Furniture Factory Closes, Jobs Go Abroad

Workers fell silent as the last piece of furniture rolled off the assembly line at the Hooker Furniture factory in Kernersville, N.C. They had already prepared for the pulling of the plug.

The Hooker plant shut down last month, and, like the family of a dying senior, its staff had acquiesced to the end, as if jobs and factories — even whole industries — like men and women, were born to die.

"I can't imagine that it would feel any worse than it does today to come into this factory and see 250 dedicated employee-owners that have done everything we've asked them to do," Hooker CEO Paul Toms said at the time.

"Every time we've asked them to step up, they've done it. And we're still closing it. I feel like we've let these folks down, and I don't know what we'd do different."

Giant Sucking Sound?

Profits at the Hooker Furniture company have, in fact, continued to grow in recent years, though largely by outsourcing to cheaper manufacturers abroad — who this year accounted for about one-third of Hooker products. American jobs may go overseas, but there they fetch greater corporate profit for American companies at home.

According to Toms, the surge in foreign competition from low-wage nations like China — coupled with a wider downturn in the national economy — threatens to pull the whole American furniture industry into a fight for survival.

"It's unlike anything I've seen in my 21 years in the industry," Toms said. "A lot of plants have closed, people have been sent home, and it really has come quicker than anybody expected. I think it's hard to say, three, four, five years from now, what will this industry look like domestically."

The Kernersville plant, for example, reduced its materials costs 10 percent in the last two years, but "even with that, we don't seem to be competitive with these import products that are coming in for a fraction, 60 percent, of the cost we can produce them," Hooker President Doug Williams explained.

‘Pour-Down’ Economics

"If I don't work, I can't go out and spend money to shop or buy what I need, so that's going to put somebody else in jeopardy. And it's just going to be that trickle-down thing," said former Hooker employee Mildred Styles. "I think it's going to be more of a pour-down than a trickle-down, though, the way it's going right now. I think it's going to hurt everybody concerned."

But how much is that "Made in America" label actually worth to native consumers — especially in times of economic crisis?

"If things were equal, I would of course buy something that was made in the U.S.," admitted Tom Crompton, shopping with his family this summer at a North Carolina furniture mall. "But if it was significantly more expensive, and there was a cheaper product that I thought was of similar quality that was made somewhere else, I would probably buy the cheaper product."

"We all like to buy things at the best possible price, but I think as a country, we've kind of sold domestic manufacturing out," Toms said.

Immeasurable Loss

On May 28, Hooker supervisors called a meeting in the middle of the workday to announce the plant's closing. By late July, the last paychecks and severance payments had been distributed to nearly 250 employees — many of whom, like Carl Hayth, had spent decades in the furniture industry and at Hooker, and never worked at anything else.

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