Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, June 26, 1993 TAG: 9306260045
SECTION: BUSINESS PAGE: A-4 EDITION: METRO
SOURCE: SANDRA BROWN KELLY STAFF WRITER
DATELINE: LENGTH: Medium
The expansion is expected to add about 100 jobs at American's Redd Level complex near Martinsville. However, the company said it will eliminate 161 jobs at its case-goods plants in Smyth County.
American is closing its Marion plant and cutting some jobs at the Chilhowie factory.
Smyth County employees were told this week that cutbacks will begin Aug. 23 and be completed by Sept. 17.
Robert Maricich, president of American, said the changes were approved Thursday by American's parent company, LADD Furniture Co. of High Point, N.C.. He said bids for a 100,000-square-foot building will be sought immediately with expected completion of the building by November.
Maricich said the addition of high-technology equipment will allow the company to make better quality furniture. Also, it will reduce the time between orders and delivery so the company can be more competitive globally.
He said the consolidation was necessary to make the greatest use of the new equipment and make production more cost efficient.
"A company either needs to pursue low labor costs or high technology. We decided to take the route of high technology," he said.
Martinsville is the headquarters of American's Contract division, which is a major U.S. manufacturer of furniture for hotels and motels, colleges and health-care institutions.
The company also is a major supplier to government agencies and makes residential furniture.
Maricich said the expansion, which is being labeled "Factory 2000," is a commitment to the belief that the furniture industry's business will improve in 1994 and 1995.
Currently, demand for furniture by government and universities is "pretty good," the health care part of the business is "great," retail demand is "moderately flat" and the hotel business "has improved ever so slightly," he said.
A job service manager at the Virginia Employment Commission in Marion said it was difficult to predict how the loss of jobs there will impact the area.
Marvin Leslie said the area is lucky to have diversified industry and that many of the manufacturing companies are working at capacity.
He said about 20,000 people, or 47 percent of Smyth's civilian work force, are in manufacturing jobs. He said the latest labor figures show unemployment at 8.7 percent.
by CNB