Smaller duty recipients look to capital projects
By Heath E. Combs -- Furniture Today, April 23, 2007
High Point — Manufacturers receiving smaller antidumping disbursements report the duties are helping them fund capital improvements.
Gat Caperton, president and CEO of Tom Seely Furniture, which netted $90,757 in duties in 2006, said the money is being used to offset $2.5 million in debt the company has incurred while modernizing its facilities since 2003.
The money dispersed to Tom Seely is the second-lowest amount distributed among the 23 petitioning companies.
Tom Seely added about 12,000 square feet to its finishing room, doubling its size, and added a state-of-the-art finishing system and ventilation upgrades, he said. The additions bring the factory's total square footage to about 100,000 square feet.
Caperton said he believes the antidumping disbursements have been beneficial to his workforce.
"We made a commitment that we were going to be a domestic manufacturer, and to do so we needed world-class facilities," Caperton said. "It's been worthwhile. I've always written checks to the government. I'm not used to getting back money."
Harden Furniture received the third-lowest amount dispersed to petitioner companies — $92,411. Over the past several years, Harden, which turns 163 years old this year, has targeted $500,000 to $1 million annually to capital improvements, according to Daniel Tartaglia, vice president of finance.
Tartaglia referred more specific questions on antidumping expenditures to President and CEO Gregory Harden, who was unavailable. In December 2000, Harden had 645 employees, while during the same month in 2006, the count had decreased to 422 employees, according to Tartaglia.
Carolina Furniture Works in Sumter, S.C., where the company stands as the last of three local wood bedroom furniture makers still operating, has spent over $500,000 recently to upgrade equipment. In the past six months, it has improved its sanding line and added a new panel saw and other new equipment, said Cray Weeks, president and CEO of the 61-year-old company.
The company received $503,777 last year in antidumping money.
"The easy way for anybody is just to outsource product these days," said Weeks. "We've elected to invest in our people. We are concerned about our employees and we're trying to do our part to defend our niche against the onslaught of imports. Thus far, we've been successful. We continue to give it our best effort, and with the support of our dealer network we're going to be able to do that."
Weeks said the company, which he described as a small, low-profile manufacturer, continues to keep its customers happy through value product and quick shipping.
The dumping duties have helped the company modernize, he said, which led to the loss of a few jobs in its rough mill. The company also has lost some employees through attrition, but employment has remained level in recent years at about 200 workers and 190,000 square feet of manufacturing space, Weeks said.
"It was proven that (Chinese producers) were unfairly competing against us. So the results are there," Weeks said.
At Century, which received $374,183 in disbursements last year, the company has adjusted employment levels consistent with demand, but has never closed a factory, according to Ed Tashjian, vice president of marketing.
Century also has been focusing on more lean approaches to manufacturing and custom-order capabilities.
"Century is committed to manufacturing in the U.S, Tashjian said. "We reinvest heavily in our manufacturing facilities to make them more competitive."
One petitioner has gone out of business since last year's duties were distributed.
On Feb. 8, Maine-based Moosehead Mfg. told its 120 workers it planned to close, just two months after saying it would reinvest the $202,589 in antidumping duties it received.
