‘Made in USA’ means little to furniture buyers

Even companies that are proud of their continued commitment to domestic production are not 100 percent “Made in the USA.” Vaughan-Bassett Furniture Co. makes 96 percent of its furniture and other products at plants in North Carolina and Virginia, but there is that fraction that comes from plants overseas.

“We actually reduced the amount we imported in 2005,” said Doug Bassett, senior vice president of sales for the Galax, Va.-based company. “Maybe we’re the last man standing.”

To compete with importers, Vaughan-Bassett has worked to develop a reputation as one of the lowest-cost producers of wood bedroom furniture in the U.S., while also focusing on speed of production and delivery. Instead of taking weeks and months, Vaughan-Bassett can deliver orders of some of its products to most retailers in the eastern half of the country within 10 days.

Vaughan-Bassett also has reinvested some of its profits back into its plants and employees. Between 1997 and 2001, the company spent about $40 million on new equipment and technology, he said.

“Many of the companies that have become importers sealed their own fate by failing to invest in their own factories and people,” Bassett said. “They cry crocodile tears that they are being defeated by China, when in fact it was their management that failed to invest in them.”

But while Bassett said the company was more profitable in 2005 than 2004, he admits the company’s annual sales have fallen about 20 percent from their 2000 peak of $160 million.

“We have suffered from plant closures and lost sales,” Bassett said. “And we had to take steps to deal with it.”

Ken Smith, a furniture analyst with BDO Seidman in High Point, said he doesn’t know how long Vaughan-Bassett will be able to succeed as a primarily domestic manufacturer. He said “Made in the USA” tags don’t have a lot of marketing power, since the vast majority of consumers are mostly interested in price.

“A lot of people talk about it,” he said. “But they vote with their pocketbook.”

At Sam Harper’s store in Henderson, there’s not even a lot of talk. The co-owner of Vance Furniture Co., who has been selling furniture for 44 years, said it’s a rare event when one of his customers inquires about the origin of a piece of furniture.

“Once in a while we will get someone who comes in asking for something that is made in the USA,” he said. “I’d say 90 percent of people don’t know or care where something came from. And very few ask.”

Ask Stec, and he’ll tell you it’s just an extension of a well-established trend.

“If you look at Wal-Mart, it says it all,” he said. “They used to boast that everything they sold was made in America. Then it was mostly everything was made in America. Now it’s just the lowest prices — always.”

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