Surviving N.Y. manufacturers optimistic
Thomas Russell -- Furniture Today, October 24, 2011
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JAMESTOWN, N.Y. — When solid wood bedroom producer Crawford Furniture Mfg. announced it was filing for Chapter 11 bankruptcy protection in August, it signaled the demise of yet another New York furniture producer.
Yet, despite the demise of Crawford and other case goods producers, the industry still has some stalwarts in a region that was once the bedrock of furniture production in the U.S. dating back to the 1800s.
Among the notable companies that still produce in the Empire State are Harden Furniture, L. & J.G. Stickley and Bush Inds., all of which are showing at this week's High Point Market.
High-end case goods and upholstery producer Stickley employs more than 1,000 workers at its Manlius, N.Y., case goods plant and headquarters.
"We have a good work force and are very committed to this market," said Aminy Audi, president and CEO, noting that the company has expanded the Manlius facility seven times since 1985. "Even through the recession we have had no layoffs and continue to work two full-time shifts."
In addition to having a good work force, she attributed the company's success to strong relationships with its dealers and its efforts to diversify its line through purchases of the John Widdicomb case goods and upholstery line in 2002 and case goods producer Nichols & Stone in 2008.
Audi said she was disappointed to hear the news about Crawford, but said that in today's economy such a development is not unexpected.
"I always think it is very sad when our industry loses any of its players," she said. "But I think it is the reality - everybody is facing global competition and with the economy being so uncertain, we are vulnerable.... We have taken this opportunity to broaden our product line and strengthen our team."
McConnellsville, N.Y.-based case goods and upholstery manufacturer Harden Furniture has 400 employees now, down from about 540 in 2008. Greg Harden, president and CEO, attributed the decline largely to attrition among the company's dealers.
"As a high-end manufacturer you don't have as many opportunities," he said. "We have seen an awful lot of our independent retailer base disappear."
He said the company continues to focus on expanding its business with designers and larger retailers that may not have been Harden dealers in the past.
"Our distribution model will continue to evolve," Harden said, adding that the company also continues to freshen its line with new product.
While Harden believes that overseas manufacturers face challenges with rising fuel, materials and labor costs, overseas labor costs remain far less than the typical U.S. manufacturer. That challenges Harden to find other ways to hold down production costs.
"As a domestic manufacturer, we never have had the luxury of throwing more labor at something," Greg Harden said. "If we have a process or manufacturing issue we will typically spend a lot of time analyzing it and finding a right solution - in terms of machinery, materials and design - versus labor."
New York furniture production has suffered setbacks in recent years due in large part to competition from imports, which rely on lower labor cost model. According the Bureau of Labor Statistics, furniture manufacturing employment in New York declined from 22,209 in January 2001 to just under 13,000 last December. In the same period, the number of furniture producers in the state shrank from 1,286 to 1,080, the BLS said.
The numbers represent the production of furniture and related articles, such as mattresses, window blinds, cabinets and fixtures.
Cheap imports haven't been the only challenge.
Some sources interviewed for this story also made the point that New York is a difficult state in which to do business. High taxes and workers compensation costs are challenging, said Jim Sherbert, president and CEO of ready-to-assemble specialist Bush Furniture, whose headquarters and plant are in Jamestown, N.Y.
"It's a very difficult environment in which to be competitive, nationally and certainly globally," Sherbert said. "It's difficult environment in which to work.... I am sure that Crawford suffers with that like anyone else has."
He added that Crawford had extended itself by "trying to be more vertical" in operating stores as well as manufacturing.
"I congratulate them for being aggressive. You have to try to find ways to create value and add to what your core base is. You have to find those channels to consumers or to resellers to be effective. They were trying to do that," Sherbert said.
Bush's Jamestown operation, which employs several hundred workers, primarily produces commercial grade office furniture. The company also makes some product in Erie, Pa., but has consolidated most of its domestic production in Jamestown since 2008, Sherbert said. Since that time, he said, its domestic employment is down about 50%.
He said he believes the company is on solid ground today thanks largely to steps it has taken over the last 18 months as a manufacturer and importer of office and residential furniture.
One of those steps is to rebrand its office division as BBF, short for Bush Business Furniture. He said clients are drawn to the division's quick turnaround on value-oriented products and its ability to do installations, particularly in smaller workspaces.
"The market is coming to us for these types of products," Sherbert said. "That is the backbone of the BBF model. It is getting good traction and we are excited."
Crawford, also located in Jamestown, told The Buffalo News earlier this month that it will close its five area retail stores. However, it has resumed its manufacturing operations.
Further details were not available from company president and CEO Michael Cappa, who did not return calls
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