Webb Furniture to close Galax plant

Printer-Friendly Versionhttp://www.journalnow.com/servlet/Satellite?pagename=Common%2FMGArticle%2FPri...Page 1 of 211/15/2005Webb Furniture to close Galax plantCheap imports forced decision, official saysBy Richard CraverJOURNAL REPORTERTuesday, November 15, 2005Webb Furniture Enterprises Inc., a big proponent of antidumpingpetitions against Chinese wooden bedroomimporters, said yesterday that it will close its bedroom plantin Galax, Va., on Jan. 13.The layoff affects 309 employees at the plant and Webb'smain office, said Lee Houston, the president of themanufacturer.It is the second major layoff since April 2004 for the 80-year-old company. Once the plant is shut down, Webb willhave reduced its work force from a peak of about 750 to160. Houston said that Webb will continue to make mirrors and particleboard furniture.The layoff will affect 309 people at the Galaxplant and Webb's main office.(Journal File Photo)"We were one of the last 100 percent, American-made manufacturers of wooden bedroomfurniture, and we really thought we were going to be one of the last groups standing," Houstonsaid."We are disappointed that competition from illegally dumped bedroom imports from China hasforced us to close this facility."Webb participated with 30 U.S. manufacturers and five unions in the American FurnitureManufacturers Committee for Legal Trade that focused on the dumping of wooden bedroomfurniture into the U.S. market by Chinese manufacturers.Webb, along with Vaughan-Bassett Furniture Co. and Vaughan Furniture Co., held an event in July2003 in which 97 percent of more than 3,200 furniture-manufacturing employees signed a petitionrequesting federal enforcement of anti-dumping regulations.But since February 2003, the manufacturers have cut a combined 1,623 jobs. Vaughan-Bassett hashired 75 workers since January 2005.The committee officially filed the petition in October 2003, which ignited more than a year ofheated debate. Opponents, led by big-box U.S. retailers, importers and a few major U.S.manufacturers, said that the duties were a hidden tax on U.S. consumers.In December 2004, the U.S. International Trade Commission voted 6-0 that dumping had caused"material injury" to domestic manufacturers of wooden bedroom furniture.But the duties, at 8.6 percent on the majority of the Chinese manufacturers, proved too small toincrease Webb's sales, Houston said.

Printer-Friendly Versionhttp://www.journalnow.com/servlet/Satellite?pagename=Common%2FMGArticle%2FPri...Page 2 of 211/15/2005Industry analysts said that the petition served mostly to speed up the consolidation of woodenfurniture making in China."We still were holding our own until Labor Day, which is when sales became noticeably off asconsumers began to feel higher gas prices affecting their disposable income," Houston said.Houston said that Webb went to the fall High Point market with "high hopes of increased orders.""Our increased efficiencies enabled us to produce a high-quality bedroom suite at the $699 pricepoint," Houston said. "But the Chinese importers were showing similar suites at $299. When oursales people got back from their post-market trips, it became apparent we were not pricecompetitive enough, and our decision had become painfully obvious."Houston said that the decision "is gut-wrenching because these workers have families, and they'vedone what was asked of them.""But as long as U.S. consumers are so fixated on saving through imports, there's not going to bemuch left to be made in this country," Houston said.• Richard Craver can be reached at 727-7376 or at rcraver@wsjournal.comThis story can be found at: http://www.journalnow.com/servlet/Satellite?pagename=WSJ%2FMGArticle%2FWSJ_BasicArticle&c=MGArticle&cid=1128768153525&path=!business&s=1037645507703Go Back