Reinisch Converts to Import Model

May 15, 2006  by in UnCategorized   

By Home Furnishings Business in on May 2006 Curio, display cabinet and occasional supplier Philip Reinisch Co. is converting its 200,000-plus-square-foot plant in St. Anthony, Ind., to support a new business model that relies primarily on imported goods.

Chief Executive Officer Stan Reinisch said the move should be complete by mid-June. While Philip Reinisch has been importing items such as secretaries and entertainment centers for six or seven years, most of its core curio line had remained domestic.

“We’re expanding the amount of buying overseas and cutting back on domestic manufacturing. We’ll still be doing a lot of assembly of some pieces and all the warehousing at the plant,” Reinisch said. “The bulk of the line will come from China.”

He said costs for glass and other components drove the decision. Under the new model, customers can expect comparable goods at better pricing in some cases, and current pricing on other pieces that Reinisch said had simply gotten too expensive to make domestically.

The sourcing effort includes both finished goods and components produced for assembly stateside.

After the conversion, employment at the St. Anthony facility will drop from around 150 people to about 30.

“That number has already come down over the last two years mostly from ordinary attrition,” Reinisch said.