Skip to comments.Stanley Furniture Closing Robbinsville Plant (North Carolina)
Posted on 04/02/2014 10:17:02 PM PDT by 2ndDivisionVet
HIGH POINT, NC - Stanley Furniture Company, Inc. today reported it will cease domestic furniture production in the factory that supports its Young America brand.
We have a healthy Stanley business that is making money. It is supported by a wonderful heritage, strong product in the field and future pipeline, and we are looking forward to the prospects of focusing our team solely on the growth and profitability of this brand in the short-term
We have decided to cease manufacturing operations in Robbinsville, said Glenn Prillaman, President and Chief Executive Officer. After a thorough review of both our own operations and the current marketplace for nursery and youth furniture, management and the Board concluded that the Young America business could not achieve an acceptable level of revenue within an adequate time frame to assure sustainable profitability and has decided that it is time for our company to focus its efforts on our profitable and growing Stanley brand, continued Prillaman.
The company will honor all orders for Young America products placed on our before April 28, 2014. What is important now is that we exit our domestic operation in a way that minimizes the impact on our retail customers, and that we do all we can to help our approximately 400 associates in Robbinsville with this difficult change for them and their families. Additionally, we have retained services to assist in maximizing value from assets related to the Young America brand, commented Prillaman.
Orders for the companys Stanley brand were up double digits in the first quarter, even with the weather-related challenges that plagued retailers across the country. We have a healthy Stanley business that is making money. It is supported by a wonderful heritage, strong product in the field and future pipeline, and we are looking forward to the prospects of focusing our team solely on the growth and profitability of this brand in the short-term, concluded Prillaman.
The company ended its first quarter with approximately $16.7 million in cash and remains debt free. The results of the first quarter and impact of the restructuring will be discussed in detail on the upcoming conference call.
First Quarter 2014 Results
To allow for sufficient evaluation of restructuring charges, the company will delay its release of first quarter results until after market closes on April 30, 2014 and will hold its conference call on the following morning at 9:00 a.m. Eastern Time. The Annual Shareholders Meeting remains scheduled for April 17, 2014.
About the Company
Established in 1924, Stanley Furniture Company, Inc. is a leading designer and manufacturer of wood furniture targeted at the premium segment of the residential market. Its Stanley Furniture brand is supported by an overseas sourcing model and is distributed throughout the upscale market competing through superior product design, finish, styling and piece assortment. The companys common stock is traded on the NASDAQ stock market under the symbol STLY.
Ah, here we are, ... “In May 2010, Stanley shifted production of adult furniture to Southeast Asia vendors, mostly in Indonesia and Vietnam, in the process cutting 530 jobs in Virginia.”
I’m as guilty as anybody for acquiescing to this seemingly inevitable trend, but isn’t there a limit somewhere?
How can a company turn a profit with these albatrosses, both of which were championed by one of the four most evil women of the 20th Century. Yes, that's FDR's chickadee, Frances Perkins.
Told them a decade ago I was only interested in their US made furniture, which was about 30 per cent of their production at the time.
They didn’t understand why. Told the guy if that’s the way he felt about the U.S., he should move to China.
I don’t know. How can you can compete with slave labor? ... or what is tantamount to it.
A limit to stupid government regulations that make the US an unfriendly place to do business?
Bottomless well I’m afraid
Correct, but don't forget obamacare.
The Dem unemployment legacy can be easily observed by absolutely anyone.
Young Mr. Prillaman makes 300K a year.
Excuse me for laughing, but you could easily find a South Asian CEO for 1/3 of that. And he wouldn’t be some frat rat like Prillaman. He’d be one of the smarter people on the planet. Know some of them like that.
So the working people want too much? Bunk. With transfer and transaction costs now, overseas production saves only a few per cent.
This little pig just wants that extra little point or two because it bumps up the bonus. Minimum wage has nothing to do with it.
A Conservative Rebellion is brewing (as Jim Robinson has stated). That will set the stage for the abolition of the minimum wage, OSHA, the EPA, the NLRB and those other entities placing these United States at a competitive disadvantage. When that happens, Red China will again have its citizens living in thatched huts.
With or without the vituperation, that's the name of the game. Margin!
I would really feel safer if the US could become self sufficient. In the event of another world war, would we be able to supply ourselves with everything we need? I doubt it considering in that war our enemies would probably include China and southeast Asia. In fact, I doubt we would have the raw materials and manufacturing infrastructure or a skilled enough workforce to do what we did in WWII. Someone tell me I’m wrong.
