Martinsville furniture plant lays off 400 workers

By WSLS 10
Published: July 2, 2008

Four hundred full-time workers have been laid off from America of Martinsville Inc.’s Redd Level manufacturing plant.

The layoffs impact the wood furniture work force, and not the upholstered furniture work force. The cuts leave the Martinsville plant with a little more than 300 full-time employees.

Company President Noel Chitwood said in a news release that the company’s marketplace is changing, and customers are demanding a “much broader range of products than we can produce in Martinsville.” Chitwood said the company must import more products to meet that demand, and AOM plans to shift the bulk of its “case good production” overseas so it can remain competitive with other furniture companies.

This follows the trend in the furniture industry, and among businesses in Southside in the past decade, to move their production facilities out of the U.S.

Chitwood added in the news release, “It is certainly regrettable to see this work force reduction at AOM’s Redd Level facility. Our many fine employees have worked extremely hard over the years to produce quality wood furniture for our many hospitality and healthcare customers… We have studied this situation carefully for months. We brought in consultants to help us. Our employees have performed magnificently. Ultimately, we have been forced to conclude that if we are going to customer expectations and remain competitive in the marketplace, we must shift the bulk of our case good production overseas.”

Chitwood went on to say that American of Martinsville has been committed to manufacturing as much of the company’s product line in America as it possibly can. And that despite the layoffs, the company “continues that commitment.”

AOM plans to apply for benefits through the U.S. Trade Readjustment Assistance Act, and offer a severance package for its workers who are being laid off.