Vaughan-Bassett Re-Opens Webb Plant, Adds Jobs

January 25, 2012  by in UnCategorized   

By Home Furnishings Business in Bedroom on January 26, 2012

Bedroom furniture manufacturer Vaughan-Bassett Furniture has purchased and will re-open the former Webb No. 1 plant in Galax, Va.

Vaughan-Bassett bought the plant, which is adjacent to Vaughan-Bassett's main factory, for $1.5 million, but the company's total new investment in its Galax manufacturing operation comes to $8 million, counting upfits at the former Webb facility and upgrades to the existing Galax plant. The combined projects should increase machining, assembly and finishing capacity by 50 percent; and new jobs to a region hard-hit by global sourcing.

Webb Furniture had closed Plant 1 in January 2006, laying off 300 workers. When the initial phase of the expansion project is completed in July, about 50 workers will be employed at the the old Webb plant. That number would increase further by the end of 2012, but depends on the company's growth rate in coming months. Today, Vaughan-Bassett employs about 630 people in Virginia and about 675 overall.    

In addition to acquiring the Webb factory, Vaughan-Bassett announced a major expansion of its Galax factory. The company has purchased more than $1.7 million of equipment to expand its rough end, which cuts lumber into a workable length, width and thickness and removes wood defects. That system will be installed during the week of July 4, when the plant closes for vacation. To make room for the new rough-end system, some machinery in Vaughan-Bassett's main plant will move next door to the former Webb No. 1 facility.

When completed in July of 2012, Vaughan-Bassett will have expanded its production capacity by up to 50 percent.

"Today, we are the largest wooden bedroom manufacturer in the United States, with almost 700 employees," said Wyatt Bassett, president and CEO of Vaughan-Bassett. "We need this expansion because we are growing quickly and we have reached full capacity in our Galax factory."

According to the company, 98 percent of Vaughan-Basset's sales come from products made in the USA, with less than 2 percent of sales coming from imports.

"In addition to opening a new factory the company will expand its current operation, and I congratulate this Virginia-grown company on its success as the largest manufacturer of wooden bedroom furniture in the U.S.," Virginia Governor Robert McDonnell said of the announcement. "Vaughan-Bassett has thrived in the Commonwealth for more than nine decades and I am confident it will continue to be a major employer and corporate partner in Southwest Virginia."

Vaughan-Bassett is receiving incentives and support for the plant re-opening and expansion project from local and state incentive programs. If the company meets certain capital expenditure requirements and adds 115 jobs in Virginia in the next 38 months, by March 2015, the company will receive approximately $56,250 in incentives from the City of Galax; $200,000 from the Virginia Tobacco Region Opportunity Fund; and $75,000 from the Virginia Jobs Investment Program. Those incentives represent less than 5 percent of Vaughan-Bassett's own investment.

"We are incredibly grateful to the Governor, to the folks at TROF and VJIP, and to the city of Galax for moving so quickly to help us reopen this factory and create more jobs here in Galax, Va.," said Chairman John Bassett. "They pulled together the necessary paperwork in just a few days when the process often takes weeks or months. Vaughan-Bassett is still here because we know how to move quickly and efficiently. We are extremely impressed that the city and the state have proven to be so efficient and nimble. And finally, we'd like to publicly thank State Senator Bill Stanley, who was instrumental in helping fast-track our applications with the state."

Vaughan-Bassett reported a 19 percent increase in sales during fourth-quarter 2011, which ended December 3.

Vaughan-Bassett's COO Doug Bassett credits the company's growth rate to a "Made in the U.S.A." trend among American consumers.

"Our sales first jumped after we were featured as the master bedroom set in the 'Made in America' house last February on The ABC World News with Diane Sawyer," Doug Bassett said. "Furniture dealers are reporting to us that their customers are asking for American-made products. We are benefitting from the fact that 98 percent of our furniture is made in the U.S.A. and the fact that we're the only large player offering domestically produced bedroom in the middle price points."

Vaughan-Bassett reported sales of $84 million in 2011.