What are they living in now? Concrete hellholes! You can't laugh off their capacity to take it. Heh.
Well...well...Carl Sandburg? I’ll just say I have as much admiration for him as I do for Upton Sinclair, another leftwing lunatic who strung some words together for a “living”.
I don’t blame them. The US taxes businesses at a higher rate than other western countries. Its a hostile environment to run a company here.
At least they’re fleeing before the obamacare mandate for business kicks in!
What part of “heh” don’t you understand?
Very well said!
When Calvin Coolidge was President, America's economic might was unchallenged. The absence of unions, the minimum wage, confiscatory corporate taxes and burdensome regulations allowed businesses to thrive. Liberty and the invisible hand of the free marketplace meant steady profits. In turn that led to thrifty, happy workers. That kind of America can -- and I believe will -- be restored by a return to Constitutional Conservatism and the Biblical Foundation that made these United States great!
Obamacare, Social Security and taxes force businessmen to make the tough decision of right-sizing. CEOs have a moral imperative and fiduciary responsibility to the investors and risk-takers who put it all on the line for an enterprise.
No I get it and only after posting did I realize my words may have comes across as mean-spirited. For that I’m genuinely sorry and I realize that linking to a pretty good poem by ol’ Carl doesn’t mean that you endorse his brand of wacky liberalism. I hope we’re okay since Conservatives are in for the fight of our lives as head toward 2016!
Slave labor from your perspective but a very good wage to those who earn it in other countries where inflation has not devalued their money. The US becomes more socialistic, other coutries become more capitalistic.
I think it’s all of these plus the lure of slave labor. Hey, why not? If there is no God and it’s legal, right?
Walmart helped put a lot of small stores, and small towns, out of business because the people in those small towns wanted to pay less for stuff. It’s human nature.
Seems like this company was making a profit, but it wasn’t good enough for young sell out Glenn Prillaman. I don’t blame unions or government reg’s for any of this. Like you said, how can you compete with slave labor, seems to me tariffs should rule the day once again. These globalist sure have an agenda and it’s not in the majority of Americans best interest. Of course any idiot voted democrat would buy a foreign product if there was an american product laying right next to it, so much for supporting your union brothers and accelerating the decline of manufacturing. I actually support unions, those men and their relatives knew which side of their bread was buttered on and bought American. The idiots now a days are clueless. I use to buy this one brand of tennis shoes because it was the last American brand there was, then they off-shored, I’m fed up with it. Bring back tariffs.
My husband and I were watching a documentary on Detroit, and all I could think was how much both repulicans and democrats have screwed our country. The democrats with their endless handouts and the republicans just supporting companies moving manufacturing out of our country.
What party stands for the hard working middle class. Neither party!
Free Republic is a Conservative site, and that means pro-God, pro-liberty and pro-freedom. Simply put unions are communistic. Even a cursory examination of unionism and its history reveals that it was tool of international marxism. The movers and shakers of the union movement were servants of the Comintern, comprising a rogue's gallery of some truly evil, despicable men from Bill Haywood, Eugene V. Debs, Samuel Gompers, Walter Reuther, I.W. Able and numerous others.
Supporting unionism inevitably goes hand-in-hand with all forms of liberalism: atheism, abortionism and homosexualism. Because I truly love America, I hate unions.
Supporting unionism inevitably goes hand-in-hand with all forms of liberalism: atheism, abortionism and homosexualism. Because I truly love America, I hate unions.
Well said, and don't forget corrupt ties with organized crime in modern times. History is our friend....
That is what we call CRAPITALISM
You can bet any of the Kentucky or Tennessee hillbilly union members from days past would spit in your eye if you implied they were communist. I’ve worked in industry my whole life and worked with a bunch of skilled union workers on numerous occasions. I’ve seen alot of stupid union moves over the years and I tend to agree with you generally. Let’s just say I support Americans over foreigner’s any day of the week and the way the Gop’e is rolling right now that should be evidently clear. It’s a mixed bag for me, support unions or support illegals. I have never been a union member either.
I only mention this because an industry that moves from the U.S. to Asia today may be doing it for perfectly good reasons that aren't obvious. Two possibilities in the furniture business: (1) maybe they're getting the wood for their furniture from Asia, and/or (2) maybe they're selling a lot of furniture to Asian customers.
Not really. I don't see where this company is unionized. Also, they are debt free and making a serious profit.
My sister-in-law is an interior decorator. She said most furniture production shifted to China 10 years ago.
