Furniture makers mull moving back home
Furniture maker Carol Gregg got some puzzled looks when she went looking for a U.S. factory to make her Chinese antique reproductions.
Like Gregg, many furniture makers are finding it hard to return, primarily because of steep factory start-up costs and lack of skilled labor. The credit crisis that began with failing mortgages but has now led to tighter terms on virtually all loans also makes it tougher to finance a new plant.
However, the cost differences are narrowing, particularly for smaller companies that never could match the big players’ negotiating power in China. Gregg said three years ago, it was about 40 percent more expensive to manufacture in the United States than in China.
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