousing.
Woodmaster opened in 1975 and began making middle to upper-middle-priced curios for Philip Reinisch in 1980. Today 100% of its production is for that company, Hoffman said.
He attributed the shutdown to rising raw materials costs. Higher costs for natural gas, used in the glassmaking process, have resulted in surcharges that have driven the cost of a 42,000-pound truckload of glass from $300 in January 2005 to $2,475 one year later, he said.
Hoffman added that the cost of solvents used in the finishing process also has doubled in the past year.
This isn't Woodmaster's first venture into importing. The two companies, which run independently from each other, have been importing as much as 30% of the Philip Reinisch line of curios, secretaries, consoles and curio fireplace units from China, said Reinisch CEO Stan Reinisch. Woodmaster will now import 100% from China.
Reinisch said because of its market niche, Woodmaster staved off imports longer than many case goods companies.
"We were good at keeping our costs under control for as long as we could," he said, adding that the decision to close the plant was difficult. "We had a wonderful factory."
The change ultimately will show up in product pricing. However, Reinisch said it was too early to provide specifics on savings or price point changes.
Thanks to a combination of overseas and domestic warehousing, he said, the shift to imports will not affect delivery times. The company also plans to begin offering container-direct shipments.
Curio cabinet and secretary manufacturer Jasper Cabinet has a plant that employs 15 workers some 50 minutes north of the Woodmaster facility. But Jasper President Robert Cribbs said the factory would not likely take on any of the displaced workers until its sales grow.
