Manufacturers who move into and out from trading partners Countries.
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  1. #1
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    Default Manufacturers who move into and out from trading partners Countries.

    IKEA is closing their factory in the United States and moving it back home. On this issue we find it a topic of discussion. I Know anyone who wishes to bring manufacturing companies to or from the US,Europe, Australia or Asia do invest a lot on a location not in their home country for a variety of good reasons.

    It is sad to see a company come then set up and leave. Or also the reasons and examples of companies setting up business not in their home country opens up to reasons why they like doing so and what good they bring with their way of doing business.

    Perhaps someone understands the details of this enough to comment.

    Here IKEA is a icon and many people visit a large Store located in what is called a factory outlet.

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    How disheartening.

    Given that the plant equipment is less than 10 years old I imagine that whatever the cost pressure was that is driving the closure must have been pretty severe (if we take at face value that it really was raw materials that led to the closure). I imagine the 'materials' that go into manufacture an IKEA shelf are pretty straightforward. Wood chips, glue, laminate, paper, and some metal hardware. And that wood chips and paper products (packaging) probably comprise the largest proportion.

    Has something adverse happened to the supply of wood byproducts in the Danville, VA area recently? Closure of some paper/pulping/logging operation? Some industrial user of wood by-product snap up all the available materials?

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    The LA Times hints fairly strongly it was a pending union drive. It doesn't sound like a nice place to work so now people won't have to suffer that burden any longer. Not if you're from that town of course, but a 300 person plant closing is national news? What did they make, one particular bookshelf model? Probably only news because of the brand.

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    Ikea makes junk. Good riddance.

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    Who is a similar maker who does the best furniture now a days?

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    Quote Originally Posted by Spinit View Post
    Who is a similar maker who does the best furniture now a days?
    Don't know a ton about this, but from What my sister tells me(interior designer)

    Hooker and American heritage are hard to beat, at least for the leather/living room stuff.

    Ethan Allen is no slouch either.

    All of the above are pretty pricey though.

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    Why is Ikea relevant, and/or essential.

    who really cares?

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    The 300 people about to lose their manufacturing jobs care.

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    Quote Originally Posted by otrlt View Post
    Why is Ikea relevant, and/or essential.

    who really cares?
    Only because it is a foreign owned company who invested in the US for a factory. Any country which receives investments from another country for manufacturing is fair to take interest in. It may not be essential yet regarding foreign investors feeling the US is a good market to support by having a new manufacturer here or another country make it relevant.

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    Quote Originally Posted by Mrs Clarke View Post
    The 300 people about to lose their manufacturing jobs care.
    We have bigger fish to fry.

    The 300 Ikea employees are soon to get new jobs.



    and a pay raise.

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    Quote Originally Posted by Mrs Clarke View Post
    The 300 people about to lose their manufacturing jobs care.
    Gordon,
    I am certain now, that you haven't done significant business in the US.

    Stick to your day job (what ever it is?), and you can watch from a distance that the US Economy doesn't need low wage jobs.

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    Quote Originally Posted by Spinit View Post
    Who is a similar maker who does the best furniture now a days?
    The Chinese were producing far nicer quality goods, to name one. Getting good money for them as well. I don't think ikea has much market in the USA these days. Wayfair and others have eaten a chunk out of it.

    "Real" furniture was once a New England strength, then moved where the hardwoods were closer and cheaper, taxes and Unions not so close.

    Virginia, somewhat, the Carolinas even more so. Close to a hundred years by now?

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    Quote Originally Posted by otrlt View Post
    Gordon,
    I am certain now, that you haven't done significant business in the US.

    Stick to your day job (what ever it is?), and you can watch from a distance that the US Economy doesn't need low wage jobs.
    I'm not Mrs. Clarke and have no idea who is.

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    Quote Originally Posted by Gordon B. Clarke View Post
    I'm not Mrs. Clarke and have no idea who is.
    You're making me laugh. So, Mrs Clarke, how's life in Denmark these days ?

    You spent two years insisting I was thermite. You deserve this.

    Payback's a bitch

    And no, I am not Mrs Clarke. I wish I were that clever, it was a great idea

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    Quote Originally Posted by thermite View Post
    The Chinese were producing far nicer quality goods, to name one. Getting good money for them as well. I don't think ikea has much market in the USA these days. Wayfair and others have eaten a chunk out of it.

    "Real" furniture was once a New England strength, then moved where the hardwoods were closer and cheaper, taxes and Unions not so close.

    Virginia, somewhat, the Carolinas even more so. Close to a hundred years by now?
    Agreed Virginia, Carolinas and Tennessee pretty much have the high quality furnishings sewn up. With lines like Broyhill, Henredon, Lane, Drexel, Cat-napper/Lazyboy selling direct to the public why would anyone want to have IKEA in the house? Shit, the first time a drink is spilled it swells up like night shoppers at Walmart! I'm a firm believer in buying good shit once not cheap shit annually.

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    Quote Originally Posted by Gordon B. Clarke View Post
    I'm not Mrs. Clarke and have no idea who is.
    Mrs. Clarke knows,ask her.

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    Quote Originally Posted by Gordon B. Clarke View Post
    I'm not Mrs. Clarke and have no idea who is.
    Given it wasn't long ago, you were telling us you had a wife (and offspring...), I'd call that SOLID PROOF you've NOW gone crackers, or already were, then!

    IOW "Which TIME did you lie?"

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    Quote Originally Posted by EmanuelGoldstein View Post
    You're making me laugh. So, Mrs Clarke, how's life in Denmark these days ?
    Terrible, I have the Danish navy searching for me.boat.jpg


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