We have a healthy Stanley business that is making money. It is supported by a wonderful heritage, strong product in the field and future pipeline, and we are looking forward to the prospects of focusing our team solely on the growth and profitability of this brand in the short-term...
Sounds like liberal speak for “We’re moving to China”
Ah yes, the mandatory excuse for why the economy sucks. It’s because it snowed this winter.
“”””””Orders for the companys Stanley brand were up double digits in the first quarter, even with the weather-related challenges that plagued retailers across the country. “”””””
Yes, when everyone in the U.S. is on welfare the the country economically collapses.
“Unions and the minimum wage are to blame.”
Very few if any furniture factories in the south were represented by unions. The wages in southern furniture plants are about $12.00 per hour which equates to $24,000 per year (50 weeks, 40 hours per week, $12 per hour). It would be very difficult for a head of household to raise a family on $24,000 per year today. Lower the pay to the federal minimum wage and the same worker will earn $14,500 per year.
In 2013 the average minimum wage in China was $264 per month which represents an annual income of $3,168. If the US minimum wage is to blame, and Chinese labor is the competition, what would you suggest is the appropriate pay for US labor in US factories? Should a non-union US furniture factory be paying its workers $3,168 per year?
The reality is an American worker cannot feed, clothe, and provide shelter for himself or herself, much less a family, on a wage competitive with Chinese workers. Chinese wages are so low it is more economical to ship lumber from US forests to China, convert the raw lumber to finished furniture, and ship it back across the ocean than it is to employ US workers doing the same job at minimum wage or even below minimum wage.
Unions and the minimum wage are not the problem. The problem is the Congress of the United States approved free trade agreements eliminating tariffs and quotas opening and up the US market to unrestricted sales of products by foreign factories. Once these policies were implemented the economics of entire industries changed. Corporations and Wall Street investment companies decided to allocate manufacturing capital outside the US, resulting in the deindustrialization of the United States over a period of 25 years.
If the same trade policies had been in effect in the second half of the 19th century, the United States would never have become a great industrial power. During the period after the Civil War Congress chose to sustain high tariff for the express purpose of encouraging capital investment in US manufacturing and transportation network required to move raw materials to the factories. Congress also encouraged massive immigration to supply low cost labor to man the factories.
Today we have chosen to eliminate tariffs. If the unions were banned and the minimum wage was eliminated today, the fundamental economics would not change. A US factory offering Chinese wages to workers would have no employees because a worker cannot afford to live in the USA on a Chinese wage.
The answer is simple but politically unacceptable to Wall Street and multinational corporations. Reinstate the tariff rates in effect before George H.W. Bush took office and it will become economically viable to manufacture consumer products in the United States for domestic consumption. Continue the current policies and watch more US factories and manufacturing jobs go offshore.
Twenty five years of the free trade experiment has gutted the US manufacturing economy and is destroying the middle class. Union greed and work rules certainly played a role in encouraging northern factories to move to the southern US in the 1970’s and 1980’s. However, it was elimination of trade barriers that caused factories to exit the US in the last 25 years, not the minimum wage or union activity.
If we continue the same trade policies, the US will look like a poor Central American country in another 25 years. Low wages, high unemployment, high crime, rampant corruption, a dictatorial government, and a two class society with the very poor and a very small ultra rich ruling class.
Both political parties are funded by Wall Street and large corporations. Both political parties supported globalization and free trade. As a result we never had a national debate about free trade, it quietly happened. The results have been disastrous for US workers and the total economy. However, no one in the political class today is even talking about changing policy. Running for office is expensive and any politician proposing a radical change in trade policy would be unable to find funding for an election campaign.
Is N. Carolina a Union state, or are they Right to Work?
The cost of Obamacare destroys yet another American industry.
-——Unions and the minimum wage are not the problem. ——
From a stockholders/owners view, there is no problem. To produce a profit, the cost of the commodity called labor can be reduced if noncompetitive plants are closed. What is frequently misunderstood is that the labor competition exists on a global basis.
The wreckage of WW II dampened the ability of many countries. For perhaps the last two decades there has been all sorts of growth that permitted them to act in ways previously not possible. The temporary advantage We had begin to dissipate.
The competition is now fully in force. The off the beaten path unbeaten paths to the mountains and Robbinsville are feeling the effect. They are no longer competitive.
The present is not a problem, it is a challenging opportunity.
Right to work
A good read, thanks for that.
