Furniture business falls victim to 'China price' | Northeast Pennsylvania Business Journal | Professional Journal archives from AllBusiness.com
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Furniture business falls victim to 'China price'

By Curran, Robert

Tuesday, February 1 2005
Published on AllBusiness.com

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Imports from China are hurting America's furniture manufacturing business, and among the casualties is the well known Pennsylvania House Furniture in Lewisburg, which like others is feeling the sting from China's lower production and labor costs.

U.S. manufacturers and commerce officials are concerned about the growing problem from China, where the Chinese can manufacture furniture and other goods for 30 percent to 50 percent of the cost in America.

Production labor workers in China are paid about $120 a month, and top level Chinese engineers average about $1,200 monthly - far below the pay rates in the United States.

Pennsylvania House, a member of the La-Z-Boy Inc. family of companies, Monroe, Mich., was established in the late 1800s as The Lewisburg Chair Co. and renamed Pennsylyania House in 1933. With it's long history and customer base in mind, the current economic situation has especially become a worst case scenario. At press time, company treasurer Mark Stegeman said the Lewisburg plant was closing.

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