La-Z-Boy to Invest $26 Million in Tennessee Factory Upgrades

February 3, 2017  by Larry Thomas in Business Strategy, Industry   

The 1.2 million square-foot Dayton campus, which is the company’s largest factory, employs approximately 1,400 people and is the only La-Z-Boy branded plant that manufactures furniture in all three upholstery categories -- recliners, motion sofas and stationary upholstery.

The company said it produces nearly 90% of the frame styles in the company’s branded product line and is responsible for almost $400 million in annual revenue.

The plant serves retailers in the northeast, southeast and Midwest and includes a small research and development operation and supply centers for metal stamping and wood fabrication that provide material for the company’s four additional U.S. La-Z-Boy branded manufacturing sites.

The company said it will break ground for the new Innovation Center later this month, with construction expected to last about 14 months. The 70,000 square-foot facility will replace an existing structure on site and will house a model shop, technology center, test lab and three-dimensional printing lab.  It will be home to about 70 to 75 employees.

Subsequently, the company will begin a 12- to 18-month renovation project throughout the Dayton campus relating primarily to modernization, technology and productivity enhancements.    

“Our company was founded with an innovative spirit almost 90 years ago, and that spirit remains at the forefront of everything we do today,” said Kurt Darrow, chairman, president and CEO. “With the Dayton operation our largest facility, it is imperative that we make the appropriate investment to maintain a high innovation quotient throughout the business while making the plant as safe, productive and efficient as possible.

“We are making this investment over a long period of time, in two distinct phases, and will be methodical throughout the process to ensure there is no disruption of service to our customer base and that we continue to deliver on our brand promise to the consumer – custom furniture delivered in four weeks or less – highlighting La-Z-Boy’s unique competitive advantage within the industry.”

Darrow said the company intends for the new Innovation Center to be a LEED-certified building utilizing sustainable building practices.

“Having a new modern Innovation Center that provides our team of engineers and design professionals with a collaborative work environment is critical as we bring exciting new products to market,” he said.

The second phase of the project will include construction of a new transportation terminal.

“Ongoing investment across our manufacturing operations is essential as we continue to enhance plant productivity and efficiencies, said Darrell Edwards, senior vice president and chief supply chain officer. “Additionally, we pride ourselves in maintaining a safe work environment and many of the upgrades we are making will further improve the practices and safeguards already in place.”