I retrieved this data from here:
The United States is the world’s largest importer.
Imports in the United States for February 2014 were valued at $232,734,000,000.
U.S. main imports are:
Industrial Supplies, including crude oil (32 percent of total imports);
Capital Goods (24 percent);
Automotive vehicles, parts, and engines (13 percent);
Consumer Goods (12 percent);
Foods, Feeds, and Beverages (5 percent).
Main imports partners are:
China (18 percent of total imports);
European Union (16 percent);
Canada (14 percent);
Mexico (12 percent);
Japan (6 percent).
I’m not sure how they define “capital goods”.
What’s 1% of 200 trillion? (2 billion)
You sound like a good little communist.
A significant problem is the social costs placed on the rest of society when these factories close. Given that we as a society have chosen to end the laissez faire attitude of the 19th century when unemployed or injured workers were left to their own devices, today when a factory closes social benefits (unemployment insurance, welfare, retraining) are bestowed on the jobless. Those benefits are paid to the jobless by taking income from those with jobs through the tax system.
In addition, when towns are decimated by industry disappearing, high rates of unemployment typically result in drug use and crime. Again, those still working are taxed to pay rising costs for law enforcement, incarceration, legal aid, and drug rehabilitation. These are real costs to the economy which the firm who lays off the workers and departs the community does not incur.
Labor competition has always existed on a global basis. In the 19th century the new American nation had the choice of allowing open markets or creating a closed market. The founders and their successors chose to define free trade as the freedom for any US citizen to trade with any firm or nation. It did not mean open access for foreign nations and foreign firms to the US market. They early leaders understood that the immature US economy could not compete with European manufacturers. They also understood that if the US market were open with low tariffs, European manufacturers would flood the US market with their surplus production but would not invest in building factories in the US. As a result the young nation placed high tariffs on imports of manufactured goods. These high tariffs resulted in European investment in factories located in the US to avoid the high import tariffs.
Note that at the time wages in the US and Europe were not significantly different so while high tariffs protected US industry the tariffs were not intended to provide higher wages to US workers. In fact, during that time immigration policy was very loose for the express purpose of attracting immigrants to fill up the western lands as well as ensure a sufficient labor supply to keep wages down.
The US has both the population size and natural resources to have a self contained market. For a long period of our history we were primarily self sufficient and we can become self sufficient again if we resume a high tariff trade policy.
Nothing he posted was the least bit “communistic”. The company is very profitable, but the CEO decided he wants it to be even more profitable. So he moves production offshore. Maybe thats a good short term decision, but its a very bad long term decision.
Condemning the “rich” while defending the worker and their altruistic goals is most certainly communist lingo.
What else is a company supposed to do considering the taxes, regulations, and poor economy in America. His job is to keep the company profitable. In many other cases those companies are owned and run by foreigners who most certainly do not hold America as their priority.
Yes it sucks that all of our jobs are going overseas. Perhaps we should push back on taxes, OSHA, EPA, FTC, FDA, and every other out of control govt jobs program. That might make it easier and more profitable for those companies to stay here.
We don’t want a self contained Market
We want global market to sell In to
You are wrong. And couldn’t be more wrong. How is “defending the worker” communist lingo? Communism is about (among other things) state control of industry. We are talking about nothing of the sort. Lots of CEO’s have gone for more short term profits and ultimately ended up destroying their companies.
Henry Ford is a great example. He RAISED wages. Voluntarily. To outrageous levels by the standard of the day. And as a result, his employees were more loyal, AND able to buy the product they were making. It was good for business.
IF you think that pursuit of short term profits should be the CEO’s only goal, then clearly you know little about business.
Moving to China sounds like a good idea until they start a war. Then kiss the company goodbye.
So your solution is to raise prices for all Americans (aka, inflation) during an economic downturn, all for a vague goal of "more manufacturing" when we are still #2 in the world in manufacturing? Sorry, that would be a very poor idea. We already have WAY too many programs that essentially boil down to "have all Americans pay some more so that a few people can have XYZ". We don't need more.
(Our overlords are also doing EVERYTHING they can do keep inflation at an absolute minimum, because they know that if interest rates go up just a 2-3 points, there will be massive repercussions worldwide. The hyper-debt that Japan and the US have been living on for the past 6 years will hit both like a ton of bricks... and without anyone large enough to bail us out (Germany is barely big enough to bail out tiny Greece), it will spiral quickly. Inflation is their greatest and realest fear right now... and not just for their phoney-baloney jobs, either.)